CITY OF INDUSTRY, Calif.--(BUSINESS WIRE)--Jan. 3, 2006--Global ePoint, Inc. (Nasdaq: GEPT - News), a leading manufacturer of security technologies for the aviation, law enforcement, commercial and industrial markets, today announced the availability of an initiation of coverage report from the Red Chip Review. The report carries a 'Strong Buy' with two price targets: $6 in 12 months and $11 in 18-24 months. The Red Chip Review is an independent research organization paid by its subscribers and other clients. Global ePoint did not pay for the preparation of the report.
The Red Chip report reviews Global ePoint's three lines of business and the company's strategy; industry conditions; competitors, financial results, and other factors of interest to investors. The price targets established by Red Chip are derived by valuing each of Global ePoint's divisions based on market valuations for competitors. The report concludes "GEPT should trade in 2006 between $6.20 - 8.82 per share. In 2007, it could reach $11-$21 per share. PEG model indicates much higher valuation, but may be too optimistic, particularly with interest rates rising."
About Global ePoint, Inc.
Global ePoint designs, manufactures, sells and distributes digital video surveillance systems for the law enforcement, military, aviation and homeland security markets. On the cutting edge of digital technology, Global ePoint is developing new compression technologies and next-generation, secure network digital video systems and servers for a wide range of new markets, concentrating primarily on security and homeland defense applications. The Company also manufactures customized computing systems for industrial, business and consumer markets, as well as other specialized electronic products and systems. Complete vertical integration -- from design and manufacturing to sales and distribution -- allows the Company to capture efficiencies and maintain cost advantages in these growing markets, particularly homeland security. For more information, please visit www.globalepoint.com
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, whether Global ePoint's stock price will attain the Red Chip price targets during the time frames specified, or at all. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include general stock market conditions, risks related to the integration of the Company's recently acquired operations; market acceptance of the Company's products; delays in the introduction of new products; production and/or quality control problems; further approvals of regulatory authorities and the denial, suspension or revocation of certifications and licenses by governmental authorities; and the Company's ability to obtain capital as and when needed. For a discussion of these and other factors which may cause actual events or results to differ from those projected, please refer to the Company's most recent annual report on Form 10-KSB and quarterly reports on Form 10-QSB, as well as other subsequent filings with the Securities and Exchange Commission. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update or revise such statements to reflect new circumstances or unanticipated events as they occur.
Global ePoint, Inc.
Vice President, Investor Relations
CEOcast, Inc. for Global ePoint
Ed Lewis, 212-732-4300