To help customers improve their security programs while reducing costs, eLinear, Inc. (AMEX:ELU) today introduced new monitoring, integration and deployment services for digital video surveillance systems running on IP-based networks.

eLinear, under it's subsidiary TanSeco Systems, Inc., enters a rapidly-growing services market that's expected to approach $5 billion in the United States by 2005 (1), as companies, government agencies and other organizations transition away from less-effective videotape-based surveillance systems. The new eLinear services are targeted to customers in the government, travel and transportation, and retail sectors.

The services include video monitoring, system design, hardware and software installation, ongoing maintenance, and integration of digital video systems into customers' overall IT system architecture. eLinear has trained professionals on all aspects of the new services and is teaming with suppliers of video camera systems to deliver a complete solution.

Today's announcement comes as customers struggle with the limitations and expense of analog videotape-based surveillance systems. Tape-based systems require a video recorder for each camera to maintain a visual record, and the picture quality deteriorates quickly as tapes wear out. Searching through tapes is time consuming and labor intensive. Tape-based video surveillance solutions offer little, if any, integration with a company's other security measures, such as badge readers, intrusion detection systems, and alarm monitoring.

Because digital systems store images electronically, they are much more flexible than their tape-based counterparts. eLinear's digital surveillance solutions can offer numerous advantages:

-- Digital video can be monitored and images of a crime in progress can be instantly transmitted over a wireless local area network to the local police headquarters.

-- The systems can be programmed to automatically notice motion, irregularities, such as someone walking the wrong way in a customs line at the airport. Without human intervention, digital video systems can zoom in on individual faces to improve the chances of identification.

-- A searchable index of digital images may be created, enabling authorized users to query the system to, for example, report where a certain person went before he exited a building, or, list every person who stopped in front of a certain door on a specific day.

-- The quality of the digital image does not deteriorate over time, whether it's stored on disk, magnetic tape, CD-ROM, DVD or is transmitted over a network.

-- Business applications can be integrated with a digital surveillance system to expand the functionality of the system. For example: a sensor can trigger a video camera, which then sends the image of a vehicle's license plate number to an application that compares the plate number with information in a database. Once the information is processed, the application can take the necessary action -- for example, raising a gate to permit access to a parking facility.

-- The use of an IP network to transmit images and data enables authorized access to the system from any device with an Internet connection.

Customers are increasingly turning to digital video for security because it offers much greater function than tape-based systems at a better cost. Combining eLinear's IT knowledge with our security and loss prevention expertise, the new offering is a powerful addition to eLinear's solutions that help companies secure their physical assets.

eLinear digital video surveillance solutions include a variety of products, such as cameras and DVRS, server systems, tape and network attached storage, application servers, storage management software, and content manager software.

eLinear Security, Communication and Compliance services harness the expertise of security consultants, implementation specialists, engineers and technology architects. Services offerings include: enhanced intrusion detection and vulnerability assessments, security policy assessments, managed firewalls for hosted customers, scalable virtual private networking, authentication, content delivery, mobile connectivity, public wireless local area networks and cabling systems. Learn more about eLinear at www.elinear.com.

(1) Based on JP Freeman 2001 The Closed Circuit TV and Video Surveillance Market, which estimates video surveillance/CCTV systems will generate $1.6 billion in revenue in the United States in 2005. The Security Industry estimates the industry's services revenue opportunity to be approximately three times revenue generated by components, or approximately $4.8 billion.

eLinear previously announced revenue guidance of $32,000,000 to $36,000,000 for fiscal 2005.

About eLinear, Inc.

eLinear, Inc. is a communications, security and compliance company providing integrated technology solutions including information and physical security, IP Telephony and network and storage solutions infrastructure. Typically, the company's customers are Fortune 2000 and small- to medium-sized business organizations. eLinear's services are offered to companies seeking to increase productivity or reduce costs through investing in technology. eLinear has a national and international footprint and has its headquarters in Houston, Texas.

Safe Harbor Statement

This press release contains statements that may constitute forward-looking statements, including the company's ability to realize the projected revenues from the newly announced project orders and the future strength of the company's business and industry. These statements are based on current expectations and assumptions and involve a number of uncertainties and risks that could cause actual results to differ materially from those currently expected. For additional information about eLinear's future business and financial results, refer to eLinear's Annual Report on Form 10-KSB for the year ended December 31, 2004. eLinear undertakes no obligation to update any forward-looking statement that may be made from time to time by or on behalf of the company, whether as a result of new information, future events or otherwise.