Glowpoint Exchanges Debt for Equity

Glowpoint has exchanged
approximately $3.3 million of its senior secured convertible notes for
shares of its Series A Convertible Preferred Stock and Series A-3
Warrants on substantially the same terms as the debt for equity
exchange completed in November 2008. This additional exchange, which
was completed on Dec. 31, 2008, results in an aggregate reduction
of approximately $10.3 million in debt since Sept. 30, 2008,
leaving approximately $1.71 million of senior secured convertible
notes, maturing in September 2010, outstanding.

“This additional exchange of debt for equity is a strong vote of
confidence from our investors,” said Glowpoint CEO Michael Brandofino. This transaction, taken together with the debt
for equity exchange we completed in November 2008, provides Glowpoint
with a significantly improved balance sheet and simplified capital
structure that is an important element in our drive to continue to grow
revenue and achieve positive operating income.”

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