COLUMBUS, OH — (Marketwired) — 08/14/13 — GlobalWise Investments, Inc. (OTCQB: GWIV) (OTCBB: GWIV) (the “Company”) () and its wholly owned subsidiary Intellinetics, Inc., a leading-edge technology company focused on the design, implementation and management of cloud-based Enterprise Content Management (“ECM”) systems in both the public and private sectors, announced financial results for the second quarter ended 6/30/13.

The Company-s total revenues for the quarter ended 6/30/13 were $581,164 as compared to $887,285 for the quarter ended 6/30/12, a decrease of $306,121, or 35%, primarily attributable to decreases in revenues from software licenses with professional services and consulting services. Gross profits were $398,801 for the quarter ended 6/30/13 as compared to $597,123 for the quarter ended 6/30/12, representing a decrease of 33%, primarily as a result of the decrease in revenues.

GlobalWise-s costs of revenues were $182,363 and $290,162 for the quarters ended 6/30/13 and 6/30/12, respectively, representing a decrease of 37%. The lower cost of revenues is primarily attributable to a decrease in third-party costs. As a result, gross margins were 69% and 67% for the quarters ended 6/30/13 and 6/30/12, respectively, an increase of 2%.

Total operating expenses for the quarter ended 6/30/13 were $766,481 as compared to $680,062 during the quarter ended 6/30/12, representing an increase of 13%.

As a result, GlobalWise reported a net loss of $408,907 for the quarter ended 6/30/13 compared to a net loss of $155,250 for the quarter ended 6/30/12, representing an increase of $253,657.

Matthew Chretien, President and CEO of GlobalWise, stated, “While there continues to be much room for improvement, I-m very pleased with certain aspects of our operational performance during the quarter ended 6/30/13. We continue to develop and expand our software as a service revenue stream through our expanding network of channel partners. As we continue down that path, we expect to continue to see fluctuations in revenue which reflect the net impact of channel partner-specific sales plans and priorities. While subscriber growth through software as a service delivery is a key strategic goal, our channel partners also are able to sell premise-based solutions. Thus, quarter to quarter variations in revenue sources are expected and reflect different channel partner-specific strategies and results. Over the long term, we expect software as a service will continue to increase as a percentage of total revenue. As an indication of the anticipated change in our revenue stream, at December 31, 2011, we had eight customers subscribing to software as a service and at December 31, 2012, we had 231 customers subscribing to software as a service, with an increase to 357 customers subscribing to software as a service by June 30, 2013.”

GlobalWise Investments, Inc., via its wholly owned subsidiary Intellinetics, Inc., is a Columbus, Ohio based Enterprise Content Management (ECM) pioneer with industry-leading software that delivers cloud ECM based solutions on-demand. The Company-s flagship platform, Intellivue, represents a new industry benchmark and game-changing solution by enabling clients to access and manage the content of every scanned document, file, spreadsheet, email, photo, audio file or video tape — virtually anything that can be digitized — in their enterprise from any PC, laptop, tablet or smartphone from anywhere in the world.

For additional information, please visit the Company-s corporate website:

This press release may contain “forward-looking statements.” Expressions of future goals and similar expressions reflecting something other than historical facts are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements may include, without limitation, statements about our market opportunity, strategies, competition, expected activities and expenditures as we pursue our business plan. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot predict the effect that market conditions, customer acceptance of products, regulatory issues, competitive factors, or other business circumstances and factors described in our filings with the Securities and Exchange Commission may have on our results. The company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.

GlobalWise Investments, Inc.

Matthew Chretien
President & CEO
614-388-8909

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