Increased Revenues, Margins, Subscribers, Channel Partners and new IP Revenue Stream

LOS ANGELES, CA – August  16, 2016 – GTX Corp. (OTCQB: GTXO), an IoT platform and leading provider of personal location GPS wearable technology and wandering assistive technology, announced financial results for the second quarter ended June 30, 2016.

Second Quarter Highlights

• Revenue increased 36% over 2015 comparable period
• Subscriber revenue increased 133% over 2015 comparable period
• Gross profit margin increased from 27% to 45% over 2015 comparable period
• Operating expenses decreased 17% over 2015 comparable period
• Net operating losses decreased 34% over 2015 comparable period
• Active units in the field and subscribers in over 35 countries
• Vendor number for reimbursement in six states
• Shipped next version 1.25 GPS SmartSole
• Began monetizing our Comm Protocol “286” family patents
• Received our first military test order
• Signed research collaboration agreement with George Mason University
• Named 25 most empowering IoT companies in 2016

Q2 Initiatives included adding new customers and subscribers – creating a new revenue stream by monetizing intellectual property assets – increasing overall margins through cost reductions and better operational efficiency.

Two new master distributors were added, one in the U.S. and the other in the UK, both of which have dozens of salespeople and resellers operating under their management. This is important to note because it will allow GTX to scale distribution in certain vertical markets or territories without adding significant overhead and operation costs.

The Company also received its first military test order for a new non-cellular, encrypted GPS technology.  The proposed solution is a battery powered, broadcast only GPS tracker using RF technology (900MHz ISM bandwidth), with a nine mile line of site (LOS) range. Both the hardware and software of this new product will be designed and manufactured in house by GTX. Prototypes are expected to be completed and shipped by next month and if the test order is successful, this product has the potential to open up new opportunities within the government sector or commercial installations that have poor or no cell coverage. In addition the Company received several new vendor numbers for GPS SmartSole medical assisted reimbursement and is now operational with these codes in six states: Wisconsin, Ohio, New York, California, Illinois and Maine.

On the production front 500 units of version 1.25 GPS modules were prepped for manufacturing into SmartSoles, making this the second production run with several enhancements and an embedded Telefonica SIM card. This version allows GTX Corp to ship SmartSoles internationally and activate the SIM card remotely from its cloud based platform. This is a significant advancement because the Company no longer needs to custom make SmartSoles for international distributors with their own SIM cards, instead international customers can order right out of inventory.

The benefits include reduced manufacturing costs, improve delivery timelines and enable GTX to bill for international data charges increasing RPS (revenue per subscriber) which is continuing to trend up with subscriber revenue up 133% adding to an overall gross margin increase from 27% to 45%.

During Q2 2016 the Company also signed a definitive licensing agreement with Inventergy Innovations, LLC, a subsidiary of Inventergy Global, Inc. (NASDAQ: INVT). Inventergy is spearheading a monetization campaign for three of GTX’s “286” family of patents and will negotiate either a license for use or a sale of the patents to potential infringers that operate in the mobile tracking and monitoring industry. These three GTX patents are not limited to any particular form factor and are applicable to any generic mobile tracking device utilizing this technology which is embedded in millions of wearable and mobile devices and deployed across numerous industries.

The mobile health and wellness market which GTX pioneered is on the cusp of a significant stride forward. Thanks to modern wearable technologies that provide the means to collect and manage health and wellness data in a more convenient and automated fashion, wearables have emerged for fitness tracking, medical condition management, wellness monitoring, and personal safety assistance, among other use cases. This represents a sizable addressable market and creates multiple licensing opportunities with a potential value for the GTX Comm Protocol “286” patents that far extend beyond the other core GTX footwear patents and into areas such as:

• GPS watches
• Fitness wearables that track location
• Hand-held GPS devices
• Tracking apps on Smartphones
• Standalone GPS tracking devices
• Location based platforms in general

Patrick Bertagna, GTX Corp CEO, stated, “As an emerging technology company, we are always pushing for better, and by most metrics Q2 improved with trends showing more revenues, new revenues, higher margins, lower expenses and lower losses. As we move forward into the second half of 2016 we expect these trends to hold but we are also cognisant of our ebb and flow, as we saw in Q1 while we were transitioning to our next version 1.25 SmartSole, implementing a new connectivity platform and crafting our IP monetization strategy. Lack of sufficient capital for inventory, human resources and infrastructure has been a challenge since our launch last year. It has limited our ability to order appropriate inventory thereby limiting our ability to grow as quickly as we would like. It has also limited our ability to hire additional personnel to support growth. We believe that our increased margins and revenues, along with the new monetization IP campaign, will begin to ease our capital shortage problem.”

Bertagna continued, “Having said that, we remain focused on building brand and product awareness on a global scale, growing our channels of distribution and increasing sales, subscription revenues and margins in all our product categories. Looking ahead in 2016, we will work closely with our distributors and new partner Inventergy to explore new revenue opportunities, work with our vendors to scale our manufacturing processes in order to lower costs, reach out to broader market segments such as adults with autism, the security and military market, work with police departments, insurance providers, non-profits, University’s and continue applying for additional medical reimbursement codes. All of this with one goal in mind – to increase our revenues, global subscriber base and build a best in class IoT platform for the millions of people all over the world who need a simple, affordable and effective tracking and monitoring solution.”