CITY OF INDUSTRY, Calif., April 2, 2008 (PRIME NEWSWIRE) -- Global ePoint, Inc. (Pink Sheets:GEPT), a leading manufacturer of security technologies for the aviation, law enforcement, commercial and industrial markets, today announced its aviation division, Global AirWorks, has terminated a proposed joint venture.
On December 6, 2007, Global ePoint (GEPT) entered into a non-binding letter of intent with a certain aviation company with annual revenue of approximately $50 million. Pursuant to the letter of intent, GEPT proposed to enter into a joint venture.
On December 11, 2007, Global ePoint, Inc. filed an 8-K report with the Securities and Exchange Commission, regarding a possible joint venture between a company in the aerospace industry and its aviation services company, Global AirWorks, Inc.
Also pursuant to the letter of intent, GEPT agreed to a period of exclusivity, to expire March 5, 2008, to allow for adequate time to complete due diligence for both parties.
Due diligence has now been completed and on March 28, 2008, in compliance with the Securities and Exchange Commission's 8-K, Item 1.02 requirements, the Material Definitive Agreement, as briefly described in the preceding paragraphs, has been terminated.
About Global ePoint's Aviation Division
The Company's Aviation division contains Global AirWorks, whose primary communications and security products include the Cockpit Door Surveillance System (CDSS), a digital electronic "flight bag" of all flight and on-board manuals and records for pilots, In Flight Entertainment products and Laptop Computer Power System for passengers and flight crews. AirWorks customers include airline major OEMs, such as AT&T Aviation, BAE Systems, L3 Communications, and Rockwell Collins; all major U.S. airlines; and all major international carriers, including ATA, Air China, Bombardier, Finnair, Varig, KLM, Lufthansa, and Cathay Pacific. AirWorks holds more than 40 supplemental type certificates (STC) certifying AirWorks as a Federal Aviation Administration (FAA)-approved manufacturer and installer for a range of interior equipment and systems for a variety of commercial aircraft flying worldwide. For more information, visit www.airworksinc.com .
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, the Company's plans to (i) introduce cost cutting initiatives, (ii) conduct structural changes in its Global AirWorks Aviation division, (iii) conduct significant changes in the Company's executive management team, and (iv) obtain economic benefits from the aforementioned actions. Such forward-looking statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, (v) whether and when government mandates are implemented and individual decisions on the part of the world's airlines to install CDSS systems, (vi) whether significant cost savings will result from the planned strategic initiatives and other changes and whether those cost savings will accelerate Global ePoint's progress toward profitability, and (vii) the Company's ability to obtain additional working capital as and when needed. For a discussion of these and other factors that may cause actual events or results to differ from those projected, please refer to the Company's most recent annual report on Form 10-KSB and quarterly reports on Form 10-QSB, as well as other subsequent filings with the Securities and Exchange Commission. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update or revise such statements to reflect new circumstances or unanticipated events as they occur.