CITY OF INDUSTRY, Calif. — (BUSINESS WIRE) — June 24, 2004 — Global ePoint, Inc. (NASDAQ: GEPT ), a leading provider of digital video surveillance systems, today announced its Perpetual Digital division has completed initial delivery of Digital Video Recorder (DVR) Surveillance Systems – with point–of–sale interface – to Ace Hardware.

Ace Hardware is a global leader in the hardware retail business with 4,800 stores worldwide. The initial delivery for select stores launches Perpetual Digital’s 8 and 16 channel DVR systems through major CCTV Distributor Richardson Electronics.

Perpetual Digital division Vice President Greg Edelman commented, "Our point–of–sale interface technology integrates and provides both camera surveillance and point–of–sale transactional management solutions for Ace’s retail stores. Today, this level of integration is becoming essential in the commercial and retail markets as retailers look to maintain audit trails for fraud prevention. Our system provides companies the ability to record and archive high resolution images embedded with all transaction detail spanning many months at a time. This capability has proven significant when researching fraud or irregularities in day–to–day revenues."

Key benefits of DVRs with point of sale interface are that it allows the user to quickly search for transaction information – such as search parameters for time, date, camera, merchandise, credit card number, and cash amount of sale. This can be a valuable tool for financial institutions as well as retail, as ATM and check fraud (like merchandise theft) cost industries millions of dollars in revenue loss annually. In most cases, Perpetual Digital technology puts a stop to fraud and theft by providing customers with quick and dependable results.

Mr. Edelman continued, "The growing need for point–of–sale informational recording and transactional retrieval is being recognized through major retail chains like Ace Hardware. Perpetual Digital has captured the industry’s attention and it is now firmly positioned as the acknowledged leader in Digital Surveillance and Text Insertion Archiving."

Global ePoint Chief Executive, Toresa Lou, commented, "On a broader scale, the success of the Perpetual Digital division underscores the synergy generated through vertical integration with our other divisions. Perpetual Digital allows Global ePoint to deliver core secured network digital video technology, with a variety of applications, to implement end–to–end solutions efficiently for many vertical markets worldwide."

The Perpetual Digital division is a solutions provider to the commercial and industrial markets providing a full line of advanced Digital Video Recorders (DVR) that fully integrate with Access Control, Alarm, Bio Metrics and Point of Sale/ATM systems. Perpetual Digital is deeply involved in the research and development of next generation of CCTV digital security products. Perpetualís Digital Video System solutions are installed in major financial institutions, Parcel Carrier Hubs, Major Retail chains, Government and Refinery Institutions. Perpetual Digital also plays a key role in the security industry as a total solutions provider for Digital Video Security.

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 www.globalepoint.com.

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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