SAN MARCOS, Calif., July 29, 2003 (PRIMEZONE) -- Global ePoint, Inc. (the Company) (Nasdaq:GEPT) today announced that in connection with its proposed merger, its shareholders approved the Reorganization and Stock Purchase Agreement with McDigit, Inc. At the meeting, the shareholders also approved an increase in the number of authorized shares of Common Stock to 50,000,000 and elected, effective upon the closing of the merger, eight (8) additional members to the Board of Directors. The Company anticipates the closing date of the merger to be within the next ten (10) days.
Frederick Sandvick, Chief Executive Officer of Global ePoint, Inc., stated: "We are pleased our shareholders voted in favor of the merger and related matters. We have worked tirelessly over the last 10 months to consummate the merger. We believe the merger will be of tremendous benefit to both shareholder groups and are very excited about the future of the merged companies."
Toresa Lou, Chief Executive Officer of McDigit, Inc., was quoted as saying, "Now that the Global shareholders have approved the transaction, we look forward to finalizing the merger, focusing on our business strategies, and maximizing shareholder values."
About Global ePoint
Global ePoint has been in the process of a major transition over the past two years. The Company is undergoing a series of actions intended to transform itself and move forward with new market opportunities that can better enhance shareholder value. Global ePoint had been engaged in the lottery industry over the past 10 years and was one of the largest providers of vending machines for the sale of instant-winner lottery tickets. On June 1, 2001, all of Global ePoint's lottery assets were sold to Interlott Technologies, Inc. Along with the cash it received upon the sale, the Company retained rights to contingent earn-out payments and certain other rights to a proprietary design for on-line activated instant lottery tickets. Subsequent to the sale of the lottery assets, the Company has been actively reviewing (i) opportunities that involve the acquisition of or merger with companies that have new business activities with high growth potential, and (ii) marketing plans to maximize the value of the Company's existing non-lottery related products.
About McDigit
Headquartered in the City of Industry, California, McDigit was originally organized in November 2002 for the purpose of marketing advanced technology products related to long-range video, audio, and data transmission. Effective January 1, 2003, the shareholder of McDigit contributed 100% of his ownership interest in Best Logic, LLC ("Best Logic") to McDigit. Best Logic manufactures customized computers and provides comprehensive solutions for industrial personal computer, commercial personal computer and contract manufacturing markets. Currently, substantially all of Best Logic's revenues have been generated from sales of industrial computer applications to companies that supply x-ray security equipment for the airline industry. Best Logic is now expanding into other markets, such as medical applications.
Also effective January 1, 2003, McDigit obtained sales and marketing rights to a long-range video, audio, and data transmission system, called the "Raidius System," including the "Ranger" and "Paladin" products. Effective March 30, 2003, McDigit purchased the remaining rights to the Raidius System from Sequent Technologies, Inc. ("Sequent"). Those rights included provisional patent applications, manufacturing designs, and other intellectual property related to the Raidius System in order to market and deploy the product throughout the world. McDigit continues pursuing the marketing and deployment of the Raidius System under the Sequent brand name. Sequent's systems 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. For more information on Sequent, visit its website at www.sequentusa.com.
Any forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation 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 satisfaction of additional closing conditions in order to successfully complete the proposed merger with McDigit, 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.