SAN MARCOS, Calif., June 4, 2001 (PRIMEZONE) -- On-Point Technology (the Company) (Nasdaq:ONPT) today announced that it has completed the sale of those assets used in its existing lottery business, relating to the manufacture, sale, lease and service of instant lottery ticket vending machines to Interlott Technologies, Inc. (Interlott) (AMEX:ILI). The agreement for the sale was previously approved by the Company's shareholders on May 18, 2001.
The Company also announced that it has filed to change its name to Global ePoint, Inc. The name change is expected to become effective with the Nasdaq Stock Market on the open of business on June 5, 2001 with the change in symbol from ONPT to GEPT.
Frederick Sandvick, the Company's Chairman and Chief Executive Officer, commented, "As previously reported, we have set forth on a series of planned actions intended to transform the Company and to strategically move forward with new market opportunities that can better enhance shareholder value. We are pleased to have completed our first major step in this transformation process."
"The arrangement for the sale of our lottery assets to Interlott not only provides us the liquidity and upfront cash we require to proceed with our strategic initiatives, it provides us opportunities for continuing revenue streams from those assets. In addition to the approximate $13 million received upon closing, the arrangement with Interlott provides up to $15 million in deferred and earn-out payments over the next five years if our contractual agreements and technologies transferred to Interlott generate additional profits. In addition, our arrangement with Interlott provides for a separate on-line technology agreement to market a proprietary design for the world's first on-line activated instant lottery ticket. We continue to retain certain gross profit and royalty rights to this intellectual property. We believe the sale of our lottery assets and the strategic on-line technology agreement between the two companies will not only be beneficial to the shareholders of both companies, but to the entire lottery industry."
"As a result of the sale, we are now well positioned to proceed with our strategic initiatives. In that connection, we are changing the name of the Company to Global ePoint, Inc., as approved by shareholders. The name change is designed to better identify our corporate name with our strategic initiatives. We are currently reviewing opportunities that involve the operation of on-line lottery operations, and the development of electronic solutions to high-volume, cash-oriented transactions, such as prepaid telephony, bill payments, prepaid debt processes, consumer entertainment and public access mediums. However, we plan to review a variety of other new market opportunities over the coming months. Our goal with respect to all these market opportunities is to identify which opportunities best leverage our management expertise, technological property, and international relationships, while maximizing our abilities to enhance shareholder value. We look forward to reporting our progress as we move forward with our plans."
About the Company
The Company has provided effective technologies for transaction automation since its formation in 1991. The Company pioneered the development of the instant ticket vending machine for lotteries worldwide and has designed sold, leased and serviced high-security vending machines both domestically and internationally. In June 2001, the Company sold its assets used in its existing lottery business, relating to the manufacture, sale, lease and service of instant lottery ticket vending machines. The Company is now proceeding with plans to enter into new market opportunities. The Company has begun to explore the development of automated electronic solutions for high-volume, cash-oriented transactions and is also in the process of reviewing opportunities for on-line and internet lotteries.
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 successful completion of proposed equity raises, which may be necessary for the Company to implement its plans to develop new market opportunities, continued acceptance of the Company's products and services in the marketplace, competitive factors, new products and technological changes, the Company's successful entry into new markets, the Company's ability to obtain the rights to on-line and internet lotteries and its ability to generate income from such operations, dependence upon third-party vendors, a limited number of customers, political and other uncertainties related to customer purchases, and other risks detailed in the Company's periodic filings with the Securities and Exchange Commission.