CynergisTek, Inc. Sells Managed Print Services Business to Vereco, LLC for $30 Million

CynergisTek,
Inc., (NYSE AMERICAN: CTEK), a leader in healthcare cybersecurity,
privacy, and compliance, today announced that it has closed a
transaction to sell the assets used in its Managed Print Services (MPS)
business division for $30 million to Vereco, LLC, a leading independent
provider of healthcare document services. CynergisTek management
believes that this transaction will enable CynergisTek to prioritize its
core cybersecurity and privacy services.

Under the asset sale agreement, all operations and assets of
CynergisTek’s MPS business division were transferred to Vereco.
CynergisTek will continue to operate its business division of
cybersecurity, privacy, and compliance management consulting. Subject to
the terms and conditions of the agreement, the total consideration to
CynergisTek is $30 million, of which $1.5 million is subject to future
sales activity of the MPS business. CynergisTek’s use of the proceeds
will include paying down a majority of its existing debt, which will
allow more flexibility to grow the cybersecurity and privacy business.
CynergisTek and Vereco also entered into a strategic relationship that
will allow CynergisTek to provide cybersecurity assessments and managed
services to Vereco’s current and future clients, and also allow Vereco
to provide managed print services to current and future clients of
CynergisTek.

CynergisTek anticipates that this transaction will allow CynergisTek to
strengthen its balance sheet, allowing it to focus on expanding its
cybersecurity and privacy services and product offerings, and enabling
it to launch these services into other industries. Management believes
that the transaction also opens up potential opportunities for mergers
and acquisitions that would take advantage of the growing demand for
cybersecurity services in the marketplace.

“We believe this sale will allow CynergisTek to more effectively drive
towards our strategic focus of growth in our cybersecurity and privacy
business, improve our financial condition through the reduction of debt
and increase our agility as a company overall,” said Mac McMillan, CEO
of CynergisTek. “At the same time, we are entrusting our managed print
customers to a high-quality leading healthcare document services
business and will be working to ensure a quick and smooth transition for
all customers.”

“Our acquisition of CynergisTek’s MPS business is a win for all,” said
Vereco CEO Joe Flynn. “CynergisTek is able to focus on its award-winning
cybersecurity business, and we’re able to extend the reach and value of
our distinctive approach to healthcare document services. We’re excited
by the prospect of bringing the benefits of our enhanced organization to
our current and future clients.”

More information about the transaction will be available in a Current
Report on Form 8-K, which will be filed within four business days of the
closing of the transaction, as well as on CynergisTek's Fourth Quarter
and Full Year 2018 earnings call, to be held on March 28, 2019.

About CynergisTek, Inc.

CynergisTek is a top-ranked cybersecurity, privacy, and compliance
management consulting firm dedicated to serving the healthcare industry.
CynergisTek offers specialized services and solutions to help
organizations achieve privacy, security, and compliance goals. Since
2004, the company has served as a partner to hundreds of healthcare
organizations and is dedicated to supporting and educating the industry
by contributing to relevant industry associations. The company has been
named in numerous research reports as one of the top firms that provider
organizations turn to for privacy and security and won the 2017 Best in
KLAS award for Cyber Security Advisory Services.

Forward-Looking Statements

This release contains certain forward-looking statements relating to the
business of CynergisTek that can be identified by the use of
forward-looking terminology such as “believes,” “expects,”
“anticipates,” “may” or similar expressions. Such forward-looking
statements involve known and unknown risks and uncertainties, including
uncertainties relating to product/service development, long and
uncertain sales cycles, the ability to obtain or maintain patent or
other proprietary intellectual property protection, market acceptance,
future capital requirements, competition from other providers, the
ability of our vendors to continue supplying the company with equipment,
parts, supplies and services at comparable terms and prices and other
factors that may cause actual results to be materially different from
those described herein as anticipated, believed, estimated or expected.
Certain of these risks and uncertainties are or will be described in
greater detail in our Form 10-K and Form 10-Q filings with the
Securities and Exchange Commission, which are available at http://www.sec.gov.
CynergisTek is under no obligation (and expressly disclaims any such
obligation) to update or alter its forward-looking statements whether as
a result of new information, future events or otherwise.

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