Press Release  4/2/03
GLOBAL EPOINT ANNOUNCES DEFINITIVE AGREEMENT  TO MERGE WITH HOMELAND SECURITY COMPANY
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 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.”