Global ePoint Launches Distribution Channel for Perpetual Digital Brand Advanced Security Products

Marketing Strategy Brings Company’s Video–Based Security and Surveillance Product Line to North American Marketplace

CITY OF INDUSTRY, Calif. — (BUSINESS WIRE) — Jan. 18, 2005 — Global ePoint, Inc. (Nasdaq:GEPT – News), an innovator in homeland security solutions in aviation, law enforcement and high–volume contract manufacturing, announced today that the Company’s Digital Technology Division has successfully launched the marketing phase of its Perpetual Digital video–based security and surveillance product line with the signing of seven additional wholesale security distributors throughout the United States. The announcement was made by Global ePoint CEO Toresa Lou.

"This is a fantastic start for 2005 and provides excellent momentum for the initial phase of our marketing plan," said Joe Cappelletti, Executive Vice President of the Digital Technology Division. "Establishment of these distribution agreements is a critical step in executing our growth strategy to build a strong network of wholesale security distributors." The new distribution centers are located throughout New York, Florida, New Jersey, Maryland, Louisiana and California.

Perpetual Digital’s security products have already proven their success in the marketplace through a distribution agreement that predates Global ePoint’s acquisition of Perpetual in April of 2004. Perpetual is providing digital security products through a well established distributor in the security market under an OEM manufacturing agreement, where the products are sold under distributor's label. Global ePoint believes its new distribution strategy under its own Perpetual Digital branding will result in significant increases in sales and revenue.

The Perpetual Digital product line provides a complete range of next–generation digital video security and surveillance systems for the wholesale security distribution channel. This announcement marks the initial marketing effort in the independent wholesale security channel and increases the total number of national distributors to eight, with over thirty distribution centers located throughout North America.

These wholesale security distributors will market Global ePoint’s Perpetual product line directly to the professional security industry. "This is our preferred sales channel, but it is just one of many channels that we are targeting," said Mr. Cappelletti.

The newly–launched distribution strategy is being directed by Mr. Cappelletti, a security industry veteran who is returning to the industry after a two–year absence, upon the expiration of a non–compete agreement with Ademco Distribution, Inc. (ADI), a division of Honeywell, Inc. Mr. Cappelletti was part of the team that started ADI; during his 24–year career he helped build ADI into one of North America's largest wholesale distributors, with over $1 billion in revenues. Since joining Global ePoint in August, 2004, as head of the Digital Technology Division, Mr. Cappelletti has focused on the creation of a fully staffed professional sales and marketing unit. "We have built a solid team of experienced professionals and industry veterans that have the market background and contacts that has given us this great start," he said.

The Perpetual Digital products deliver a robust set of software features and are specifically designed to be user friendly and provide the flexibility to cover the needs of both the dealer–integrator and the end user. "These products can be easily integrated with other important security solutions, such as access control, alarm systems and emergency monitoring software," commented Greg Edelman, vice president of Business Development for Global ePoint’s Digital Technology Division.

Global ePoint’s newly–launched distribution channel represents a major milestone in the Company’s mission to establish the Perpetual brand as the industry standard for digital and video–based security surveillance solutions for the commercial and residential security markets. "The successful start of national distribution of the Perpetual Digital solutions not only creates new avenues for future sales of other Global ePoint product lines in the digital surveillance security marketplace, but also provides a strong indication of our products’ acceptance in the industry," said Ms. Lou. "We believe this positions Global ePoint favorably for expanded penetration into the large and vital marketplace of the wholesale security channel."

Global ePoint’s Digital Technology Division develops and provides a range of next–generation digital video and audio recording solutions for applications in the security industry. Currently consisting of Perpetual Digital and Sequent Technology product lines, the Digital division’s products are making analog tape–based systems obsolete by providing digital technology solutions to enable the real–time capture, playback, communication, computer–based archive, search and recall of high–quality digital video. Perpetual Digital products provide a range of security and surveillance capabilities, including point–of–sale digital video transaction recording equipment and a range of other commercial security solutions for professional alarm providers and integrators. Sequent Technologies products provide proprietary digital video systems for a range of law enforcement, defense, access security and public safety markets. Its products enable the video transmission, indexing and archiving systems from anywhere using existing wireless cellular networks.

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 For more investor–specific information, please visit

Cautionary Statement

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]