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CITY
OF INDUSTRY, Calif., Aug. 18, 2003 (PRIMEZONE) -- Global ePoint, Inc.
(the ``Company'') (NasdaqSC:GEPT - News) today announced that its recently
acquired McDigit division (``McDigit''), which manufactures customized
computers and provides comprehensive solutions for industrial personal
computer, commercial personal computer and contract manufacturing markets,
has signed two new corporate customers. Under the arrangements with the
new customers, McDigit will be providing industrial personal computers
to the customers for use with the customers' advanced security technology.
The relationships are expected to be ongoing, and the customers have initially
ordered approximately $500,000 of industrial personal computers to be
fully delivered in the 2003 third quarter. Although there can be no certainties
to continuing orders, it is anticipated that the customers could order
$400,000 to $800,000 of industrial personal computers per month once the
initial orders are delivered, potentially providing approximately $5 million
to $10 million of additional annual revenue over the next year.
``We are pleased to add these new customers to our expanding customer
base,'' said Toresa Lou, Chief Executive Officer of McDigit. ``Although
McDigit only began operations in 2001, within just two years it now provides
approximately 80% of the industrial personal computers used in X-ray scanning
equipment in U.S. domestic airports. With that as our base, we are now
expanding into other security surveillance equipment markets as well as
into non-security markets, such as medical applications. As a result of
our expansion, we anticipate our existing core business to show excellent
revenue growth during the third and fourth quarters of this year.''
Ms. Lou further commented, ``We also anticipate continuing McDigit's market
expansion over the next two quarters. McDigit has the infrastructure in
place to dramatically increase production and handle all anticipated expansion
plans over the near term. 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 had been undergoing a series of actions intended
to diversify its activities and enable it to move forward with new market
opportunities that could better enhance shareholder value. The Company
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 the Company's lottery assets and core business were
sold as the first major step in its transition program. On August 8, 2003,
in order for the Company to enter into a larger more diversified target
market and proceed with the second major step in the Company's transition
program, the Company completed a merger with McDigit, Inc. (For more information
relating to the merger, see the Company's definitive proxy statement filed
July 1, 2003.)
As a result of the merger, the Company now has two main operating divisions.
One operating division manufactures customized computers and provides
comprehensive solutions for industrial personal computer, commercial personal
computer and contract manufacturing markets. This division currently provides
approximately 80% of the industrial computers to companies that supply
x-ray security equipment for the airline industry. The Company is now
expanding its manufacturing into other markets, such as medical applications.
The Company's other operating division, Sequent Technologies, is beginning
to establish initial market acceptance of its long-range video, audio
and data transmission system, called the ``RAIDIUS System,'' including
the ``Ranger'' and ``Paladin'' products. Sequent's systems are designed
to 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.
Any forward-looking statements in this release are made pursuant to the
``safe harbor'' provisions of the Private Securities Litigation Reform
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]
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