CITY OF INDUSTRY, Calif., August 15, 2003 (PRIMEZONE) -- Global ePoint, Inc. (the "Company") (Nasdaq:GEPT) reported that it has been notified by Nasdaq Staff that, based on the Staff's review of the recent merger between the Company and McDigit, Inc., a change of control occurred with the Company upon completion of the merger on August 8, 2003. As a result, the Company received notification on August 11, 2003 that the Staff has determined that in accordance with Nasdaq Marketplace Rule 4330(f), the Company will be required to submit an initial listing application and meet all initial inclusion criteria on The Nasdaq Small Cap Market in order to remain listed on that market. The Company believes it met all of the initial inclusion criteria on August 8, 2003, with the exception of the $4.00 minimum requirement. On August 8, 2003, the Company's closing bid price was $3.44. As such, the Staff determined that the Company's securities are subject to delisting from The Nasdaq Small Cap Market. The Company is currently preparing to request a hearing before a Nasdaq Listing Qualifications Panel to review the Staff's determination and the matter will be stayed until the Panel has had an opportunity to review it. There can be no assurance the Panel will grant the Company's request for continued listing. If the Company does not continue to list on The Nasdaq Small Cap Market, it will immediately be eligible for quotation on the OTC Bulletin Board.
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 also 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 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.