| GLOBAL EPOINT INC. OUTLINES BUSINESS, GROWTH STRATEGY |
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| Potential for New Technology and Products |
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With the Company's current digital video and manufacturing operations as a base, the Company intends to enter new markets and develop new compression and chipset technology for next-generation digital video and Internet protocol (IP) applications for commercial, consumer, and other security and surveillance needs. Of note are plans to develop and market next-generation digital video recording systems incorporating new compression technology. The Company's strategy also includes a potential acquisition of a related-party global sourcing and sales and marketing company, with which Global currently has ongoing transactions. To support planned technology and product development, the Company intends to add to its domestic R&D team and form an offshore support team for cost-effectiveness. Global ePoint Chief Executive Toresa Lou commented: "Underlying this strategy is the potential for production and operational synergies between Global's existing and planned divisions and a more vertically-integrated business structure. Management feels there are significant advantages to be gained from internalizing and integrating operations from R&D to product design to parts and components sourcing to manufacturing, and then to distribution and sales. "Clearly, there is much to be accomplished, if we are to achieve our primary objectives of growing sales and revenues and realizing greater cost efficiencies for profit growth," Lou added. "However, we feel this new strategy is meaningful for Global's shareholders, since it provides a cohesive business plan and offers insight into the reasons for our positive outlook for the Company. To effectively implement several steps involved in this strategy, we are also considering various financing alternatives, including an offering of equity or debt securities." |
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| About Global ePoint | |
Global ePoint's contract-manufacturing division produces custom-designed computers and computing solutions for industrial, business, and consumer markets. Global's digital video division develops and markets long-range video, audio, and data transmission systems, including networks with secure access via existing Internet, cellular, satellite, and computer interfaces to enhance the use of video in law enforcement, military, commercial, and other security and surveillance applications. Global's growth strategy includes developing new compression technologies and next-generation digital video systems and servers for a wide range of markets and applications. For more information go to www.globalepoint.com. This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the company's current expectations, estimates, and projections, management's beliefs, and numerous assumptions, all of which are subject to change. These forward-looking statements are not guarantees of future results and are subject to numerous risks and uncertainties. Our actual results could differ materially and adversely from those expressed in any forward-looking statement. For example, we may not be able to close any acquisition and we may not be able to raise additional financing in the future. The forward-looking statements in this release and presentation speak only as of the date of this release. We undertake no obligation to revise or update publicly any forward-looking statement for any reason. These and other risk factors are detailed in our periodic filings with the Securities and Exchange Commission. |
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| Contact Investor Relations for more information regarding Global ePoint | |
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