Merger is Part of Series of Transactions Designed to Transform

Global ePoint and Enhance Shareholder Value

SAN MARCOS, California, April 2, 2003 – GLOBAL EPOINT, INC. (“Global”) (NASDAQ/”GEPT”) today announced that it has signed a definitive agreement (the “Agreement”) to acquire 100 percent of the issued and outstanding stock of McDigit, Inc. (“McDigit”). McDigit, through its subsidiary Best Logic and its acquisition of the long-range video, audio, and data transmission system technology and related brands from Sequent Technologies, Inc., is positioning itself to become a leading provider of Homeland Security technology.

The Agreement provides for an exchange of securities pursuant to which Global will acquire all of the issued and outstanding equity securities of McDigit in exchange for an aggregate, subject to certain performance conditions, of not less than 5,920,745 shares of Global’s common stock, approximately 55.1% of Global’s common stock post-merger. Upon achievement of financial milestones for the fiscal years 2003, 2004 and 2005, as specified in the Agreement, shareholders of McDigit may be entitled to receive additional shares of Global’s common stock, with the aggregate of such issuances not to exceed 80% of the total of the then outstanding Global common stock, including options, warrants or similar instruments that may be issued to the equity holders of McDigit pursuant to the Agreement.

Upon execution of the Agreement, McDigit paid Global a good faith $300,000 deposit, which will only be refundable under certain limited conditions. Global intends to file with the Security Exchange Commission within the next 10 days proxy materials for a special meeting of shareholders for the purpose of voting on the approval of the merger. The Agreement is subject to a number of conditions, the most significant of which are shareholder approvals and the requirement that McDigit provide forecasts, based on reasonable expectations of its management and founded by reviewable assumptions, showing that its financial performance for 2003 will exceed $30 million in revenue and $3 million in net income.

“We are excited about the opportunity to merge with Global ePoint,” said Johnny Pan, principal shareholder of McDigit. “The anticipated merger with Global ePoint will provide additional assets, including management and international relationships, that can significantly assist in accelerating the growth of the companies.”

Frederick Sandvick, Global’s Chairman and Chief Executive Officer, commented, “We are very pleased to have negotiated what we believe can be a very synergistic and growth-oriented merger for Global. McDigit can provide Global with immediate revenue from proven on-going business as well as exciting new products that can accelerate the Company’s launch into a large and expanding market. Over the past two years, we have set forth on a series of actions intended to transform Global and to strategically move forward with new market opportunities. On June 1, 2001, we sold our core lottery business in order to provide us the liquidity and up front cash we required to proceed with our strategic initiatives. The sale of our lottery business was the first major step in Global’s transformation process and the entry into a new market opportunity will be our second major step.”

Sandvick noted, “We believe this merger not only provides our shareholders tremendous upside potential, it provides certain synergistic abilities to assist Global in maximizing its current asset values. Aside from the over $4 million of cash and liquid assets, Global has over $3 million in card dispensing equipment, up to a potential of $15 million in future earn-out payments from the sale of its lottery business, and rights it has retained to a proprietary design for the world’s first on-line activated instant lottery ticket. Based on the management breadth, and on the domestic and international relationships of the proposed combined companies, we believe that we will be strategically positioned to pursue the exploitation of our combined target markets.”

About Global ePoint

Global ePoint has been in the process of a major transition over the past two years. The Company is undergoing a series of actions intended to transform itself and move forward with new market opportunities that can better enhance shareholder value. Global ePoint had been engaged in the lottery industry over the past 10 years and was one of the largest providers of vending machines for the sale of instant-winner lottery tickets. On June 1, 2001, all of Global ePoint’s lottery assets were sold to Interlott Technologies, Inc. Along with the cash it received upon the sale, the Company retained rights to contingent earn-out payments and certain other rights to a proprietary design for on-line activated instant lottery tickets. Subsequent to the sale of the lottery assets, the Company has been actively reviewing (i) opportunities that involve the acquisition of or merger with companies that have new business activities with high growth potential, and (ii) marketing plans to maximize the value of the Company’s existing non-lottery related products, which consist primarily of card dispensing equipment.

About McDigit

Headquartered in the City of Industry, California, McDigit was originally organized in November 2002 for the purpose of marketing advanced technology products related to long-range video, audio, and data transmission. Effective January 1, 2003, the shareholder of McDigit contributed 100% of his ownership interest in Best Logic, LLC (“Best Logic”) to McDigit. Best Logic manufactures customized computers and provides comprehensive solutions for industrial personal computer, commercial personal computer and contract manufacturing markets. Currently, substantially all of Best Logic’s revenues have been generated from sales of industrial computer applications to companies that supply x-ray security equipment for the airline industry. Best Logic will continue operations as a wholly owned subsidiary of McDigit. For more information on Best Logic, visit its website at

Also effective January 1, 2003, McDigit obtained sales and marketing rights to a long-range video, audio, and data transmission system, called the “Ranger System.” Effective March 30, 2003, McDigit purchased the remaining rights to the Ranger System from Sequent Technologies, Inc. (“Sequent”). Those rights included provisional patent applications, manufacturing designs, and other intellectual property related to the Ranger System in order to market and deploy the product throughout the world. McDigit plans to continue pursuing the marketing and deployment of the Ranger System under the Sequent brand name. Sequent’s systems 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. For more information on Sequent, visit its website at

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 the proposed merger with McDigit, 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.

For More Information Contact:
Frederick Sandvick, Chief Executive Officer

Global ePoint, Inc.
P.O. Box 3888

La Mesa, CA 91944
Tel: (760) 741-7443 ext. 13
FAX: (760) 741-7711
Email: [email protected]

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Last modified: 08/07/03