Newsletter

March 16, 2005

Volume VI, Issue 24

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To OTC Journal Members:

Comments in the BLOG

Family Room was trying to perk up today on the heels of the Bruce Willis announcement. The stock still doesn't seem to be able to muster the energy to move up significantly, but the company is sure doing its part on the fundamental side. The March 5 BLOG entry on the stock has some fairly good commentary on both the plus and minus side. Check out the comment section and submit your own if you would care to.

To use the BLOG, simply go to the home page at www.otcjournal.com - the BLOG will scroll down automatically on the right side of your screen. The most current journal entries appear in the middle of your screen. Check back frequently for updates particularly when stocks are moving to overbought or oversold levels or in volatile markets.

Global ePoint (NASDAQ: GEPT); Turn Around Time

I have had many emails, comments, and questions on GEPT. We had a great time with that stock at the end of last year, and the stock just died after giving us a four point run (190% return) in a matter of only two weeks. It was a scorcher.

Since that first meteoric rise, the stock has been in an unabated downtrend. It was as if the company crawled into a shell and hid from the public. At the urging of myself and a few others close to the company, the management of GEPT has revamped its thinking on shareholder communication, and has agreed to come back into the spotlight.

I expect GEPT to get active with the investment community and commit some energy to the market side.

The company was out with a very favorable development after the close today, and this could be the catalyst which gets this GEPT moving in the right direction again.

Today, just after the market closed, GEPT announced new contracts totaling $5 million for advanced computer control technology for conventional x-ray security systems used in airports and other venues.

The company is already and acknowledged leader in the field of airport and airline security worldwide. Many large carriers have adopted their cockpit safety video technology.

The company is now moving into screening technology applications, which has substantial expansion potential. Xray screening extends far beyond airports only. Freight coming in through port is poorly screened now. Police stations and Court houses need much better screening capability as we have recently learned from the unfortunate incidents in Atlanta and Minnesota.

The orders totaled $5 million, and this is just one part of their business. Based on the September quarterly revenue number of $5 million, this is a clear indication this company is growing rapidly, and in an area with rapid expansion potential.

Here's a chart of the stock going back to its big run up in December. The stock has been caught in a "regression channel"- this is a very bearish chart and explains why I have been so reluctant to offer commentary or any suggestion of a good entry point.

On the plus side, I believe the stock is so blown out that it now has a good chance of reversing course. This looks like a lot of the charts we saw in mid August when many stocks made their bottoms and turned up for the remainder of the year.

GEPT closed at $3.15 today during the regular session, which keeps the stock pinned well below the upper downtrend line. However, in after hours trading, the stock was trading in the $3.50 range, well above the upper downtrend line. This move is signaling a trend reversal in the stock. When the market opens tomorrow, this stock should have broken out of its regression channel and be headed back up.

In addition, the yellow line on the chart represents the bottom of December's gap. The stock has now successfully filled that gap, which is a pattern many technicians like to see.

It could be deja vu all over again with GEPT. The trend reversal seems in place. I'll try to do a BLOG posting in the morning if the stock is trading too wildly.

Please share your comments or questions at the next BLOG posting.

Here is the complete text of today's release for your review:

Press Release Source: Global ePoint, Inc.

Global ePoint Extends Leadership in Burgeoning X-Ray Scanning Technology with $5 Million in New Purchase Orders

Wednesday March 16, 4:01 pm ET

Largest U.S. Makers of X-Ray Security Equipment Award Contracts as Industry Expands Beyond Airports to New Markets

CITY OF INDUSTRY, Calif.--(BUSINESS WIRE)--March 16, 2005--Global ePoint, Inc. (Nasdaq:GEPT - News), an innovator of homeland security solutions in aviation, law enforcement and high-volume contract manufacturing, has announced new contracts totaling $5 million for advanced computer control technology for conventional x-ray security systems used in airports and other venues. The announcement was made by Global ePoint CEO Toresa Lou.

The newly-announced $5 million in purchase orders represents orders for computer control equipment from the two largest U.S. makers of conventional x-ray security scanning devices. Global ePoint, through its Contract Manufacturing division, is a leading provider of the computer technology used to control x-ray scanning equipment in airports and other public and private settings. The Company provides the majority of all such advanced computer technology.

The sales reflect recent growth in the x-ray scanning security industry, which has lately extended beyond its traditional foothold in airport security. Prior to the terrorist attacks of 9/11, conventional x-ray scanning security equipment was used primarily at airports. Since 9/11, x-ray security measures have expanded into courtrooms, prisons, schools, stadiums, cruise ships, office buildings, ports and border crossings.

"The x-ray security equipment industry has undergone strong growth in recent years. As the leading maker of computer control systems for these devices, Global ePoint has positioned itself to grow in concert with that worldwide demand," said Ms. Lou. "X-ray security scanning systems have long been one of the first lines of defense in security for the air transportation industry, but the post-9/11 environment has brought about substantial new growth in the airport-based portion of the business. Now, these same concerns about public safety and the threat of terrorism have opened up entirely new markets for Global ePoint's x-ray control computer technology and homeland security solutions."

Global ePoint is scheduled to fulfill the new orders throughout 2005. The $5 million total orders were placed by the industry's largest manufacturers of airport x-ray security equipment.

Global ePoint offers a range of advanced homeland security solutions and electronics products through its three operating divisions. The Company's Aviation division is a leading worldwide provider of video-based cockpit security and passenger seating electronics products for the air transportation industry. Global ePoint's Digital Technology division offers a range of next-generation digital video-based surveillance equipment for law enforcement and the commercial and industrial sectors.

About Global ePoint, Inc.

Global ePoint's growth catalyst, through its wholly-owned subsidiaries, is the design, manufacturing, sales and distribution of digital video surveillance systems for the law enforcement, military, aviation and homeland security markets. On the cutting edge of digital technology and seeking to expand its product line, Global ePoint is developing new compression technologies and next-generation, secure network digital video systems and servers for a wide range of new markets, concentrating primarily on security and homeland defense applications. As a solid recurring revenue stream, the Company also manufactures customized computing systems for industrial, business and consumer markets, as well as other specialized electronic products and systems. Complete vertical integration -- from design and manufacturing to sales and distribution -- allows the Company to capture efficiencies and maintain cost advantages in these growing markets, particularly homeland security. For more information, please visit http://www.globalepoint.com. For more investor-specific information, please visit http://www.trilogy-capital.com.

Cautionary Statement

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the company's current expectations, estimates and projections, management's beliefs and numerous assumptions, all of which are subject to change. These forward-looking statements are not guarantees of future results and are subject to numerous risks and uncertainties. Our actual results could differ materially and adversely from those expressed in any forward-looking statement. For example, deliveries may be delayed or installations canceled. Regulations may change and negatively affect demand for our products. There can be no assurance that the company's subsidiaries and/or divisions will be able to achieve growth of sales or market share. The forward-looking statements in this release speak only as of the date of this release. We undertake no obligation to revise or update publicly any forward-looking statement for any reason. These and other risk factors are detailed in our periodic filings with the Securities and Exchange Commission.
Contact:

     Global ePoint
     Toresa Lou, 909-869-1688
     tlou@globalepoint.com
     or
     Investor Relations
     Trilogy Capital Partners, Inc.
     Paul Karon, 800-342-1467
     paul@trilogy-capital.com

Source: Global ePoint, Inc.

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