CITY OF INDUSTRY, Calif., Aug. 18, 2003 (PRIMEZONE) -- Global ePoint, Inc. (the "Company") (Nasdaq:GEPT) today announced that its recently acquired McDigit division ("McDigit"), which manufactures customized computers and provides comprehensive solutions for industrial personal computer, commercial personal computer and contract manufacturing markets, has signed two new corporate customers. Under the arrangements with the new customers, McDigit will be providing industrial personal computers to the customers for use with the customers' advanced security technology. The relationships are expected to be ongoing, and the customers have initially ordered approximately $500,000 of industrial personal computers to be fully delivered in the 2003 third quarter. Although there can be no certainties to continuing orders, it is anticipated that the customers could order $400,000 to $800,000 of industrial personal computers per month once the initial orders are delivered, potentially providing approximately $5 million to $10 million of additional annual revenue over the next year.
"We are pleased to add these new customers to our expanding customer base," said Toresa Lou, Chief Executive Officer of McDigit. "Although McDigit only began operations in 2001, within just two years it now provides approximately 80% of the industrial personal computers used in X-ray scanning equipment in U.S. domestic airports. With that as our base, we are now expanding into other security surveillance equipment markets as well as into non-security markets, such as medical applications. As a result of our expansion, we anticipate our existing core business to show excellent revenue growth during the third and fourth quarters of this year."
Ms. Lou further commented, "We also anticipate continuing McDigit's market expansion over the next two quarters. McDigit has the infrastructure in place to dramatically increase production and handle all anticipated expansion plans over the near term. Over the next few months we will also be working on integrating all of Global ePoint's business opportunities into a more unified strategic plan designed to further enhance shareholder value."
About Global ePoint
Global ePoint has been in the process of a major transition over the past two years. The Company had been undergoing a series of actions intended to diversify its activities and enable it to move forward with new market opportunities that could better enhance shareholder value. The Company had been engaged in the lottery industry and was one of the largest providers of vending machines for the sale of instant-winner lottery tickets. On June 1, 2001, all of the Company's lottery assets and core business were sold as the first major step in its transition program. On August 8, 2003, in order for the Company to enter into a larger more diversified target market and proceed with the second major step in the Company's transition program, the Company completed a merger with McDigit, Inc. (For more information relating to the merger, see the Company's definitive proxy statement filed July 1, 2003.)
As a result of the merger, the Company now has two main operating divisions. One operating division manufactures customized computers and provides comprehensive solutions for industrial personal computer, commercial personal computer and contract manufacturing markets. This division currently provides approximately 80% of the industrial computers to companies that supply x-ray security equipment for the airline industry. The Company is now expanding its manufacturing into other markets, such as medical applications. The Company's other operating division, Sequent Technologies, is beginning to establish initial market acceptance of its long-range video, audio and data transmission system, called the "RAIDIUS System," including the "Ranger" and "Paladin" products. Sequent's systems are designed to 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.
Any forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform 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 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.