En Pointe Technologies, Inc. Reports Financial Results for the Fourth Quarter and Fiscal Year Ended September 30, 2008

LOS ANGELES, Dec. 15 /PRNewswire-FirstCall/ — En Pointe Technologies,
Inc. (Nasdaq: ENPT): a leading national provider of business-to-business
information technology products, services and solutions, today announced
consolidated results for its fourth quarter and fiscal year ended September
30, 2008. Total net sales in the fourth quarter of fiscal 2008 decreased
35.0% to $63.1 million when compared to the $97.0 million reported for the
fourth quarter of fiscal 2007. For the year ended September 30, 2008, total
net sales decreased $46.7 million, or 13.4%, to $300.5 million from
$347.1 million reported in the prior fiscal year. The net sales decline was
from a combination of a cutback in major customer’s orders, loss of some major
customers affected by the instability in the financial industry and the sale
of a majority interest in the Company’s services business in July 2008. En
Pointe’s gross profits increased by $0.2 million to $43.8 million for the
fiscal year 2008 as compared to $43.6 million reported in fiscal year 2007.

En Pointe incurred an operating loss in the fourth quarter of fiscal 2008
of $6.9 million as compared with $0.4 million operating income in the fourth
quarter of fiscal 2007. The decrease was due chiefly to increases in the
provision for bad debt expense and added compensation costs in connection with
the sale of a majority interest in the services business.

As previously announced En Pointe through its wholly-owned subsidiary, En
Pointe Technologies Sales, Inc. (“SalesCo”) sold an 80.5% interest in its
information technology services business for a combination of stock and cash
with a total face value at closing of approximately $24.0 million. The
securities portion of the consideration has been adjusted down by $6.0 million
for the restricted nature of the stock and the decline in value between July
and September 2008, which has resulted in an adjusted gain on the sale of
$17.4 million after related costs of $0.6 million have been considered. Of
the $17.4 million gain, $15.4 million has been recognized in the September
2008 quarter with the balance of $2.0 million deferred until collected.

Other income amounted to $14.7 million for the fiscal year 2008, which was
principally from the $15.4 million gain on the sale of the majority interest
in the services business reduced by other non-operating losses.

As a result of the gain on the sale of the majority interest in the
services business, net income for the fourth quarter of fiscal 2008 increased
by $5.4 million to $6.1 million, or $0.86 per basic and $0.85 per diluted
share, as compared with a net income of $0.7 million, or $0.10 per basic and
diluted share, reported in the fourth quarter of fiscal 2007. For the year
ended September 30, 2008, En Pointe reported net income of $3.6 million, or
$0.51 per basic and $0.50 per diluted share, as compared with $1.6 million, or
$0.23 per basic and $0.22 per diluted share, reported in fiscal 2007.

Bob Din, CEO of En Pointe said, “The electronics market is becoming
increasingly challenging due to difficult economic conditions, financial
market upheaval and tightening credit availability for our customers.” Mr.
Din added, “We are mindful as we go forward that the U.S. economy will
continue to be a difficult for the sale of information technology products but
are committed to meeting the challenges of the future, as we always have
been.”

Operating Highlights

Gross profits for fiscal year 2008 increased $0.2 million to
$43.8 million, as compared with fiscal year 2007, helped by the Company’s
product margin improvement. En Pointe’s services gross profits decreased by
$1.2 million in fiscal 2008 due to the absence of significant service revenues
in the quarter ended September 30, 2008 as a result of the sale of the
majority interest in the services business.

Total selling, general and administrative expenses, as a percent of net
sales increased to 17.5% in fiscal year 2008 from 12.2% in the prior fiscal
year. Fourth quarter fiscal 2008 selling, general and administrative expenses
were 23.1% of net sales, as compared with 11.6% in the fourth quarter of
fiscal 2007.

Asset Management

At September 30, 2008, the Company’s balance sheet contained $3.7 million
of cash and an unused credit line of $23.5 million after taking into
consideration available collateral. Accounts receivable decreased by
$25.9 million at September 30, 2008 as compared to the prior year due to
declining sales in part as a result of the sale of a majority interest in the
services business. At September 30, 2008, long-term debt remained low at
$0.5 million while stockholders’ equity climbed to $25.7 million.

About En Pointe Technologies, Inc.

En Pointe Technologies, Inc. provides the information technology
marketplace, including mid-market and enterprise accounts, government
agencies, and educational institutions nationwide, with computer hardware,
software, and services. En Pointe has the flexibility to customize information
technology services to fulfill the unique needs of each of its customers.

En Pointe employs SAP, Clarify(TM), and AccessPointe(TM) (an e-procurement
application), proven and dependable software applications, to support its
broad customer base. Founded in 1993 and headquartered in Los Angeles,
En Pointe is well represented in leading national markets throughout the
United States. En Pointe has the experience and the technology to help
organizations simplify the management of their information technology
infrastructure.

En Pointe’s Ovex Global division provides customers with solutions for
affordable information technology services by combining low cost with high
quality offshore services provided through its foreign subsidiary, Ovex
Technologies (Private), Inc., with experienced onshore information technology
management teams that provide the necessary supervision and guidance to smooth
each customer’s outsourcing transition.

Visit http://www.enpointe.com to learn more.

This document contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. In addition, from time to time,
En Pointe Technologies, or its representatives, have made or may make
forward-looking statements, orally or in writing. The words “estimate,”
“project,” “potential,” “intended,” “expect,” “anticipate,” “believe” and
similar expressions or words are intended to identify forward-looking
statements. Such forward-looking statements may be included in, but are not
limited to, various filings made by En Pointe with the Securities and Exchange
Commission, press releases or oral statements made with the approval of an
authorized executive officer of the Company. Actual results could differ
materially from those projected or suggested in any forward-looking statements
as a result of a wide variety of factors and conditions. Reference is hereby
made to En Pointe’s Annual Report on Form 10-K for the fiscal year ended
September 30, 2007 for information regarding those factors and conditions.
Among the important factors that could cause actual results to differ
materially from management’s projections, estimates and expectations include,
but are not limited to: changing economic influences in the industry;
dependence on key personnel; actions of manufacturers and suppliers; and
availability of adequate financing. Readers are cautioned not to place undue
reliance upon these forward-looking statements that speak only as of the date
of this press release. En Pointe undertakes no obligation to update publicly
any forward-looking statements to reflect new information, events or
circumstances after the date of this press release or to reflect the
occurrence of unanticipated events.

All trademarks and service marks are the property of their respective
owners.

     To contact En Pointe regarding any investor matters, please contact:

     Javed Latif
     Chief Financial Officer and
     Sr. Vice President, Operations
     En Pointe Technologies, Inc.
     Phone: (310) 337-5212
     Fax: (310) 337-9786
     ir@enpointe.com

To contact En Pointe regarding any sales or customer matters, please
e-mail us at: sales@enpointe.com or contact us by phone at (310) 337-5200.

    En Pointe Technologies, Inc.
    Condensed Consolidated Balance Sheets
    (Unaudited)
    (in thousands)

                                                          September 30,
                                                       2008           2007
                             ASSETS:
    Current assets:
      Cash                                            $3,691         $6,000
      Restricted cash                                     10             76
      Short term cash investment                                      1,000
      Accounts receivable, net                        35,448         61,391
      Due from affiliate                               3,586             --
      Inventories, net                                 5,858          8,768
      Prepaid expenses and other current assets        1,294          1,548
        Total current assets                          49,887         78,783

    Property and equipment, net of accumulated
     depreciation and amortization                     4,202          5,022

    Other assets                                      13,709          2,201

        Total assets                                 $67,798        $86,006

                 LIABILITIES AND STOCKHOLDERS' EQUITY:
    Current liabilities:
      Accounts payable, trade                        $15,817        $19,034
      Borrowings under line of credit                  7,840         30,314
      Accrued liabilities                              9,798          6,177
      Accrued taxes and other liabilities              6,252          6,814
        Total current liabilities                     39,707         62,339
      Long term liabilities                              475            447
        Total liabilities                             40,182         62,786

    Non-controlling interest                           1,962          1,957

    Total stockholders' equity                        25,654         21,263

        Total liabilities and stockholders' equity   $67,798        $86,006

    En Pointe Technologies, Inc.
    Condensed Consolidated Statements of Operations
    (Unaudited)
    (in thousands, except per share data)

                            Three months ended        Fiscal year ended
                               September 30,             September 30,
                             2008         2007         2008         2007
    Net sales:
      Product              $60,210      $85,285     $260,004     $299,335
      Service                2,874       11,756       40,458       47,791
        Total net sales     63,084       97,041      300,462      347,126
    Cost of sales:
      Product               53,866       78,654      233,291      274,128
      Service                1,565        6,683       23,332       29,447
        Total cost of
         sales              55,431       85,337      256,623      303,575
    Gross profit:
      Product                6,344        6,631       26,713       25,207
      Service                1,309        5,073       17,126       18,344
        Total gross profit   7,653       11,704       43,839       43,551

    Selling and marketing
     expenses                9,964        8,302       37,615       30,565
    General and
     administrative expenses 4,595        2,965       15,054       11,871

        Operating (loss)
         income             (6,906)         437       (8,830)       1,115

    Interest income, net        32           76           54          297
    Other income, net       15,274           10       14,708           79
    Income before income
     taxes                   8,400          523        5,932        1,491
    Income tax provision
     (benefit)               2,121         (232)       2,148         (203)
    Income before loss from
     equity investment and
     non-controlling
     interest                6,279          755        3,784        1,694
    Loss from equity
     investment               (152)          --         (152)          --
    Non-controlling interest    13          (26)          (5)         (68)
    Net income              $6,140         $729       $3,627       $1,626
    Net income per share:
    Basic                    $0.86        $0.10        $0.51        $0.23
    Diluted                  $0.85        $0.10        $0.50        $0.22

    Weighted average shares
     outstanding:
    Basic                    7,160        7,158        7,160        7,145
    Diluted                  7,263        7,462        7,263        7,456

SOURCE En Pointe Technologies, Inc.