Global ePoint Completes $ 2.5 Million Financing

Funds to Accelerate Development of Company’s Homeland Security Products and Technologies

CITY OF INDUSTRY, Calif. — (BUSINESS WIRE) — Jan. 5, 2005 — Global ePoint, Inc. (Nasdaq:GEPT – News), an innovator in homeland security solutions in aviation, law enforcement and high–volume contract manufacturing, has closed a $ 2.5 million private placement sale of common shares, investment rights and warrants to institutional investors. The Company intends to use the net proceeds from the transaction for general corporate purposes, including investments in technology development and marketing initiatives and working capital requirements needs for its digital surveillance divisions. Toresa Lou, Chief Executive Officer of Global ePoint, made announcement.

"As the homeland security marketplace expands and adopts new technologies and next–generation products, Global ePoint is taking steps to remain at the forefront of technology and product innovation," said Ms. Lou. "We will use these new financial resources to ensure that the pace of development within Global ePoint continues to provide the sort of next–generation homeland security solutions that our Company is known for. The world’s security requirements continue to grow more complex, and our first–responders and citizens must be supported through technology and services provided by private industry."

Global ePoint’s next–generation homeland security technologies include several proprietary technology solutions employing video surveillance, wireless communication and other services and products for the aviation security, law enforcement, and commercial security and surveillance markets.

H.C. Wainwright and Company Inc. acted as placement agent for the $2.5 million transaction, which was announced late in December 2004. Pursuant to the definitive Securities Purchase Agreement, the Company sold 500,000 shares of its common stock at a price of $5.00 per share. The Company also granted to the investors warrants to purchase 125,000 common shares over a three year period at an exercise price of $6.91 per share as well as the right to purchase an additional 400,000 common shares at $5.00 per share during the 90 trading day period following the effectiveness of a selling shareholder registration statement to be filed by the Company with the SEC for purposes of registering the resale of the investors’ common shares, including the common shares insurable upon exercise of the investment rights and warrants.

Neither the exercise price of the investment right or warrants are subject to adjustment, except for standard anti–dilution relating to stock splits, combinations and the like.

The shares were sold in a private transaction under Regulation D of the Securities Act of 1933. Global ePoint is obligated to register the share for resale on a registration statement within 30 days of close.

Global ePoint’s growth catalyst, through its wholly-owned subsidiaries, is the design, manufacturing, sales and distribution of digital video surveillance systems for the law enforcement, military, aviation and homeland security markets. On the cutting edge of digital technology and seeking to expand its product line, Global ePoint is developing new compression technologies and next–generation, secure network digital video systems and servers for a wide range of new markets, concentrating primarily on security and homeland defense applications. As a solid recurring revenue stream, the Company also manufactures customized computing systems for industrial, business and consumer markets, as well as other specialized electronic products and systems. Complete vertical integration — from design and manufacturing to sales and distribution — allows the Company to capture efficiencies and maintain cost advantages in these growing markets, particularly homeland security. For more information, please visit

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 subsidiaries and/or divisions 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.

Global ePoint, Inc.
John Price, 909.839.1700
[email protected]