Market Overview

GlobalSCAPE Announces Plan to Launch Modified Dutch Auction Tender Offer

Share:

Terms include repurchase of up to $15 million in value of common
stock at a purchase price between $4.00 and $4.50 per share

GlobalSCAPE,
Inc.
(NYSE American: GSB)
("GlobalSCAPE" and/or the "Company") today announced its plan to launch
a modified Dutch auction tender offer ("Tender Offer") to purchase up to
$15,000,000 in value of shares of its common stock, par value $0.001 per
share (the "Shares") at a purchase price not greater than $4.50 nor less
than $4.00 per share. On August 20, 2018, the closing price of the
Company's common stock was $3.47 per share. The Tender Offer is expected
to commence in the next few days and will remain open for 20 business
days.

A modified Dutch auction tender offer allows stockholders to indicate
how many Shares and at what price within the range described above they
wish to tender their Shares. Based on the number of Shares tendered and
the prices specified by the tendering stockholders, the Company will
determine the lowest price per share (the "Purchase Price") that will
enable it to purchase $15,000,000 in value of Shares at such price, or a
lower amount depending on the number of Shares that are properly
tendered and not properly withdrawn prior to the expiration date. All
Shares purchased in the Tender Offer will be purchased at the same
Purchase Price, even if the stockholder tendered at a lower price. If
the Tender Offer is fully subscribed, the Company will have purchased
approximately 15.2 percent to 17.1 percent of outstanding Shares as of
August 20, 2018.

If the number of Shares properly tendered at or below the Purchase Price
and not properly withdrawn prior to the expiration date would result in
an aggregate purchase price of more than $15,000,000, the Company will
purchase Shares tendered at or below that price on a pro rata basis. The
Tender Offer will not be conditioned upon any minimum value of Shares
being tendered or contain any financing conditions. The Company intends
to fund the Purchase Price of the Shares using available cash.

While the Company's Board of Directors has authorized the Company to
make the Tender Offer, neither the Company, nor its Board of Directors,
makes any recommendation to any stockholder as to whether to tender or
refrain from tendering any Shares or as to the price or prices at which
stockholders may choose to tender their Shares. The Company has not
authorized any person to make any such recommendation. Stockholders must
decide whether to tender their Shares and, if so, how many Shares to
tender and at what price or prices to tender. In doing so, stockholders
should carefully evaluate all of the information included or
incorporated by reference in the Tender Offer documents (as they may be
amended or supplemented), when available, before making any decision
with respect to the Tender Offer, and should consult their own broker or
other financial and tax advisors.

The Company's directors and executive officers, and their respective
affiliates, are entitled to participate in the Tender Offer on the same
basis as all other stockholders. Thomas W. Brown, David L. Mann, Robert
Alpert and C. Clark Webb, directors of the Company, have indicated that
they intend to participate in the Tender Offer, although no final
decision has been made as to the amount of Shares to be tendered. We are
not aware of any other officers or directors that have determined to
participate in the Tender Offer at this time. In addition, 210/GSB
Acquisition Partners, LLC, an entity affiliated with Robert Alpert and
C. Clark Webb, and a holder of approximately 18% of the outstanding
Shares, has indicated that it has not made a determination at this time
as to whether it will participate in the Tender Offer.

"GlobalSCAPE believes this Tender Offer provides an efficient mechanism
for shareholders looking to monetize all, or a portion of, their stock
at a potential premium to the Company's current share price, and is
consistent with its long-term goal of maximizing shareholder value,"
said Matt Goulet, President and CEO of GlobalSCAPE.

Stephens Inc. will serve as sole dealer manager for the Tender Offer.
D.F. King & Co., Inc. will serve as information agent for the Tender
Offer. Stockholders with questions, or who would like to receive
additional copies of the Tender Offer documents once they are available,
may call D.F. King & Co., Inc. at (877) 297-1744 or email globalscape@dfking.com.

About GlobalSCAPE, Inc.

GlobalSCAPE, Inc. (NYSE American: GSB)
is a pioneer in securing and automating the movement and integration of
data seamlessly in, around and outside your business, between people and
places, in and out of the cloud. GlobalSCAPE provides technology that
automates your work and secures your data, while giving visibility to
those who need it. GlobalSCAPE makes business flow brilliantly. For more
information, visit http://www.globalscape.com
or follow the blog
and Twitter
updates.

Additional Information Regarding the Tender Offer

The Tender Offer described in this press release has not yet commenced.
This press release is for informational purposes only. This press
release is not a recommendation to buy or sell Shares or any other
securities, and it is neither an offer to purchase nor a solicitation of
an offer to sell Shares or any other securities. On the commencement
date of the Tender Offer, a Tender Offer statement on Schedule TO,
including an offer to purchase, a letter of transmittal and related
materials, will be filed with the United States Securities and Exchange
Commission (the "SEC") by the Company. The Tender Offer will only be
made pursuant to the offer to purchase, the letter of transmittal and
related materials filed as a part of the Schedule TO. Stockholders
should read carefully the offer to purchase, letter of transmittal and
related materials (including the documents and information incorporated
by reference therein) because they contain important information,
including the various terms of, and conditions to, the Tender Offer.
Once the Tender Offer is commenced, stockholders will be able to obtain
a free copy of the Tender Offer statement on Schedule TO, the offer to
purchase, letter of transmittal and other documents that the Company
will be filing with the SEC at the SEC's website at www.sec.gov
or by calling or emailing D.F. King & Co., Inc., the information agent
for the Tender Offer, at (877) 297-1744 or email globalscape@dfking.com.
Stockholders are urged to read these materials, when available,
carefully prior to making any decision with respect to the Tender Offer.

Safe Harbor Statement

This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. The words "would," "exceed,"
"should," "anticipates," "believe," "expect," and variations of such
words and similar expressions identify forward-looking statements, but
their absence does not mean that a statement is not a forward-looking
statement. These forward-looking statements are based upon the Company's
current expectations and are subject to a number of risks, uncertainties
and assumptions. The Company undertakes no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise. Among the important factors that could cause
the actual results of the operations or financial condition of the
Company to differ materially from those expressed or implied by
forward-looking statements include, but are not limited to, the overall
level of consumer spending on our products; general economic conditions
and other factors affecting consumer confidence; disruption and
volatility in the global capital and credit markets; the Company's
ability to protect patents, trademarks and other intellectual property
rights; any breaches of, or interruptions in, our information systems'
legal, regulatory, political and economic risks in international
markets; the results of our reduction in force; the discovery of
additional information relevant to the internal investigation; the
conclusions of the Company's Audit Committee (and the timing of the
conclusions) concerning matters relating to the internal investigation;
the possibility that additional errors relevant to the recently
completed restatement may be identified; pending litigation and other
proceedings and the possibility of further legal proceedings adverse to
the Company resulting from the restatement or related matters; the costs
associated with the restatement and the investigation, pending
litigation and other proceedings and possible future legal proceedings;
reduction in our cash and cash equivalents as a result of the Tender
Offer; and our decreased "public float" (the number of Shares owned by
non-affiliate stockholders and available for trading in the securities
markets) as a result of the Tender Offer and other share repurchases.
More information on potential factors that could affect the Company's
financial results is included from time to time in the Company's public
reports filed with the SEC, including the Company's Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form
8-K. All forward-looking statements included in this press release are
based upon information available to the Company as of the date of this
press release, and speak only as of the date hereof.

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