TSS, Inc. Issues Statement About Promotional Activity Concerning Its Common Stock

ROUND ROCK, Texas, Feb. 10, 2017

On February 8, 2017, OTC Markets informed the Company that it had become aware of certain promotional activities concerning the Company and its common stock that has had an effect on trading activity in the Company's stock. Specifically, OTC Markets had been made aware of promotional newsletters touting the Company and encouraging investors to purchase the Company's common stock.

Until the disclosure from OTC Markets, the Company was unaware of the existence of the promotional newsletters and their effect on the trading activity. The Company has since received from OTC Markets samples of two promotional newsletters, which were sent from ProTrader on February 8, 2017, but the Company is otherwise unaware of the existence of additional promotional newsletters, if any, any related promotional activity, the parties responsible for the production of the newsletters and the extent of any of the email newsletters' dissemination.

A direct inquiry with the Company's officers, directors, and controlling shareholders was made as to whether or not they were directly or indirectly involved in the creation or distribution of promotional materials. Based upon such inquiry, the Company states definitively that the Company, its officers, directors and its controlling shareholders (i.e., shareholders owning 10% or more of the Company's securities) have not, directly or indirectly, authorized or been involved in any way (including payment to a third-party) with the creation or distribution of promotional materials, including the subject newsletter. Additionally, the Company, its other officers, directors and its controlling shareholders, have not sold or purchased the Company's securities within the past 90 days other than Gerard J. Gallagher, who is a controlling shareholder, a director and the Chief Technical Officer of the Company, who sold 125,000 shares of the Company's common stock in a private transaction for a price of $0.05 per share on December 28, 2016.

"The Company is not aware of the promotional materials' author or its affiliated entities or persons, and has not engaged directly or indirectly in any promotional activities nor retained any parties to engage in any promotional activities on behalf of the Company," stated Anthony Angelini, President and Chief Executive Officer of TSS. "The Company encourages those interested in the Company to rely solely on information included in its press releases combined with its filings and disclosures made with the Securities and Exchange Commission (available on the SEC's website). We thank OTC Markets for their openness and consideration to the investors of TSS."

The Company has not engaged any third party to provide investor relations services, public relations services, marketing, or other related services including the promotion of the Company or its securities since January 1, 2016. The Company has never issued shares or convertible instruments allowing conversion to equity securities at prices constituting a discount to the current market rate at the time of issuance.