GLOBAL EPOINT COMPLETES $2.5 MILLION FINANCING



GLOBAL EPOINT MOBILE VIDEO SYSTEMS GIVE POLICE NEXT-GENERATION
SURVEILLANCE AND COMMUNICATION CAPABILITIES

 

 
   
Global ePoint Receives $3.9 Million Sales Order  
 
 

The $3.9 Million Blanket Sales Order Is Part of Continuing Business from an Existing Customer for the Supply of Industrial Computers; The Sales Order is Expected to be Fulfilled over Seven Months Beginning December 2003

 


CITY OF INDUSTRY, California.   --- August 25, 2003--- GLOBAL EPOINT, INC.   (the "Company") (NASDAQ SC: GEPT) today announced that its recently acquired McDigit division ("McDigit"), which manufactures customized computers and provides comprehensive solutions for industrial personal computer, commercial personal computer and contract manufacturing markets, has received an additional $3.9 million blanket sales order from an existing customer. Under the arrangement, McDigit will continue to provide industrial personal computers to the customer with deliveries under the new sales order to begin in December 2003 and continuing, once acceptance of the first article is approved, weekly through August 2004. The computers will be used for integration into the customer's advanced security technology.   The customer had been purchasing a similar amount of industrial computers from the Company under a prior sales order that will be fully delivered by the fourth quarter of this year.  

"We are pleased to have received this additional blanket sales order from our existing customer," said Toresa Lou, Chief Executive Officer of McDigit.   "We are proud of our ability to sustain mutually rewarding and on-going arrangements with our existing customer base.   This large sales order is the result of our concerted efforts to not only retain our on-going customer base, but to significantly increase our on-going business.   As we announced last week, we have signed up two new corporate customers that, if they order additional quantities as anticipated, could increase our annual sales next year by a potential of $5 million to $10 million.   We believe as a result of the continuance of our on-going business and the addition of this new business, we can generate significant increases in our revenue during the third and fourth quarters of this year as well as into next year."

"Our growth is directly attributable to our ability to provide flexible, cost-effective, turnkey manufacturing solutions to clients in need of robust, industrial personal computers," said Ms. Lou. "In the first two years of our business we focused primarily on providing industrial personal computers to be used in X-ray scanning equipment in U.S. domestic airports and, as a result, obtained approximately 80% of that market.   Now, based on that success, we are expanding our target markets into Homeland Security systems, video surveillance products, medical and biotech equipment, communications and broadcast equipment, and other industrial applications."

   
  About Global ePoint
 

Global ePoint has been in the process of a major transition over the past two years.  The Company had been undergoing a series of actions intended to diversify its activities and enable it to move forward with new market opportunities that could better enhance shareholder value.   The Company had been engaged in the lottery industry and was one of the largest providers of vending machines for the sale of instant-winner lottery tickets. On June 1, 2001, all of the Company's lottery assets and core business were sold as the first major step in its transition program.   On August 8, 2003, in order for the Company to enter into a larger more diversified target market and proceed with the second major step in the Company's transition program, the Company completed a merger with McDigit, Inc. (For more information relating to the merger, see the Company's definitive proxy statement filed July 1, 2003.)

As a result of the merger, the Company now has two main operating divisions.   One operating division manufactures customized computers and provides comprehensive solutions for industrial personal computer, commercial personal computer and contract manufacturing markets. This division currently provides approximately 80% of the industrial computers to companies that supply x-ray security equipment for the airline industry. The Company is now expanding its manufacturing into other markets, such as medical applications.   The Company's other operating division, Sequent Technologies, is beginning to establish initial market acceptance of its long-range video, audio and data transmission system, called the "RAIDIUS System," including the "Ranger" and "Paladin" products.   Sequent's systems are designed to transmit video, audio and data streams from anywhere using virtually any data transmission system and the Internet. Sequent's ability to network video surveillance systems and provide secure access via existing Internet, cellular and computer interfaces is designed to enhance the potential use of video in Law Enforcement, Public Safety, Commercial Security, Homeland Defense, Airport/Airline, and Military applications.

Any forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Act of 1995.   Investors are cautioned that actual results may differ substantially from such forward-looking statements.   Forward-looking statements involve risks and uncertainties including, but not limited to, the successful completion of equity raises, which may be necessary for Global to implement its plans to develop new market opportunities, continued acceptance of Global's products and services in the marketplace, competitive factors, new products and technological changes, Global's successful entry into new markets, Global's ability to increase its customer base, as well as general, political and other uncertainties related to customer purchases and agreements and other risks detailed in Global's periodic filings with the Securities and Exchange Commission.
  Contact Investor Relations for more information regarding Global ePoint