Potential for New Technology and Products

City of Industry, Calif. — January 22, 2004 — Global ePoint, Inc. (Company) (Nasdaq: GEPT) has outlined a new business and growth strategy, which includes plans to expand into new technologies, products, and markets through its existing operations and potential strategic alliances or acquisitions.

With the Company’s current digital video and manufacturing operations as a base, the Company intends to enter new markets and develop new compression and chipset technology for next–generation digital video and Internet protocol (IP) applications for commercial, consumer, and other security and surveillance needs. Of note are plans to develop and market next–generation digital video recording systems incorporating new compression technology.

The Company’s strategy also includes a potential acquisition of a related–party global sourcing and sales and marketing company, with which Global currently has ongoing transactions. To support planned technology and product development, the Company intends to add to its domestic R&D team and form an offshore support team for cost–effectiveness.

Global ePoint Chief Executive Toresa Lou commented: "Underlying this strategy is the potential for production and operational synergies between Global’s existing and planned divisions and a more vertically–integrated business structure. Management feels there are significant advantages to be gained from internalizing and integrating operations from R&D to product design to parts and components sourcing to manufacturing, and then to distribution and sales.

"Clearly, there is much to be accomplished, if we are to achieve our primary objectives of growing sales and revenues and realizing greater cost efficiencies for profit growth," Lou added. "However, we feel this new strategy is meaningful for Global’s shareholders, since it provides a cohesive business plan and offers insight into the reasons for our positive outlook for the Company. To effectively implement several steps involved in this strategy, we are also considering various financing alternatives, including an offering of equity or debt securities."

Global ePoint is a provider of computers, computing solutions and digital video, audio and data transmission and recording products. The Company’s primary operations are through two divisions: Digital Technology and Contract Manufacturing. The Digital Technology division designs and markets digital video surveillance systems for law enforcement, military and homeland security markets. The Contract Manufacturing division manufacturers customized computing systems for industrial, business and consumer markets and other specialized electronic products and systems. Global ePoint’s growth strategy includes developing new compression technologies and next-generation secure network digital video systems and servers for a wide range of new markets and applications. For more information go to

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward–looking statements are based on the company’s current expectations, estimates and projections, management’s beliefs and numerous assumptions, all of which are subject to change. These forward-looking statements are not guarantees of future results and are subject to numerous risks and uncertainties. Our actual results could differ materially and adversely from those expressed in any forward-looking statement. For example, deliveries may be delayed or installations canceled. Regulations may change and negatively affect demand for our products. There can be no assurance that the company’s AirWorks division will be able to achieve growth of sales or market share. The forward–looking statements in this release speak only as of the date of this release. We undertake no obligation to revise or update publicly any forward–looking statement for any reason. These and other risk factors are detailed in our periodic filings with the Securities and Exchange Commission.

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