City of Industry, Calif.—May 5, 2004—Global ePoint, Inc. (the “Company”) (Nasdaq: GEPT) received orders for industrial computers totaling approximately $4.8 million from the major suppliers of conventional X-ray security screening systems for airports in the United States.
Under existing agreements with Rapiscan Security Products, Inc. and L3 Security & Detection System, the Company's contract manufacturing division, Best Logic, will manufacture custom-designed industrial-grade computers and begin deliveries this month and continue through March 2005. The Company's computers will be integrated into X-ray scanning systems, which are sold by Rapiscan and L3 to airports throughout the United States.
Toresa Lou, Global ePoint chief executive, commented: "We are pleased to receive additional orders under the ongoing sales agreements with these customers, which together dominate the market for conventional X-ray scanning equipment in U.S. airports. Our contract manufacturing operation offers all customers the benefits of production flexibility to meet varying customizing and volume requirements, global access to parts and components with competitive pricing, domestic quality control, and short lead-time with in-time production.
"On a broader scale, in addition to custom-manufactured computers, we will be extending contract manufacturing's production and cost advantages and research and development capabilities to support production of any new line of electronic product, such as digital video products and systems," Lou added. "We expect to realize certain synergies and efficiencies that are expected to not only hasten new product development but also help to accelerate sales growth in a variety of high-potential markets."
Global ePoint is a provider of computers, computing solutions, and digital video, audio and data transmission and recording products. The Company's primary operations are through two divisions: contract manufacturing and digital technology. The contract manufacturing division manufactures customized computing systems for industrial, business, and consumer markets; and other specialized electronic products and systems. The digital technology division designs and markets digital video surveillance systems for law enforcement, military, homeland security, commercial, and industrial markets. Global’s growth strategy includes developing new compression technologies and next-generation secure network digital video systems and servers for a wide range of new 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, the cancellation of previously placed orders by customers may negatively affect expected sales and sales growth. Synergies and efficiencies may not be realized. The forward-looking statements in this release 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.