SAN MARCOS, CALIFORNIA, August 11, 2003---GLOBAL EPOINT, INC. (the Company) (NASDAQ Symbol: GEPT) today announced that it has completed a merger with McDigit, Inc. (“McDigit”), which was approved by its shareholders on July 28, 2003. McDigit, through its manufacturing 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.

Frederick Sandvick, Chief Executive Officer of Global ePoint, Inc., commented,``We are very pleased to have completed what we believe can be a very synergistic and growth-oriented merger for Global. McDigit will 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 completion of this merger was the second major step. We now look forward to the full implementation of the strategies set in motion by McDigit as we enter into exciting new market opportunities.''
Toresa Lou, Chief Executive Officer of McDigit, Inc., further commented “We are pleased the merger has now been completed and are excited about the future of the combined companies. We anticipate our existing core business to show excellent revenue growth during the third and fourth quarters of this year and we look forward to continuing our marketing efforts of Sequent Technologies as it readies its products for launch into the multi-billion dollar video surveillance security market. Over the next few months we will also be working on integrating all of Global ePoint’s business opportunities into a more unified strategic plan designed to further enhance shareholder value.”

About Global ePoint

Global ePoint has been in the process of a major transition over the past two years. The Company has been undergoing a series of actions intended to enable it into being able to move forward with new market opportunities that can better enhance shareholder value. Global ePoint had been engaged in the lottery industry 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 and core business were sold and, along with the cash it received upon the sale, the Company retained rights to contingent earn-out payments, certain other rights to a proprietary design for on-line activated instant lottery tickets, and other non-lottery related assets. On August 8, 2003, the Company completed a merger with McDigit, Inc. As a result of the merger, McDigit’s primary business will now become the Company’s primary business.

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, McDigit acquired 100% of the ownership interest in its manufacturing subsidiary, which manufactures customized computers and provides comprehensive solutions for industrial personal computer, commercial personal computer and contract manufacturing markets. Currently, substantially all of McDigit’s revenues have been generated from sales of industrial computer applications to companies that supply x-ray security equipment for the airline industry. McDigit is now expanding its manufacturing into other markets, such as medical applications.

Also effective January 1, 2003, McDigit obtained sales and marketing rights to a long-range video, audio and data transmission system, called the "Raidius System," including the "Ranger" and "Paladin" products. McDigit subsequently purchased the remaining rights to the Raidius System from Sequent Technologies, Inc. ("Sequent"). Those rights included provisional patent applications, manufacturing designs, and other intellectual property related to the Raidius System in order to market and deploy the product throughout the world. McDigit continues pursuing the marketing and deployment of the Raidius 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 www.sequentusa.com.
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 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.



Global ePoint, Inc.
P.O. Box 3888
La Mesa, CA 91944
Phone (760) 741-7443 ext. 13
Fax (760) 741-7711
Email: [email protected]