Epazz, Inc. (OTC PINK: EPAZ), a leading provider of cloud-based business software solutions, has announced that the Company, in addition to reducing and in some cases eliminating debt, has implemented a significant cost savings plan to reduce costs and development times for software applications.

The use of freely available open source code has enabled Epazz developers to reduce costs and development time for their current software packages. This will aid the Company by making their applications more cost effective and therefor, more competitive.

This also allows Epazz to develop new applications including mobile applications as well as custom payment systems much more expeditiously. Currently the Company is planning custom payment systems for the 420 Industry. More information will be forthcoming regarding this initiative.

Epazz, Inc.'s CEO, Shaun Passley, Ph.D., said, "Moving to open sourced software is going to make our products much more competitive while preserving our margins. Furthermore, this move will enable us to update our current applications quickly as well as development of new software packages and applications."

Passley continued, "We are exploring mobile application development as well as creating new payment systems for a variety of industries. We are specifically targeting the 420 Industry for customized payment system development."

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 otherwise need to purchase separately. Epazz's other products are DeskFlex™ (a room scheduling software) and AutoHire™ (an applicant tracking system).

SAFE HARBOR
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by the use of forward-looking statements such as "may," "expect," "intend," "estimate," "anticipate," "believe" and "continue" (or the negative thereof) or similar terminology. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results or those implied by such forward-looking statements. Investors are cautioned that any forward-looking statements are not guarantees of future performance and that actual results may differ materially from those contemplated by such forward-looking statements. Epazz, Inc. assumes no obligation and has no intention of updating these forward-looking statements, and it takes no obligation to update or correct information prepared by third parties that is not paid for by Epazz, Inc. Investors are encouraged to review Epazz, Inc.'s public filings on SEC.gov, including its unaudited and audited financial statements as well as its Form 10-Ks, and Form 10-Qs, which contain general business information about the company's operations, results of operations, and risks associated with the company and its operations.