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EPAZ Press Release

Epazz Reaches Over 60 Million Shares on Short Sales Report for August 2013

Epazz, Inc. (OTCQB: EPAZ) (the "Company"), a leading provider of cloud based business software solutions, today reports the Company's awareness of shareholders' frustrations with the performance of the stock over the last few months. Notably, there is data that leads to the possibility that over 100 million shares have been shorted in the month of August alone.
To view the short selling report on EPAZ, visit http://dtg.fm/epaz-short-selling

Additionally, Epazz announces that Cooling Technology Solutions, Inc. ("Project Flex") is finalizing its plans to spin off from Epazz. Epazz shareholders will receive shares in the spin-off company.

Only Shareholders of record date will receive the dividend. The Company approved a 1-10 stock dividend for shareholders of EPAZ. The spin-off of Project Flex will be above $0.01 per share. For each 10 shares of EPAZ common stock that a shareholder owns, the shareholder will receive 1 share of stock in the new Project Flex spinoff.

Epazz, Inc.'s CEO, Shaun Passley, said "This is our first spin-off, but not the last spin-off. Our business plan provides Long-term shareholders multiple opportunities for stock dividends. We believe transitioning Epazz to a holding company will provide long-term value."

About Epazz Inc. (www.epazz.com)

Epazz Inc. is a leading cloud based software company that specializes in providing customized cloud applications to the corporate world, higher education institutions and the public sector. Epazz BoxesOS™ v3.0 is the complete business web-based software package for small to mid-size businesses, Fortune 500 enterprises, government agencies, and higher education institutions. BoxesOS provides many of the web-based applications organizations would have to otherwise buy separately. Epazz's other products are AgentPower™, a workforce management software, and AutoHire™, an applicant tracking system.