To Meet Increasing Demand for Security, Privacy and Compliance Services, Company Introduces Multiple New Services and Expands Contracts with Numerous Clients

CynergisTek™, an Auxilio company (NYSE MKT: AUXO), and industry leader in healthcare cybersecurity, information privacy and compliance, today announced it experienced unprecedented growth in the first half of 2017, with double digit net new client wins and expanded contracts. CynergisTek also expanded its service offerings over the past two quarters, with three new offerings unveiled, including Strategic & Remediation Services, HIPAA Research Program Assessment and Compliance Program Effectiveness Assessment services, in an effort to meet the increasing need for programs to support healthcare security, privacy and compliance.

Over the past six months, the company added multiple new clients to the roster to include some of the nation’s largest systems. CynergisTek also experienced an increased demand from existing clients to expand contracts with additional security, privacy and/or compliance services, with several provider organizations. Most importantly, the company continues to experience a significant renewal rate in its CAPP Managed Service Program. Additionally, CynergisTek continued to expand its relationships with Business Associates (BAs) such as CRISP, a health information exchange, and SI-Bone, a medical device company.

The company also saw a significant increase in contracts for its Managed Services offerings, which offers healthcare organizations designated support, management and resources to ensure effective privacy and security program through popular programs such as CynergisTek’s virtual CISO and its Managed Privacy Monitoring Service. The company also saw fast growth for its newest offering, Strategic Services, closing a $2 million engagement to provide a large health system with designated specialized consultants to assist with security remediation and technology implementation.

“With more and more desire for specialized expertise to address the sophisticated threats to protected health information, CynergisTek has continued to experience growth across our entire business,” said Mac McMillan, President and Chief Strategy Officer of CynergisTek. “We look forward to strengthening our relationships with existing clients and supporting new clients as we strive to offer comprehensive information management offerings that encompass all of our clients’ security, privacy and compliance requirements and need for qualified short and long term staff support.”

About CynergisTek

CynergisTek, an Auxilio company, (www.cynergistek.com) is a top-ranked cybersecurity, privacy and compliance consulting firm. The company offers solutions to help organizations measure privacy, security and compliance programs against regulatory requirements and assists in developing risk management best practices. Since 2004 the company has served as a partner to hundreds in the healthcare industry 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.

About Auxilio, Inc.

Auxilio (www.auxilioinc.com) is a leading provider bundling best of breed IT security and workflow solutions into its managed document services program designed exclusively for the healthcare industry. Since 2004, the company has saved more than $80 million for its clients by providing a vendor neutral program that enhances security of printed, stored data and digital documents while driving out costs and inefficiencies within the patient information logistical chain. The company’s document management best practices and intelligent workflow automation suite transforms printed documents to digital workflows, reducing waste and improving end-user satisfaction.

Forward Looking Statements

This release contains certain forward-looking statements relating to the business of Auxilio, Inc. 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/services 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. Auxilio, Inc. 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.

Investor Relations Contact:MZ North AmericaMike Cole, 949-259-4988Mike.cole@mzgroup.usorMedia Contact:Aria MarketingDanielle Johns, 617-332-9999 x241Senior Account Executivedjohns@ariamarketing.com

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