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UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, DC 20549


Form 10-K


|   |  |                                                                                             
|-- |  | --------------------------------------------------------------------------------------------
|þ  |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|   |  | For the Fiscal Year Ended September 30, 2005                                                
|  
|OR
|  
|o  |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER: 000-28052





En Pointe Technologies, Inc.


(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


|                                                                                                                                                                                              |  |                                         
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------
|DELAWARE                                                                                                                                                                                      |  | 75-2467002                              
|(State or other jurisdiction of
    incorporation or organization)                                                                                                                            |  | (I.R.S. Employer
    Identification No.)
|                                                                                                                                                                                             
|100 NORTH SEPULVEDA BOULEVARD, 19TH FLOOR, EL SEGUNDO,
    CALIFORNIA 90245(Address of principal executive offices)Registrants telephone number, including area
    code:
    (310) 725-5200




Securities registered pursuant to Section 12(b) of the
Act:


None


Securities registered pursuant to Section 12(g) of the
Act:


Common Stock, par value $.001 per share


(Title Of Class)





þ o


Regulation S-K Form 10-K Form 10-K. þ


Rule 12b-2 o þ


Rule 12b-2 o þ






DOCUMENTS INCORPORATED BY REFERENCE












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##### 










EN POINTE TECHNOLOGIES, INC.


FORM 10-K


Year Ended September 30, 2005


TABLE OF CONTENTS


|             |  |                                                                                                                      |  |                                                                     |  |    
|------------ |  | -------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------- |  | ---
|PART I      
|Item 1.      |  | Business                                                                                                             |  | 2                                                                  
|Item 2.      |  | Properties                                                                                                           |  | 18                                                                 
|Item 3.      |  | Legal Proceedings                                                                                                    |  | 18                                                                 
|Item 4.      |  | Submission of Matters to a Vote of Security
    Holders                                                              |  | 19                                                                 
|PART II     
|Item 5.      |  | Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities |  | 19                                                                 
|Item 6.      |  | Selected Consolidated Financial Data                                                                                 |  | 20                                                                 
|Item 7.      |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                            |  | 21                                                                 
|Item 7A.     |  | Quantitative and Qualitative Disclosure
    About Market Risk                                                        |  | 31                                                                 
|Item 8.      |  | Financial Statements and Supplementary
    Data                                                                      |  | 31                                                                 
|Item 9.      |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                             |  | 31                                                                 
|Item 9A      |  | Controls and Procedures                                                                                              |  | 31                                                                 
|Item 9B      |  | Other Information                                                                                                    |  | 31                                                                 
|PART III    
|Item 10.     |  | Directors and Executive Officers of the
    Registrant                                                               |  | 31                                                                 
|Item 11.     |  | Executive Compensation                                                                                               |  | 32                                                                 
|Item 12.     |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters                   |  | 32                                                                 
|Item 13.     |  | Certain Relationships and Related
    Transactions                                                                   |  | 32                                                                 
|Item 14.     |  | Prinicipal Accountant Fees and Services                                                                              |  | 32                                                                 
|PART IV     
|Item 15.     |  | Exhibits and Financial Statement
    Schedules                                                                       |  | 33                                                                 
|             |  |                                                                                                                      |  | Consolidated Financial Statements                                   |  | F-1
|SIGNATURES   |  |                                                                                                                      |  |                                                                    
|             |  |                                                                                                                      |  | Chief Executive Officer, Chief Financial
    Officer, and Directors |  |    
|Exhibit 21.1
|Exhibit 23.1
|Exhibit 23.2
|Exhibit 31.1
|Exhibit 31.2
|Exhibit 32.1
|Exhibit 32.2



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PART I


THIS ANNUAL REPORT ON
FORM 10-K CONTAINS
FORWARD-LOOKING STATEMENTS RELATING TO FUTURE EVENTS OR THE
FUTURE FINANCIAL PERFORMANCE OF THE COMPANY INCLUDING, BUT NOT
LIMITED TO, STATEMENTS CONTAINED IN: ITEM 1.
BUSINESS  FACTORS WHICH MAY AFFECT FUTURE OPERATING
RESULTS AND ITEM 7. MANAGEMENTS
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS. READERS ARE CAUTIONED THAT SUCH STATEMENTS,
WHICH MAY BE IDENTIFIED BY WORDS INCLUDING
ANTICIPATES, BELIEVES,
INTENDS, ESTIMATES, EXPECTS,
AND SIMILAR EXPRESSIONS, ARE ONLY PREDICTIONS OR ESTIMATIONS AND
ARE SUBJECT TO KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES. IN
EVALUATING SUCH STATEMENTS, READERS SHOULD CONSIDER THE VARIOUS
FACTORS IDENTIFIED IN THIS ANNUAL REPORT ON
FORM 10-K,
INCLUDING MATTERS SET FORTH IN ITEM 1.
BUSINESS  FACTORS WHICH MAY AFFECT FUTURE OPERATING
RESULTS, WHICH COULD CAUSE ACTUAL EVENTS, PERFORMANCE OR
RESULTS TO DIFFER MATERIALLY FROM THOSE INDICATED BY SUCH
STATEMENTS.


Form 10-K ®







|        |         
|------- | --------
|Item 1. | Business

General




tm tm ease-of


Business Model




2



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tm up-to tm


day-to






tm


pick-up ready-to Just-in


3



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on-site








| |   |                                                                             
| | - | ----------------------------------------------------------------------------
| |  | overall customer project planning;                                          
|
| |  | detailed planning and scheduling of customer assets to be
    serviced;     
|
| |  | receipt confirmation of customer assets and subsequent tracking
    ability;
|
| |  | periodic detailed customer asset reporting by serial
    number; and        
|
| |  | management of customer life cycle process to include:                       



| |   |                                                                         
| | - | ------------------------------------------------------------------------
| |  | reconditioning and packaging,                                           
|
| |  | redeployment,                                                           
|
| |  | liquidation,                                                            
|
| |  | identification of leased assets and compliance with lease
    terms, and
|
| |  | work order history by serial number of each customer asset.             



tm


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| |   |                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | maintains software agreements for all major software publishers;                                                                                                                                  
|
| |  | incorporates a dynamic data model that simplifies reporting
    processes to allow improved identification of customer trends,
    sales opportunities, and customer milestones;                  
|
| |  | provides real-time product configuration that reduces time for
    sales reps to identify customer requested software products;                                                                   
|
| |  | restricts the data entry to a structured format that ensures
    adherence to vendor and publisher rules, thereby avoiding the
    costly retroactive correction of errors in processing;         
|
| |  | manages software agreements to offer customers the ability to
    purchase software more efficiently by increasing their awareness
    of software agreement terms, purchasing history, and needs;
|
| |  | identifies software products for compliance with customer
    software agreements;                                                                                                                
|
| |  | allows stricter service level agreements to be met by reducing
    turnaround time for quotes and orders; and                                                                                     
|
| |  | manages licensing agreements assuring customers are quoted and
    sold products in accordance with their existing agreements.                                                                    

eBusiness






tm e-business tm tm tm tm tm






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Managed and Professional Services






| |   |                                      
| | - | -------------------------------------
| |  | needs assessment,                    
|
| |  | solution design,                     
|
| |  | image development,                   
|
| |  | configuration,                       
|
| |  | deployment,                          
|
| |  | system refresh and disposal services,
|
| |  | post deployment support,             
|
| |  | help desk,                           
|
| |  | maintenance, and                     
|
| |  | asset management.                    





on-site


on-site on-site




6



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on-site


Products




Business Processing Outsourcing Investment








7



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Competition








face-to


8



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Getting Product to the Customer










Getting Product from the Supplier








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Intellectual Property




tm


tm


Segment Information




Employees








Factors Which May Affect Future Operating Results


Form 10-K


10



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| |   |                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------
| |  | declining sales in three of the last six years;                                                                                                 
|
| |  | limited availability of alternative credit facilities;                                                                                          
|
| |  | low margin business;                                                                                                                            
|
| |  | concentration of product and service sales in several major
    customers; and                                                                  
|
| |  | future funding required to sustain our investment in PBPO and
    the absorption of related losses until PBPO becomes profitable,
    if at all.

Form 10-K.




There are Risks in Conducting Our Daily Business Plans and
Strategy




There are Risks Outside of Our Control of Unfavorable
Economic Conditions That Could Negatively Impact on Our Revenues
and Profits




11



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There is a Risk We Could Lose Our Asset Based Financing Line
Without Being Able to


Readily Replace It






Our Low Margins Expose Us to Risks from Minor Adversities




There is Risk That a Large Customer Could be Lost Without
Being Able to Find a Ready Replacement




12



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With Our Fast Changing Industry Evolution We Risk Being
Outmoded or Excluded from the Distribution Channel








| |   |                                                                                
| | - | -------------------------------------------------------------------------------
| |  | traditional personal computer retailers,                                       
|
| |  | computer superstores,                                                          
|
| |  | consumer electronics and office supply superstores,                            
|
| |  | mass merchandisers,                                                            
|
| |  | corporate resellers,                                                           
|
| |  | value-added resellers,                                                         
|
| |  | specialty retailers,                                                           
|
| |  | distributors,                                                                  
|
| |  | franchisers,                                                                   
|
| |  | mail-order and web-order companies,                                            
|
| |  | national computer retailers,                                                   
|
| |  | service-only providers, and                                                    
|
| |  | manufacturers that have their own direct marketing operations to
    end-users.





13



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We Risk Depending on a Few Distributors and Manufacturers Who
Could Compete with Us or Limit Our Access to Their Product
Line








14



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We Risk Losing Communications with Our Back-Office Operation
in Pakistan




We Have the Risk of Losing Our Senior Management and Other
Key Personnel Upon


Whom We Depend






We Risk Failure to Integrate Acquisitions and/ or Investments
Into Our Business That Could Cause Future Losses








| |   |                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------
| |  | failure to achieve anticipated operating results,                                                                                        
|
| |  | difficulties in the assimilation of the operations, services,
    products, vendor agreements, and personnel of the acquired
    company,
|
| |  | the diversion of managements attention and other resources
    from other business concerns,                                            
|
| |  | entry into markets in which we have little or no prior
    experience, and                                                               
|
| |  | the potential loss of key employees, customers, or contracts of
    the acquired company.                                                

15



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We Risk Business Interruption From Our Dependence on
Centralized Operations


day-to


With the 47% Concentration of Ownership of Our Stock Held by
a Small Group of Directors, Officers, Family Members and an
Outside Principal Stockholder There are Risks They Can Exert
Significance Influence Over Corporate Matters




There Are Risks Quarterly Operating Results Can Vary From
Past Results and Become Volatile and Unpredictable






| |   |                                                                                                  
| | - | -------------------------------------------------------------------------------------------------
| |  | the demand for information technology products and value-added
    services;                     
|
| |  | adoption of internet commerce models;                                                            
|
| |  | introduction of new hardware and software technologies;                                          
|
| |  | introduction of new value-added services by us and our
    competitors;                          
|
| |  | changes in manufacturers prices or price protection
    policies;                               
|
| |  | changes in shipping rates; disruption of warehousing or shipping
    channels;                   
|
| |  | changes in the level of operating expenses, including costs from
    turnover of sales personnel;
|
| |  | the timing of major marketing or other service projects;                                         
|
| |  | product supply shortages; inventory adjustments;                                                 

16



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| |   |                                                                                             
| | - | --------------------------------------------------------------------------------------------
| |  | changes in product mix; entry into new geographic markets;                                  
|
| |  | the timing and integration of acquisitions or investments;                                  
|
| |  | difficulty in managing margins; the loss of significant customer
    contracts;             
|
| |  | the necessity to write-off a significant amount of accounts
    receivable or inventory; and
|
| |  | general competitive and economic conditions.                                                

period-to




Our Stock Tends to Be Volatile with Large Percentage Price
Moves Which Can Expose Investors to Unanticipated Losses


quarter-to


If Our Internal Controls Prove to Be Infective That Could
Negatively Impact Investors and Cause Our Stock Price to Drop




If Preferred Stock is Ever Issued as an Anti-Takeover
Measure, There is a Risk That Common Stockholders Could be
Adversely Affected




17



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|        |           
|------- | ----------
|Item 2. | Properties









| |   |                             
| | - | ----------------------------
| |  | Atlanta, Georgia            
|
| |  | Beaverton, Oregon;          
|
| |  | Boise, Idaho                
|
| |  | Boulder, Colorado           
|
| |  | Chicago, Illinois           
|
| |  | Draper, Utah                
|
| |  | Huntington Beach, California
|
| |  | Issaquah, Washington.       
|
| |  | Walpole, Massachusetts      










|        |                  
|------- | -----------------
|Item 3. | Legal Proceedings





18



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|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders






PART II







|        |                                                                                                                     
|------- | --------------------------------------------------------------------------------------------------------------------
|Item 5. | Market for Registrants Common Equity, Related
    Stockholder Matters and Issuer Purchases of Equity
    Securities



|            |                                  |      |   |       |     |  |   |       | 
|----------- | -------------------------------- | ---- | - | ----- | --- |  | - | ----- | 
|            |                                  | High |   |       | Low | 
|            |                                  |      |   |       |     | 
|Fiscal 2004 |                                  |      |   |       |     |  |   |      
|            | First quarter                    |      | $ | 4.050 |     |  | $ | 0.850 | 
|            | Second quarter                   |      |   | 3.980 |     |  |   | 1.490 | 
|            | Third quarter                    |      |   | 2.920 |     |  |   | 1.590 | 
|            | Fourth quarter                   |      |   | 2.400 |     |  |   | 1.450 | 
|Fiscal 2005 |                                  |      |   |       |     |  |   |      
|            | First quarter                    |      | $ | 3.490 |     |  | $ | 1.710 | 
|            | Second quarter                   |      |   | 4.000 |     |  |   | 2.550 | 
|            | Third quarter                    |      |   | 3.500 |     |  |   | 2.500 | 
|            | Fourth quarter                   |      |   | 3.430 |     |  |   | 2.520 | 
|Fiscal 2006 |                                  |      |   |       |     |  |   |      
|            | First quarter (through 12/16/05) |      | $ | 3.100 |     |  | $ | 2.020 | 





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|        |                                     
|------- | ------------------------------------
|Item 6. | Selected Consolidated Financial Data



Form 10-K.


|                                                              |                                                                                     |                                       |         |        |      |   |         |        |       |   |         |        |        |      |         |        |        |   |         |        |        |  
|------------------------------------------------------------- | ----------------------------------------------------------------------------------- | ------------------------------------- | ------- | ------ | ---- | - | ------- | ------ | ----- | - | ------- | ------ | ------ | ---- | ------- | ------ | ------ | - | ------- | ------ | ------ | -
|                                                              |                                                                                     | Fiscal Year Ended September 30,       |        
|                                                              |                                                                                     |                                       |        
|                                                              |                                                                                     | 2005                                  |         |        | 2004 |   |         | 2003   |       |   | 2002    |        |        | 2001 |        
|                                                              |                                                                                     |                                       |         |        |      |   |         |        |       |   |         |        |        |      |        
|                                                              |                                                                                     | (In thousands, except per share data) |        
|Statement of Operations Data:                                 |                                                                                     |                                       |         |        |      |   |         |        |       |   |         |        |        |      |         |        |        |   |         |       
|Net sales                                                     |                                                                                     | $                                     | 328,332 |        |      | $ | 279,234 |        |       | $ | 289,811 |        |        | $    | 257,043 |        |        | $ | 365,280 |       
|Cost of sales                                                 |                                                                                     |                                       | 293,274 |        |      |   | 244,758 |        |       |   | 253,771 |        |        |      | 229,505 |        |        |   | 325,792 |       
|                                                              |                                                                                     |                                       |         |        |      |   |         |        |       |   |         |        |        |      |        
|                                                              | Gross profit                                                                        |                                       |         | 35,058 |      |   |         | 34,476 |       |   |         | 36,040 |        |      |         | 27,538 |        |   |         | 39,488 |       
|Operating expenses:                                           |                                                                                     |                                       |         |        |      |   |         |        |       |   |         |        |        |      |         |        |        |   |         |       
|                                                              | Selling and marketing expenses                                                      |                                       |         | 25,792 |      |   |         | 22,930 |       |   |         | 27,556 |        |      |         | 23,631 |        |   |         | 29,957 |       
|                                                              | General and administrative expenses                                                 |                                       |         | 10,143 |      |   |         | 10,048 |       |   |         | 9,998  |        |      |         | 10,783 |        |   |         | 10,931 |       
|                                                              | Charges (income)                                                                    |                                       |         |       |      |   |         |       |       |   |         | 393    |        |      |         | (918   | )      |   |         | 846    |       
|                                                              |                                                                                     |                                       |         |        |      |   |         |        |       |   |         |        |        |      |        
|                                                              |                                                                                     | Operating (loss) income               |         |        | (877 | ) |         |        | 1,499 |   |         |        | (1,907 | )    |         |        | (5,958 | ) |         |        | (2,246 | )
|Interest (income) expense                                     |                                                                                     |                                       | (6      | )      |      |   | 749     |        |       |   | 871     |        |        |      | 686     |        |        |   | 970     |       
|Other income, net                                             |                                                                                     |                                       | (644    | )      |      |   | (646    | )      |       |   | (238    | )      |        |      | (364    | )      |        |   | (269    | )     
|                                                              |                                                                                     |                                       |         |        |      |   |         |        |       |   |         |        |        |      |        
|                                                              | (Loss) income before taxes, minority interest and income (loss)
    from affiliates |                                       |         | (227   | )    |   |         | 1,396  |       |   |         | (2,540 | )      |      |         | (6,280 | )      |   |         | (2,947 | )     
|Provision (benefit) for income taxes                          |                                                                                     |                                       | 21      |        |      |   | 131     |        |       |   |        |        |        |      | (2,182  | )      |        |   | 86      |       
|                                                              |                                                                                     |                                       |         |        |      |   |         |        |       |   |         |        |        |      |        
|                                                              | (Loss) income before minority interest and income from affiliates                   |                                       |         | (248   | )    |   |         | 1,265  |       |   |         | (2,540 | )      |      |         | (4,098 | )      |   |         | (3,033 | )     
|Minority interests in affiliate losses                        |                                                                                     |                                       | 393     |        |      |   | 136     |        |       |   |         |        |        |      |         |        |        |   |         |       
|Income from affiliates                                        |                                                                                     |                                       |        |        |      |   |        |        |       |   | 143     |        |        |      | 674     |        |        |   | 8,392   |       
|                                                              |                                                                                     |                                       |         |        |      |   |         |        |       |   |         |        |        |      |        
|                                                              |                                                                                     | Net income (loss)                     |         | $      | 145  |   |         | $      | 1,401 |   |         | $      | (2,397 | )    |         | $      | (3,424 | ) |         | $      | 5,359  |  
|                                                              |                                                                                     |                                       |         |        |      |   |         |        |       |   |         |        |        |      |        
|Net income (loss) per share:                                  |                                                                                     |                                       |         |        |      |   |         |        |       |   |         |        |        |      |         |        |        |   |         |       
|                                                              | Basic                                                                               |                                       | $       | .02    |      |   | $       | .21    |       |   | $       | (.36   | )      |      | $       | (.51   | )      |   | $       | .81    |       
|                                                              |                                                                                     |                                       |         |        |      |   |         |        |       |   |         |        |        |      |        
|                                                              | Diluted                                                                             |                                       | $       | .02    |      |   | $       | .20    |       |   | $       | (.36   | )      |      | $       | (.51   | )      |   | $       | .80    |       
|                                                              |                                                                                     |                                       |         |        |      |   |         |        |       |   |         |        |        |      |        
|Weighted average shares and share equivalents outstanding(1): |                                                                                     |                                       |         |        |      |   |         |        |       |   |         |        |        |      |         |        |        |   |         |       
|                                                              | Basic                                                                               |                                       |         | 6,866  |      |   |         | 6,737  |       |   |         | 6,720  |        |      |         | 6,666  |        |   |         | 6,597  |       
|                                                              |                                                                                     |                                       |         |        |      |   |         |        |       |   |         |        |        |      |        
|                                                              | Diluted                                                                             |                                       |         | 7,103  |      |   |         | 6,854  |       |   |         | 6,720  |        |      |         | 6,666  |        |   |         | 6,685  |       
|                                                              |                                                                                     |                                       |         |        |      |   |         |        |       |   |         |        |        |      |        

20



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|                                              |  |                     |        |  |      |   |        |      |  |   |        |  |  |      |        |  |  |   |        | 
|--------------------------------------------- |  | ------------------- | ------ |  | ---- | - | ------ | ---- |  | - | ------ |  |  | ---- | ------ |  |  | - | ------ | 
|                                              |  | As of September 30, |       
|                                              |  |                     |       
|                                              |  | 2005                |        |  | 2004 |   |        | 2003 |  |   | 2002   |  |  | 2001 |       
|                                              |  |                     |        |  |      |   |        |      |  |   |        |  |  |      |       
|                                              |  | (In thousands)      |       
|Balance Sheet Data:                           |  |                     |        |  |      |   |        |      |  |   |        |  |  |      |        |  |  |   |        | 
|Working capital                               |  | $                   | 16,064 |  |      | $ | 17,878 |      |  | $ | 14,732 |  |  | $    | 16,846 |  |  | $ | 20,229 | 
|Total assets                                  |  | $                   | 62,896 |  |      | $ | 61,432 |      |  | $ | 51,655 |  |  | $    | 52,200 |  |  | $ | 56,015 | 
|Borrowings under lines of credit and flooring |  | $                   | 16,824 |  |      | $ | 18,309 |      |  | $ | 11,326 |  |  | $    | 12,421 |  |  | $ | 9,440  | 
|Long term liabilities                         |  | $                   | 584    |  |      | $ | 5,628  |      |  | $ | 5,391  |  |  | $    | 5,433  |  |  | $ | 5,431  | 
|Stockholders equity                          |  | $                   | 18,451 |  |      | $ | 17,978 |      |  | $ | 16,426 |  |  | $    | 18,823 |  |  | $ | 22,037 | 






|    |                                                          
|--- | ---------------------------------------------------------
|(1) | See Note 1 of Notes to Consolidated Financial Statements.






|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

Form 10-K.


Executive Overview












21



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Critical Accounting Policies


Form 10-K




Revenue Recognition.










Allowance for Doubtful Accounts.


22



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Product Returns.


Vendor Returns.


Rebates and Cooperative Marketing Incentives.




Inventory.


23



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Results of Operations




|                                               |                                                                   |                    |      |      |       |  |      |      |       |  |      |      |       | 
|---------------------------------------------- | ----------------------------------------------------------------- | ------------------ | ---- | ---- | ----- |  | ---- | ---- | ----- |  | ---- | ---- | ----- | 
|                                               |                                                                   | Fiscal Year Ended  |     
|                                               |                                                                   | September 30,      |     
|                                               |                                                                   |                    |     
|                                               |                                                                   | 2005               |      |      | 2004  |  |      | 2003 |      
|                                               |                                                                   |                    |      |      |       |  |      |      |      
|Net sales:                                     |                                                                   |                    |      |      |       |  |      |      |       |  |      |     
|                                               | Product                                                           |                    |      | 85.1 | %     |  |      | 84.8 | %     |  |      | 87.1 | %    
|                                               | Services                                                          |                    |      | 14.9 |       |  |      | 15.2 |       |  |      | 12.9 |      
|                                               |                                                                   |                    |      |      |       |  |      |      |      
|                                               |                                                                   | Total net sales    |      |      | 100.0 |  |      |      | 100.0 |  |      |      | 100.0 | 
|Gross profit:                                  |                                                                   |                    |      |      |       |  |      |      |       |  |      |     
|                                               | Product                                                           |                    |      | 6.3  |       |  |      | 6.3  |       |  |      | 6.7  |      
|                                               | Services                                                          |                    |      | 4.3  |       |  |      | 6.1  |       |  |      | 5.7  |      
|                                               |                                                                   |                    |      |      |       |  |      |      |      
|                                               |                                                                   | Total gross profit |      |      | 10.7  |  |      |      | 12.3  |  |      |      | 12.4  | 
|Selling and marketing expenses                 |                                                                   |                    | 7.9  |      |       |  | 8.2  |      |       |  | 9.5  |     
|General and administrative expenses            |                                                                   |                    | 3.1  |      |       |  | 3.6  |      |       |  | 3.5  |     
|Special charges                                |                                                                   |                    |     |      |       |  |     |      |       |  | 0.1  |     
|                                               |                                                                   |                    |      |      |       |  |      |      |      
|                                               | Operating (loss) income                                           |                    |      | (0.2 | )     |  |      | 0.5  |       |  |      | (0.7 | )    
|Interest (income) expense, net                 |                                                                   |                    | 0.0  |      |       |  | 0.2  |      |       |  | 0.3  |     
|Other income, net                              |                                                                   |                    | (0.1 | )    |       |  | (0.2 | )    |       |  | (0.1 | )   
|                                               |                                                                   |                    |      |      |       |  |      |      |      
|                                               | (Loss) income before taxes and minority interest                  |                    |      | (0.1 | )     |  |      | 0.5  |       |  |      | (0.9 | )    
|Provision for income taxes                     |                                                                   |                    | 0.0  |      |       |  | 0.0  |      |       |  | 0.0  |     
|                                               |                                                                   |                    |      |      |       |  |      |      |      
|                                               | (Loss) income before minority interest and income from affiliates |                    |      | (0.1 | )     |  |      | 0.5  |       |  |      | (0.9 | )    
|Minority interest in affiliate loss            |                                                                   |                    | 0.1  |      |       |  | 0.0  |      |       |  | 0.0  |     
|Income from reversal of losses from affiliates |                                                                   |                    |     |      |       |  |     |      |       |  | 0.1  |     
|                                               |                                                                   |                    |      |      |       |  |      |      |      
|                                               | Net income (loss)                                                 |                    |      | 0.0  | %     |  |      | 0.5  | %     |  |      | (.8  | )%   
|                                               |                                                                   |                    |      |      |       |  |      |      |      

Comparison of Fiscal Years Ended September 30, 2005 and
2004


Net Sales.




Gross Profit.


24



---



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Selling and Marketing Expenses.




General and Administrative Expenses.






Operating (Loss) Income.


Interest (Income) Expense, Net.


25



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Other Income.


Provision for Income Taxes.






Minority Interest.


Net Income (Loss).


Comparison of Fiscal Years Ended September 30, 2004 and
2003


Net Sales.




Gross Profit.


26



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Selling and Marketing Expenses.




General and Administrative Expenses.






Operating (Loss) Income.


Interest (Income) Expense, Net.


Provision (Benefit) for Income Taxes.


27



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Minority Interest.


Income from Reversal of Losses from Affiliates.


Net Income (Loss).


Liquidity and Capital Resources










28



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build-up










day-to face-to




Recent Accounting Pronouncements




29



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Obligations and Commitments




|                             |  |                        |        |           |        |   |        |       |  |     |       |         |       |   |   |  |  |   |   | 
|---------------------------- |  | ---------------------- | ------ | --------- | ------ | - | ------ | ----- |  | --- | ----- | ------- | ----- | - | - |  |  | - | - | 
|                             |  | Payments Due by Period
|                             |  |                       
|                             |  |                        |        | Less Than |        |   | 1-3    |       |  | 4-5 |       | After 5
|Contractual Cash Obligations |  | Total                  |        |           | 1 Year |   |        | Years |  |     | Years |         | Years
|                             |  |                        |        |           |        |   |        |       |  |     |       |         |      
|                             |  | (In thousands)        
|Capital leases               |  | $                      | 1,089  |           |        | $ | 455    |       |  | $   | 633   |         |       | $ |  |  |  | $ |  | 
|Operating leases             |  | $                      | 2,079  |           |        | $ | 1,617  |       |  | $   | 463   |         |       | $ |  |  |  | $ |  | 
|Line of credit               |  | $                      | 16,824 |           |        | $ | 16,824 |       |  | $   |      |         |       | $ |  |  |  | $ |  | 

30



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|         |                                                              
|-------- | -------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosure About Market
    Risk










|        |                                            
|------- | -------------------------------------------
|Item 8. | Financial Statements and Supplementary Data

page F-1.







|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure








|         |                        
|-------- | -----------------------
|Item 9A. | Controls and Procedures

Rules 13a-15(e)


Rules 13a-15(e)









|         |                  
|-------- | -----------------
|Item 9B. | Other Information






PART III







|         |                                                   
|-------- | --------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant





31



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Form 8-K.







|         |                       
|-------- | ----------------------
|Item 11. | Executive Compensation








|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Stockholder Matters



Equity Compensation Plan Information




|                                                           |  |                            |           |  |                      |                         |                              |                          |  |  |         | 
|---------------------------------------------------------- |  | -------------------------- | --------- |  | -------------------- | ----------------------- | ---------------------------- | ------------------------ |  |  | ------- | 
|                                                           |  |                            |           |  |                      | Number of Securities    |                             
|                                                           |  |                            |           |  |                      | Remaining Available for |                             
|                                                           |  | Number of Securities to be |           |  |                      |                         | Future Issuance Under Equity |                         
|                                                           |  | Issued Upon Exercise of    |           |  | Weighted-Average     |                         |                              | Compensation Plans as of | 
|                                                           |  | Outstanding Options,       |           |  | Exercise Price of    |                         |                              | September 30, 2005       | 
|                                                           |  | Warrants and Rights as of  |           |  | Outstanding Options, |                         |                              | (Excluding Securities    | 
|                                                           |  | September 30, 2005         |           |  | Warrants and Rights  |                         |                              | Reflected in Column (a)) | 
|Plan Category                                              |  | (a)                        |           |  | (b)                  |                         |                              | (c)                      | 
|                                                           |  |                            |           |  |                      |                         |                              |                          | 
|Equity compensation plans approved by security holders:    |  |                            |           |  |                      |                         |                              |                          |  |  |         | 
|1996 Stock Incentive Plan                                  |  |                            | 1,545,773 |  |                      | $                       | 3.41                         |                          |  |  | 335,954 | 
|Employee Stock Purchase Plan                               |  |                            | N/A       |  |                      |                         | N/A                          |                          |  |  | 350,007 | 
|Equity compensation plans not approved by security holders |  |                            |          |  |                      |                         |                             |                          |  |  |        | 
|                                                           |  |                            |           |  |                      |                         |                              |                          | 
|Total                                                      |  |                            | 1,545,773 |  |                      | $                       | 3.41                         |                          |  |  | 685,961 | 
|                                                           |  |                            |           |  |                      |                         |                              |                          | 






|         |                                               
|-------- | ----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions








|         |                                       
|-------- | --------------------------------------
|Item 14. | Principal Accountant Fees and Services

PRE-APPROVAL


32



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PART IV







|         |                                           
|-------- | ------------------------------------------
|Item 15. | Exhibits and Financial Statement Schedules





| |                         
| | ------------------------
| | (1) Financial Statements



| |                                                                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The list of financial statements contained in the accompanying
    Index to Financial Statements covered by Report of Independent
    Accountants is herein incorporated by reference.



| |                                  
| | ---------------------------------
| | (2) Financial Statement Schedules



| |                                                                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The list of financial statements schedules contained in the
    accompanying Index to Financial Statements covered by Report of
    Independent Accountants is herein incorporated by reference.
|
| | All other schedules are omitted because they are not applicable
    or the required information is shown in the financial statements
    or notes thereto.                                      





33



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EN POINTE TECHNOLOGIES





INDEX TO FINANCIAL STATEMENTS


|                                                                                                                           |  |      |           | 
|-------------------------------------------------------------------------------------------------------------------------- |  | ---- | --------- | 
|                                                                                                                           |  | Page |          
|                                                                                                                           |  |      |          
|Reports of Independent Registered Public
    Accounting Firms                                                              |  |      | F-2 - F-3 | 
|Consolidated Balance Sheets as of
    September 30, 2005 and 2004                                                          |  |      | F-4       | 
|Consolidated Statements of Operations for
    each of the Three Years in the Period Ended September 30,
    2005           |  |      | F-5       | 
|Consolidated Statements of
    Stockholders Equity for each of the Three Years in the
    Period Ended September 30, 2005 |  |      | F-6       | 
|Consolidated Statements of Cash Flows for
    each of the Three Years in the Period Ended September 30,
    2005           |  |      | F-7       | 
|Notes to Consolidated Financial
    Statements                                                                             |  |      | F-8       | 
|Schedule II  Valuation and
    Qualifying Accounts                                                                        |  |      | F-28      | 

F-1



---



##### Table of Contents






INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
















| |                     
| | --------------------
| | /s/ BDO Seidman, LLP





F-2



---



##### Table of Contents



INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM










| |                                   
| | ----------------------------------
| | /s/ Pricewaterhousecoopers
    LLP





F-3



---



##### Table of Contents



EN POINTE TECHNOLOGIES, INC.





CONSOLIDATED BALANCE SHEETS


|                                                                             |                                                                                                              |                                                                                |       |         |        |  |       |         |        | 
|---------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------ | ----- | ------- | ------ |  | ----- | ------- | ------ | 
|                                                                             |                                                                                                              | September 30,                                                                  |      
|                                                                             |                                                                                                              |                                                                                |      
|                                                                             |                                                                                                              | 2005                                                                           |       |         | 2004   | 
|                                                                             |                                                                                                              |                                                                                |       |         |        | 
|                                                                             |                                                                                                              | (In thousands except                                                           |      
|                                                                             |                                                                                                              | share and per share                                                            |      
|                                                                             |                                                                                                              | amounts)                                                                       |      
|ASSETS                                                                      
|Current assets:                                                              |                                                                                                              |                                                                                |       |         |        |  |       |        
|                                                                             | Cash                                                                                                         |                                                                                | $     | 6,903   |        |  | $     | 16,072  |       
|                                                                             | Restricted cash                                                                                              |                                                                                |       | 72      |        |  |       | 71      |       
|                                                                             | Accounts receivable, net of allowance for returns and doubtful
    accounts of $822 and $1,044, respectively |                                                                                |       | 40,916  |        |  |       | 31,571  |       
|                                                                             | Inventories, net of allowances of $374 and $354, respectively                                                |                                                                                |       | 10,367  |        |  |       | 7,105   |       
|                                                                             | Prepaid expenses and other current assets                                                                    |                                                                                |       | 764     |        |  |       | 578     |       
|                                                                             |                                                                                                              |                                                                                |       |         |        | 
|                                                                             |                                                                                                              | Total current assets                                                           |       |         | 59,022 |  |       |         | 55,397 | 
|Property and equipment, net of accumulated depreciation and
    amortization |                                                                                                              |                                                                                | 3,070 |         |        |  | 5,346 |        
|Other assets                                                                 |                                                                                                              |                                                                                | 804   |         |        |  | 689   |        
|                                                                             |                                                                                                              |                                                                                |       |         |        | 
|                                                                             |                                                                                                              | Total assets                                                                   |       | $       | 62,896 |  |       | $       | 61,432 | 
|                                                                             |                                                                                                              |                                                                                |       |         |        | 
|                                                                            
|LIABILITIES AND STOCKHOLDERS EQUITY                                        
|Current liabilities:                                                         |                                                                                                              |                                                                                |       |         |        |  |       |        
|                                                                             | Accounts payable, trade                                                                                      |                                                                                | $     | 18,444  |        |  | $     | 13,971  |       
|                                                                             | Borrowings under line of credit                                                                              |                                                                                |       | 16,824  |        |  |       | 18,309  |       
|                                                                             | Accrued employee compensation and benefits                                                                   |                                                                                |       | 3,409   |        |  |       | 2,406   |       
|                                                                             | Other accrued liabilities                                                                                    |                                                                                |       | 935     |        |  |       | 1,681   |       
|                                                                             | Deferred income                                                                                              |                                                                                |       | 908     |        |  |       | 77      |       
|                                                                             | Accrued taxes and other liabilities                                                                          |                                                                                |       | 2,438   |        |  |       | 1,074   |       
|                                                                             |                                                                                                              |                                                                                |       |         |        | 
|                                                                             |                                                                                                              | Total current liabilities                                                      |       |         | 42,958 |  |       |         | 37,518 | 
|Long term liabilities                                                        |                                                                                                              |                                                                                | 584   |         |        |  | 5,628 |        
|                                                                             |                                                                                                              |                                                                                |       |         |        | 
|                                                                             |                                                                                                              | Total liabilities                                                              |       |         | 43,542 |  |       |         | 43,146 | 
|                                                                             |                                                                                                              |                                                                                |       |         |        | 
|Minority interest                                                            |                                                                                                              |                                                                                | 903   |         |        |  | 308   |        
|                                                                             |                                                                                                              |                                                                                |       |         |        | 
|Commitments and contingencies (Note 7 and 12)                                |                                                                                                              |                                                                                |       |         |        |  |       |        
|Stockholders equity:                                                        |                                                                                                              |                                                                                |       |         |        |  |       |        
|                                                                             | Preferred stock, $.001 par value:                                                                            |                                                                                |       |         |        |  |       |         |       
|                                                                             |                                                                                                              | Shares authorized  5,000,000                                                  |       |         |        |  |       |         |        | 
|                                                                             |                                                                                                              | No shares issued or outstanding                                                |       |         |       |  |       |         |       | 
|                                                                             | Common stock, $.001 par value:                                                                               |                                                                                |       |         |        |  |       |         |       
|                                                                             |                                                                                                              | Shares authorized  40,000,000; with 6,973,472 and
    6,814,336 shares issued |       |         | 7      |  |       |         | 7      | 
|                                                                             | Additional paid-in capital                                                                                   |                                                                                |       | 41,718  |        |  |       | 41,390  |       
|                                                                             | Treasury stock, at cost; 702 shares in 2005 and 2004                                                         |                                                                                |       | (1      | )      |  |       | (1      | )     
|                                                                             | Accumulated deficit                                                                                          |                                                                                |       | (23,273 | )      |  |       | (23,418 | )     
|                                                                             |                                                                                                              |                                                                                |       |         |        | 
|                                                                             | Total stockholders equity                                                                                   |                                                                                |       | 18,451  |        |  |       | 17,978  |       
|                                                                             |                                                                                                              |                                                                                |       |         |        | 
|                                                                             |                                                                                                              | Total liabilities and stockholders equity                                     |       | $       | 62,896 |  |       | $       | 61,432 | 
|                                                                             |                                                                                                              |                                                                                |       |         |        | 



F-4



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##### Table of Contents



EN POINTE TECHNOLOGIES, INC.





CONSOLIDATED STATEMENTS OF OPERATIONS


|                                                                                    |                         |                                                            |         |         |         |       |        |         |         |       |        |         |         |       |  
|----------------------------------------------------------------------------------- | ----------------------- | ---------------------------------------------------------- | ------- | ------- | ------- | ----- | ------ | ------- | ------- | ----- | ------ | ------- | ------- | ----- | -
|                                                                                    |                         | Year Ended September 30,                                   |        
|                                                                                    |                         |                                                            |        
|                                                                                    |                         | 2005                                                       |         |         | 2004    |       |        | 2003    |        
|                                                                                    |                         |                                                            |         |         |         |       |        |         |        
|                                                                                    |                         | (In thousands except per                                   |        
|                                                                                    |                         | share amounts)                                             |        
|Net sales                                                                           |                         |                                                            |         |         |         |       |        |         |         |       |        |        
|                                                                                    | Product                 |                                                            | $       | 279,325 |         |       | $      | 236,707 |         |       | $      | 252,493 |        
|                                                                                    | Service                 |                                                            |         | 49,007  |         |       |        | 42,527  |         |       |        | 37,318  |        
|                                                                                    |                         |                                                            |         |         |         |       |        |         |        
|                                                                                    |                         | Total net sales                                            |         |         | 328,332 |       |        |         | 279,234 |       |        |         | 289,811 |      
|                                                                                    |                         |                                                            |         |         |         |       |        |         |        
|Cost of sales                                                                       |                         |                                                            |         |         |         |       |        |         |         |       |        |        
|                                                                                    | Product                 |                                                            |         | 258,516 |         |       |        | 219,125 |         |       |        | 233,059 |        
|                                                                                    | Service                 |                                                            |         | 34,758  |         |       |        | 25,633  |         |       |        | 20,712  |        
|                                                                                    |                         |                                                            |         |         |         |       |        |         |        
|                                                                                    |                         | Total cost of sales                                        |         |         | 293,274 |       |        |         | 244,758 |       |        |         | 253,771 |      
|                                                                                    |                         |                                                            |         |         |         |       |        |         |        
|Gross profit                                                                        |                         |                                                            |         |         |         |       |        |         |         |       |        |        
|                                                                                    | Product                 |                                                            |         | 20,809  |         |       |        | 17,582  |         |       |        | 19,434  |        
|                                                                                    | Service                 |                                                            |         | 14,249  |         |       |        | 16,894  |         |       |        | 16,606  |        
|                                                                                    |                         |                                                            |         |         |         |       |        |         |        
|                                                                                    |                         | Total gross profit                                         |         |         | 35,058  |       |        |         | 34,476  |       |        |         | 36,040  |      
|Selling and marketing expenses                                                      |                         |                                                            | 25,792  |         |         |       | 22,930 |         |         |       | 27,556 |        
|General and administrative expenses                                                 |                         |                                                            | 10,143  |         |         |       | 10,047 |         |         |       | 9,998  |        
|Special charges                                                                     |                         |                                                            |        |         |         |       |       |         |         |       | 393    |        
|                                                                                    |                         |                                                            |         |         |         |       |        |         |        
|                                                                                    | Operating (loss) income |                                                            |         | (877    | )       |       |        | 1,499   |         |       |        | (1,907  | )      
|Interest (income) expense, net                                                      |                         |                                                            | (6      | )       |         |       | 749    |         |         |       | 871    |        
|Other income, net                                                                   |                         |                                                            | (644    | )       |         |       | (646   | )       |         |       | (238   | )      
|                                                                                    |                         |                                                            |         |         |         |       |        |         |        
|(Loss) income before income taxes, minority interest and income
    from affiliates |                         |                                                            | (227    | )       |         |       | 1,396  |         |         |       | (2,540 | )      
|Provision for income taxes                                                          |                         |                                                            | 21      |         |         |       | 131    |         |         |       |       |        
|                                                                                    |                         |                                                            |         |         |         |       |        |         |        
|(Loss) income before minority interest and income from affiliates                   |                         |                                                            | (248    | )       |         |       | 1,265  |         |         |       | (2,540 | )      
|Minority interest in affiliate loss                                                 |                         |                                                            | 393     |         |         |       | 136    |         |         |       |       |        
|Income from reversal of losses from affiliates                                      |                         |                                                            |        |         |         |       |       |         |         |       | 143    |        
|                                                                                    |                         |                                                            |         |         |         |       |        |         |        
|                                                                                    | Net income (loss)       |                                                            | $       | 145     |         |       | $      | 1,401   |         |       | $      | (2,397  | )      
|                                                                                    |                         |                                                            |         |         |         |       |        |         |        
|                                                                                    |                         | Net income (loss) per share:                               |         |         |         |       |        |         |         |       |        |         |         |      
|                                                                                    |                         |                                                            | Basic   |         | $       | .02   |        |         | $       | .21   |        |         | $       | (.36  | )
|                                                                                    |                         |                                                            |         |         |         |       |        |         |        
|                                                                                    |                         |                                                            | Diluted |         | $       | .02   |        |         | $       | .20   |        |         | $       | (.36  | )
|                                                                                    |                         |                                                            |         |         |         |       |        |         |        
|                                                                                    |                         | Weighted average shares and share equivalents outstanding: |         |         |         |       |        |         |         |       |        |         |         |      
|                                                                                    |                         |                                                            | Basic   |         |         | 6,866 |        |         |         | 6,737 |        |         |         | 6,720 |  
|                                                                                    |                         |                                                            |         |         |         |       |        |         |        
|                                                                                    |                         |                                                            | Diluted |         |         | 7,103 |        |         |         | 6,854 |        |         |         | 6,720 |  
|                                                                                    |                         |                                                            |         |         |         |       |        |         |        



F-5



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##### Table of Contents



EN POINTE TECHNOLOGIES, INC.





CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY


|                              |                                                                |                |       |     |            |   |   |          |  |   |              |     |  |          |    |   |       |   |         |        |   |   |        |        |  
|----------------------------- | -------------------------------------------------------------- | -------------- | ----- | --- | ---------- | - | - | -------- |  | - | ------------ | --- |  | -------- | -- | - | ----- | - | ------- | ------ | - | - | ------ | ------ | -
|                              |                                                                | Common Stock   |       |     | Additional |   |   |          |  |   |              |    
|                              |                                                                |                |       |     | Paid-In    |   |   | Treasury |  |   | (Accumulated |     |  |         
|                              |                                                                | Shares         |       |     | Amount     |   |   | Capital  |  |   | Stock        |     |  | Deficit) |    |   | Total |  
|                              |                                                                |                |       |     |            |   |   |          |  |   |              |     |  |          |    |   |       |  
|                              |                                                                | (In thousands) |      
|Balance at September 30, 2002 |                                                                |                | 6,721 |     |            | $ | 7 |          |  | $ | 41,241       |     |  | $        | (4 | ) |       | $ | (22,421 | )      |   | $ | 18,823 |       
|                              | Net loss                                                       |                |       |    |            |   |   |         |  |   |              |    |  |          |    |  |       |   |         | (2,397 | ) |   |        | (2,397 | )
|                              |                                                                |                |       |     |            |   |   |          |  |   |              |     |  |          |    |   |       |  
|Balance at September 30, 2003 |                                                                |                | 6,721 |     |            | $ | 7 |          |  | $ | 41,241       |     |  | $        | (4 | ) |       | $ | (24,818 | )      |   | $ | 16,426 |       
|                              | Issuance of common stock under stock option plan               |                |       | 93  |            |   |   |         |  |   |              | 149 |  |          |    |   |       |   |         |        |   |   |        | 149    |  
|                              | Treasury stock issued under stock plans                        |                |       |     |            |   |   |          |  |   |              |     |  |          |    | 3 |       |   |         | (1     | ) |   |        | 2      |  
|                              | Net income                                                     |                |       |     |            |   |   |          |  |   |              |     |  |          |    |   |       |   |         | 1,401  |   |   |        | 1,401  |  
|                              |                                                                |                |       |     |            |   |   |          |  |   |              |     |  |          |    |   |       |  
|Balance at September 30, 2004 |                                                                |                | 6,814 |     |            | $ | 7 |          |  | $ | 41,390       |     |  | $        | (1 | ) |       | $ | (23,418 | )      |   | $ | 17,978 |       
|                              | Issuance of common stock under stock option plan               |                |       | 159 |            |   |   |          |  |   |              | 260 |  |          |    |   |       |   |         |        |   |   |        | 260    |  
|                              | Deferred compensation related to acceleration of stock options |                |       |     |            |   |   |          |  |   |              | 68  |  |          |    |   |       |   |         |        |   |   |        | 68     |  
|                              | Net income                                                     |                |       |     |            |   |   |          |  |   |              |     |  |          |    |   |       |   |         | 145    |   |   |        | 145    |  
|                              |                                                                |                |       |     |            |   |   |          |  |   |              |     |  |          |    |   |       |  
|Balance at September 30, 2005 |                                                                |                | 6,973 |     |            | $ | 7 |          |  | $ | 41,718       |     |  | $        | (1 | ) |       | $ | (23,273 | )      |   | $ | 18,451 |       
|                              |                                                                |                |       |     |            |   |   |          |  |   |              |     |  |          |    |   |       |  



F-6



---



##### Table of Contents



EN POINTE TECHNOLOGIES, INC.





CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                   |                                                             |                                                  |        |        |        |   |        |        |       |   |        |        |        |  
|---------------------------------------------------------------------------------- | ----------------------------------------------------------- | ------------------------------------------------ | ------ | ------ | ------ | - | ------ | ------ | ----- | - | ------ | ------ | ------ | -
|                                                                                   |                                                             | Year Ended September 30,                         |       
|                                                                                   |                                                             |                                                  |       
|                                                                                   |                                                             | 2005                                             |        |        | 2004   |   |        | 2003   |      
|                                                                                   |                                                             |                                                  |        |        |        |   |        |        |      
|                                                                                   |                                                             | (In thousands)                                   |       
|Net income (loss )                                                                 |                                                             | $                                                | 145    |        |        | $ | 1,401  |        |       | $ | (2,397 | )     
|Adjustments to reconcile net income (loss) to net cash provided
    by operations: |                                                             |                                                  |        |        |        |   |        |        |       |   |        |       
|                                                                                   | Depreciation and amortization                               |                                                  |        | 1,110  |        |   |        | 1,884  |       |   |        | 1,788  |       
|                                                                                   | Gain on sale of assets                                      |                                                  |        | (22    | )      |   |        |        |       |   |        |        |       
|                                                                                   | Amortization of option expense                              |                                                  |        | 68     |        |   |        |       |       |   |        |       |       
|                                                                                   | Amortization of deferred gain from sale-leaseback           |                                                  |        | (330   | )      |   |        |       |       |   |        |       |       
|                                                                                   | Allowance for doubtful accounts                             |                                                  |        | 255    |        |   |        | 145    |       |   |        | 199    |       
|                                                                                   | Allowance (reduction) for returns and other allowances      |                                                  |        |       |        |   |        | 91     |       |   |        | 70     |       
|                                                                                   | Allowance (reduction) for inventory obsolescense            |                                                  |        | 20     |        |   |        | 38     |       |   |        | 169    |       
|                                                                                   | Loss reversal income from affiliates                        |                                                  |        |       |        |   |        |       |       |   |        | (143   | )     
|                                                                                   | Minority interest in loss of subsidiary                     |                                                  |        | (393   | )      |   |        | (136   | )     |   |        |       |       
|Changes in operating assets and liabilities:                                       |                                                             |                                                  |        |        |        |   |        |        |       |   |        |       
|                                                                                   | Restricted cash                                             |                                                  |        | (1     | )      |   |        |       |       |   |        |       |       
|                                                                                   | Accounts receivable                                         |                                                  |        | (9,067 | )      |   |        | 3,407  |       |   |        | (3,644 | )     
|                                                                                   | Inventories                                                 |                                                  |        | (3,282 | )      |   |        | (1,397 | )     |   |        | (228   | )     
|                                                                                   | Recoverable taxes                                           |                                                  |        |       |        |   |        |       |       |   |        | 1,800  |       
|                                                                                   | Prepaid expenses and other current assets                   |                                                  |        | (186   | )      |   |        | 215    |       |   |        | 200    |       
|                                                                                   | Other assets                                                |                                                  |        | (37    | )      |   |        | 129    |       |   |        | 60     |       
|                                                                                   | Accounts payable, trade                                     |                                                  |        | 4,473  |        |   |        | 1,329  |       |   |        | 2,782  |       
|                                                                                   | Accrued expenses                                            |                                                  |        | 257    |        |   |        | (622   | )     |   |        | 718    |       
|                                                                                   | Accrued taxes and other liabilities and deferred income     |                                                  |        | 1,548  |        |   |        | (233   | )     |   |        | (411   | )     
|                                                                                   |                                                             |                                                  |        |        |        |   |        |        |      
|                                                                                   |                                                             | Net cash (used) provided by operating activities |        |        | (5,442 | ) |        |        | 6,251 |   |        |        | 963    |  
|                                                                                   |                                                             |                                                  |        |        |        |   |        |        |      
|                                                                                   | Acquisition of business                                     |                                                  |        | (878   | )      |   |        |       |       |   |        | (921   | )     
|                                                                                   | Proceeds from sale of assets                                |                                                  |        | 154    |        |   |        |       |       |   |        |       |       
|                                                                                   | Purchase of property and equipment                          |                                                  |        | (1,999 | )      |   |        | (765   | )     |   |        | (227   | )     
|                                                                                   |                                                             |                                                  |        |        |        |   |        |        |      
|                                                                                   |                                                             | Net cash used by investing activities            |        |        | (2,723 | ) |        |        | (765  | ) |        |        | (1,148 | )
|                                                                                   |                                                             |                                                  |        |        |        |   |        |        |      
|                                                                                   | Net (repayments) borrowings under lines of credit           |                                                  |        | (1,485 | )      |   |        | 6,983  |       |   |        | (1,095 | )     
|                                                                                   | Payment on notes payable                                    |                                                  |        | (164   | )      |   |        | (210   | )     |   |        | (131   | )     
|                                                                                   | Net proceeds from sale of common stock under employee plans |                                                  |        | 260    |        |   |        | 151    |       |   |        |       |       
|                                                                                   | Capital contributed by minority interest                    |                                                  |        | 385    |        |   |        | 444    |       |   |        |       |       
|                                                                                   |                                                             |                                                  |        |        |        |   |        |        |      
|                                                                                   |                                                             | Net cash (used) provided by financing activities |        |        | (1,004 | ) |        |        | 7,368 |   |        |        | (1,226 | )
|                                                                                   |                                                             |                                                  |        |        |        |   |        |        |      
|(Decrease) increase in cash                                                        |                                                             |                                                  | (9,169 | )      |        |   | 12,854 |        |       |   | (1,411 | )     
|Cash at beginning of year                                                          |                                                             |                                                  | 16,072 |        |        |   | 3,218  |        |       |   | 4,629  |       
|                                                                                   |                                                             |                                                  |        |        |        |   |        |        |      
|Cash at end of year                                                                |                                                             | $                                                | 6,903  |        |        | $ | 16,072 |        |       | $ | 3,218  |       
|                                                                                   |                                                             |                                                  |        |        |        |   |        |        |      
|Supplemental disclosures of cash flow information:                                 |                                                             |                                                  |        |        |        |   |        |        |       |   |        |       
|                                                                                   | Interest paid                                               |                                                  | $      | 260    |        |   | $      | 750    |       |   | $      | 917    |       
|                                                                                   |                                                             |                                                  |        |        |        |   |        |        |      
|                                                                                   | Income taxes (refunded)                                     |                                                  | $      | 215    |        |   | $      |       |       |   | $      | (1,958 | )     
|                                                                                   |                                                             |                                                  |        |        |        |   |        |        |      
|Supplemental schedule of non-cash financing and investing
    activities:          |                                                             |                                                  |        |        |        |   |        |        |       |   |        |       
|                                                                                   | Capitalized lease                                           |                                                  | $      | 1,009  |        |   | $      | 69     |       |   | $      | 133    |       
|                                                                                   |                                                             |                                                  |        |        |        |   |        |        |      



F-7



---



##### Table of Contents





|  |                                                                
|- | ---------------------------------------------------------------
|1 | Organization and Summary of Significant Accounting
    Policies



| |             
| | ------------
| | Organization





| |                                
| | -------------------------------
| | Liquidity and Capital Resources

day-to








| |                            
| | ---------------------------
| | Principles of Consolidation



F-8



---



##### Table of Contents





| |                                
| | -------------------------------
| | Investment in Premier PBO, Inc.















|                                                               |  |                          |       |  |      |   |       |      |  |   |     | 
|-------------------------------------------------------------- |  | ------------------------ | ----- |  | ---- | - | ----- | ---- |  | - | --- | 
|                                                               |  | Year Ended September 30, |      
|                                                               |  |                          |      
|                                                               |  | 2005                     |       |  | 2004 |   |       | 2003 | 
|                                                               |  |                          |       |  |      |   |       |      | 
|Business transactions with Ovex                                |  | $                        | 2,175 |  |      | $ | 1,758 |      |  | $ | 500 | 
|                                                               |  |                          |       |  |      |   |       |      | 
|Outstanding balances at fiscal year end due to/(due from) Ovex |  | $                        | 41    |  |      | $ | (30   | )    |  | $ |    | 
|                                                               |  |                          |       |  |      |   |       |      | 

F-9



---



##### Table of Contents





|                                    |                                         |               |     |      |      |   |     |      |  
|----------------------------------- | --------------------------------------- | ------------- | --- | ---- | ---- | - | --- | ---- | -
|                                    |                                         | Year Ended    |    
|                                    |                                         | September 30, |    
|                                    |                                         |               |    
|                                    |                                         | 2005          |     |      | 2004 |  
|                                    |                                         |               |     |      |      |  
|Beginning minority interest balance |                                         | $             | 308 |      |      | $ |    |     
|                                    | Loan conversion to preferred stock      |               |     | 603  |      |   |     |     |  
|                                    | Private stock offering                  |               |     | 385  |      |   |     | 444  |  
|                                    | Loss allocated to minority shareholders |               |     | (393 | )    |   |     | (136 | )
|                                    |                                         |               |     |      |      |  
|Ending minority interest balance    |                                         | $             | 903 |      |      | $ | 308 |     
|                                    |                                         |               |     |      |      |  



| |                                                
| | -----------------------------------------------
| | Former Investments in Unconsolidated Affiliates







| |                 
| | ----------------
| | Use of Estimates





| |                    
| | -------------------
| | Revenue Recognition







F-10



---



##### Table of Contents









| |                          
| | -------------------------
| | Cash and Cash Equivalents





| |                
| | ---------------
| | Restricted Cash





| |            
| | -----------
| | Inventories





| |                       
| | ----------------------
| | Property and Equipment



Position 98-1 (SOP 98-1),




F-11



---



##### Table of Contents







| |                                    
| | -----------------------------------
| | Fair Value of Financial Instruments





| |                                
| | -------------------------------
| | Impairment of Long-Lived Assets





| |                               
| | ------------------------------
| | Goodwill and Intangible Assets







F-12



---



##### Table of Contents









sum-of




| |                                            
| | -------------------------------------------
| | Advertising and Shipping and Handling Costs





| |             
| | ------------
| | Income Taxes





| |                                                                 
| | ----------------------------------------------------------------
| | Concentration of Credit Risk and Major Customers and
    Vendors



F-13



---



##### Table of Contents





|               |  |                                                   |   |  |             |  |   |       |  |  |             |   |  |       |    |   |             |  |   |  |  |  |   | 
|-------------- |  | ------------------------------------------------- | - |  | ----------- |  | - | ----- |  |  | ----------- | - |  | ----- | -- | - | ----------- |  | - |  |  |  | - | 
|               |  | Years Ended September 30, and as of September 30, |  
|               |  |                                                   |  
|               |  | 2005                                              |   |  | 2004        |  |   | 2003  | 
|               |  |                                                   |   |  |             |  |   |       | 
|               |  | % Net                                             |   |  | % Trade     |  |   | % Net |  |  | % Trade     |   |  | % Net |    |   | % Trade     | 
|               |  | Sales                                             |   |  | Receivables |  |   | Sales |  |  | Receivables |   |  | Sales |    |   | Receivables | 
|               |  |                                                   |   |  |             |  |   |       |  |  |             |   |  |       |    |   |             | 
|Major customer |  |                                                   |  |  |             |  |  |       |  |  | 11          | % |  |       | 10 | % |             |  |  |  |  |  |  | 
|               |  |                                                   |   |  |             |  |   |       |  |  |             |   |  |       |    |   |             | 









| |               
| | --------------
| | Treasury Stock





| |                         
| | ------------------------
| | Stock Based Compensation









F-14



---



##### Table of Contents











|                                          |                                                                                                         |                                 |        |       |      |   |       |      |   |   |        |       |  
|----------------------------------------- | ------------------------------------------------------------------------------------------------------- | ------------------------------- | ------ | ----- | ---- | - | ----- | ---- | - | - | ------ | ----- | -
|                                          |                                                                                                         | Fiscal Year Ended September 30, |       
|                                          |                                                                                                         |                                 |       
|                                          |                                                                                                         | 2005                            |        |       | 2004 |   |       | 2003 |  
|                                          |                                                                                                         |                                 |        |       |      |   |       |      |  
|Net income (loss) as reported             |                                                                                                         | $                               | 145    |       |      | $ | 1,401 |      |   | $ | (2,397 | )    
|                                          | Stock based compensation cost, net of related tax effects, using
    the fair value method of reporting |                                 |        | (868  | )    |   |       | (684 | ) |   |        | (769  | )
|                                          | Effect of acceleration of unvested stock options                                                        |                                 |        | (581  | )    |   |       |     |   |   |        |      |  
|                                          |                                                                                                         |                                 |        |       |      |   |       |      |  
|Pro forma net (loss) income               |                                                                                                         | $                               | (1,304 | )     |      | $ | 717   |      |   | $ | (3,166 | )    
|                                          |                                                                                                         |                                 |        |       |      |   |       |      |  
|Basic earnings (loss) per common share:   |                                                                                                         |                                 |        |       |      |   |       |      |   |   |        |      
|                                          | As reported                                                                                             |                                 | $      | 0.02  |      |   | $     | 0.21 |   |   | $      | (0.36 | )
|                                          |                                                                                                         |                                 |        |       |      |   |       |      |  
|                                          | Pro forma                                                                                               |                                 | $      | (0.19 | )    |   | $     | 0.11 |   |   | $      | (0.47 | )
|                                          |                                                                                                         |                                 |        |       |      |   |       |      |  
|Diluted earnings (loss) per common share: |                                                                                                         |                                 |        |       |      |   |       |      |   |   |        |      
|                                          | As reported                                                                                             |                                 | $      | 0.02  |      |   | $     | 0.20 |   |   | $      | (0.36 | )
|                                          |                                                                                                         |                                 |        |       |      |   |       |      |  
|                                          | Pro forma                                                                                               |                                 | $      | (0.18 | )    |   | $     | 0.10 |   |   | $      | (0.47 | )
|                                          |                                                                                                         |                                 |        |       |      |   |       |      |  

F-15



---



##### Table of Contents





| |                
| | ---------------
| | Vendor Programs

No. 02-16,






| |                   
| | ------------------
| | Earnings per Share





| |                     
| | --------------------
| | Comprehensive Income





| |                  
| | -----------------
| | Segment Reporting







| |                                 
| | --------------------------------
| | Recent Accounting Pronouncements



F-16



---



##### Table of Contents











F-17



---



##### Table of Contents





|  |                       
|- | ----------------------
|2 | Property and Equipment



|                                                |  |               |        |   |      |   |        |  
|----------------------------------------------- |  | ------------- | ------ | - | ---- | - | ------ | -
|                                                |  | September 30, |       
|                                                |  |               |       
|                                                |  | 2005          |        |   | 2004 |  
|                                                |  |               |        |   |      |  
|Software under development                      |  | $             | 35     |   |      | $ | 203    |  
|Computer equipment and software                 |  |               | 9,340  |   |      |   | 7,870  |  
|Office equipment and other                      |  |               | 999    |   |      |   | 963    |  
|Warehouse equipment                             |  |               | 149    |   |      |   |       |  
|Leasehold improvements                          |  |               | 466    |   |      |   | 439    |  
|Capitalized leases (see Note 7)                 |  |               | 1,211  |   |      |   | 5,279  |  
|                                                |  |               |        |   |      |  
|                                                |  |               | 12,200 |   |      |   | 14,754 |  
|Less: Accumulated depreciation and amortization |  |               | (9,130 | ) |      |   | (9,407 | )
|                                                |  |               |        |   |      |  
|                                                |  | $             | 3,070  |   |      | $ | 5,346  |  
|                                                |  |               |        |   |      |  





|  |                
|- | ---------------
|3 | Lines of Credit











| |                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. EBITDA must be sufficient to cover a multiple of 1.25
    times interest expense for a rolling twelve month period ending
    on the last day of each fiscal quarter.
|
| | 2. Tangible net worth and subordinated debt must equal or
    exceed $14.0 million.                                                                                     
|
| | 3. The ratio of debt minus subordinated debt to tangible
    net worth and subordinated debt must not exceed 3.5 to one.                                                
|
| | 4. The ratio of current tangible assets to current
    liabilities must not be less than 1.2 to one.                                                                    



F-18



---



##### Table of Contents







|  |                
|- | ---------------
|4 | Special Charges





|  |             
|- | ------------
|5 | Other Income





|  |                      
|- | ---------------------
|6 | Employee Benefit Plan





|  |             
|- | ------------
|7 | Income Taxes



|         |         |               |    |    |      |  |     |      |  |  |   |   | 
|-------- | ------- | ------------- | -- | -- | ---- |  | --- | ---- |  |  | - | - | 
|         |         | Year Ended   
|         |         | September 30,
|         |         |              
|         |         | 2005          |    |    | 2004 |  |     | 2003
|         |         |               |    |    |      |  |     |     
|Current: |         |               |    |    |      |  |     |      |  |  |   |  
|         | Federal |               | $  | 13 |      |  | $   | 38   |  |  | $ |  | 
|         | State   |               |    | 8  |      |  |     | 93   |  |  |   |  | 
|         |         |               |    |    |      |  |     |      | 
|         |         |               | 21 |    |      |  | 131 |      |  |  |  |  
|         |         |               |    |    |      |  |     |      | 



|                                     |  |               |      |   |      |  |     |      |  |  |     |   
|------------------------------------ |  | ------------- | ---- | - | ---- |  | --- | ---- |  |  | --- | --
|                                     |  | Year Ended    |     
|                                     |  | September 30, |     
|                                     |  |               |     
|                                     |  | 2005          |      |   | 2004 |  |     | 2003 | 
|                                     |  |               |      |   |      |  |     |      | 
|Federal statutory rate               |  |               | 35   | % |      |  | 35  | %    |  |  | (35 | )%
|State taxes, net of federal benefits |  |               | 5    |   |      |  | 4   |      |  |  | 2   |   
|Expenses not deductible              |  |               | 23   |   |      |  | 2   |      |  |  |    |   
|Losses providing no tax benefits*    |  |               | 312  |   |      |  | 26  |      |  |  |    |   
|Minority interest                    |  |               | (83  | ) |      |  | (3  | )    |  |  |    |   
|Net operating loss carryforward      |  |               | (123 | ) |      |  | (37 | )    |  |  |    |   
|Valuation allowances                 |  |               | (156 | ) |      |  | (18 | )    |  |  | 33  |   
|                                     |  |               |      |   |      |  |     |      | 
|                                     |  |               | 13   | % |      |  | 9   | %    |  |  |    | % 
|                                     |  |               |      |   |      |  |     |      | 

F-19



---



##### Table of Contents








|  |                                                                                                                                                                                                                                                   
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | The Companys consolidated return excludes PBPO because its
    investment is less than the required 80% to consolidate under
    federal tax law. Thus, none of the losses generated by PBPO are
    available for the reduction of income taxes.



|                                              |  |               |        |   |      |   |        |  
|--------------------------------------------- |  | ------------- | ------ | - | ---- | - | ------ | -
|                                              |  | September 30, |       
|                                              |  |               |       
|                                              |  | 2005          |        |   | 2004 |  
|                                              |  |               |        |   |      |  
|Deferred tax assets:                          |  |               |        |   |      |   |        |  
|Accounts receivable and allowance for returns |  | $             | 486    |   |      | $ | 706    |  
|Expenses not currently deductible             |  |               | 611    |   |      |   | 655    |  
|Depreciation                                  |  |               | 687    |   |      |   | 725    |  
|Federal net operating loss                    |  |               | 2,861  |   |      |   | 3,127  |  
|State net operating loss                      |  |               | 1,910  |   |      |   | 1,916  |  
|                                              |  |               |        |   |      |  
|                                              |  |               | 6,555  |   |      |   | 7,129  |  
|Deferred tax liabilities                      |  |               |       |   |      |   |       |  
|                                              |  |               |        |   |      |  
|Net deferred tax asset                        |  |               | 6,555  |   |      |   | 7,129  |  
|Valuation allowance                           |  |               | (6,555 | ) |      |   | (7,129 | )
|                                              |  |               |        |   |      |  
|Deferred tax liability                        |  | $             |       |   |      | $ |       |  
|                                              |  |               |        |   |      |  



|                  |      |                |            |            |       |      |  |  |      | 
|----------------- | ---- | -------------- | ---------- | ---------- | ----- | ---- |  |  | ---- | 
|                  |      |                |            | Expiration |      
|Year NOL Incurred |      |                | NOL Amount |            |       | Date | 
|                  |      |                |            |            |       |      | 
|                  |      | (In thousands) |            |            |      
|                  | 2000 |                |            | $          | 2,241 |      |  |  | 2020 | 
|                  | 2002 |                |            |            | 4,049 |      |  |  | 2022 | 
|                  | 2003 |                |            |            | 1,832 |      |  |  | 2023 | 
|                  |      |                |            |            |       |      | 
|                  |      |                |            | $          | 8,122 |      |  |  |      | 
|                  |      |                |            |            |       |      | 



F-20



---



##### Table of Contents





|  |                                                        
|- | -------------------------------------------------------
|8 | Long-Term Liabilities and Commitments and Contingencies



|                                  |           |                              |   |       |             |   |      |     |       | 
|--------------------------------- | --------- | ---------------------------- | - | ----- | ----------- | - | ---- | --- | ----- | 
|                                  |           | Minimum Lease                |   |       | Capitalized |  
|                                  |           | Payments                     |   |       | Leases      |  
|                                  |           |                              |   |       |             |  
|                                  | 2006      |                              | $ | 1,617 |             |   | $    | 455 |      
|                                  | 2007      |                              |   | 386   |             |   |      | 377 |      
|                                  | 2008      |                              |   | 76    |             |   |      | 257 |      
|                                  |           |                              |   |       |             |  
|                                  |           | Total minimum lease payments |   | $     | 2,079       |   |      |     | 1,089 | 
|                                  |           |                              |   |       |             |  
|Less amount representing interest |           |                              |   |       |             |   | (106 | )  
|                                  |           |                              |   |       |             |  
|                                  |           |                              |   |       |             | $ | 983  |    
|                                  |           |                              |   |       |             |  
|                                  | Current   |                              |   |       |             |   |      | 400 |      
|                                  | Long-term |                              |   |       |             |   |      | 584 |      
|                                  |           |                              |   |       |             |  
|                                  |           |                              |   |       |             | $ | 983  |    
|                                  |           |                              |   |       |             |  



normal leaseback








F-21



---



##### Table of Contents















|  |                                       
|- | --------------------------------------
|9 | Earnings per Share and Preferred Stock



|                                                          |                                     |                                            |       |       |      |   |       |       |     |   |        |       |   | 
|--------------------------------------------------------- | ----------------------------------- | ------------------------------------------ | ----- | ----- | ---- | - | ----- | ----- | --- | - | ------ | ----- | - | 
|                                                          |                                     | Year Ended September 30,                   |      
|                                                          |                                     |                                            |      
|                                                          |                                     | 2005                                       |       |       | 2004 |   |       | 2003  |    
|                                                          |                                     |                                            |       |       |      |   |       |       |    
|Net income (loss)                                         |                                     | $                                          | 145   |       |      | $ | 1,401 |       |     | $ | (2,397 | )    
|                                                          |                                     |                                            |       |       |      |   |       |       |    
|Denominator:                                              |                                     |                                            |       |       |      |   |       |       |     |   |        |      
|                                                          | Weighted-average shares outstanding |                                            |       | 6,866 |      |   |       | 6,737 |     |   |        | 6,720 |  
|                                                          | Effect of dilutive securities:      |                                            |       |       |      |   |       |       |     |   |        |       |  
|                                                          |                                     | Dilutive potential of options and warrants |       |       | 237  |   |       |       | 117 |   |        |       |  | 
|                                                          |                                     |                                            |       |       |      |   |       |       |    
|Weighted-average shares and share equivalents outstanding |                                     |                                            | 7,103 |       |      |   | 6,854 |       |     |   | 6,720  |      
|                                                          |                                     |                                            |       |       |      |   |       |       |    
|Basic income (loss) per share                             |                                     | $                                          | .02   |       |      | $ | .21   |       |     | $ | (.36   | )    
|                                                          |                                     |                                            |       |       |      |   |       |       |    
|Diluted income (loss) per share                           |                                     | $                                          | .02   |       |      | $ | .20   |       |     | $ | (.36   | )    
|                                                          |                                     |                                            |       |       |      |   |       |       |    



F-22



---



##### Table of Contents





|   |              
|-- | -------------
|10 | Stock Options







|                                  |           |               |         |         |           |                |         |          |   |   |       |       |  
|--------------------------------- | --------- | ------------- | ------- | ------- | --------- | -------------- | ------- | -------- | - | - | ----- | ----- | -
|                                  |           |               |         |         |           | Total Exercise |        
|                                  |           | Non-Qualified |         |         | Incentive |                |         | Value    |  
|                                  |           |               |         |         |           |                |         |          |  
|                                  |           |               |         |         |           | (In thousands) |        
|Outstanding at September 30, 2002 |           |               | 571,667 |         |           |                | 670,349 |          |   | $ | 5,043 |      
|                                  | Granted   |               |         |        |           |                |         | 236,250  |   |   |       | 295   |  
|                                  | Exercised |               |         |        |           |                |         |         |   |   |       |      |  
|                                  | Cancelled |               |         | (50,000 | )         |                |         | (95,333  | ) |   |       | (506  | )
|                                  |           |               |         |         |           |                |         |          |  
|Outstanding at September 30, 2003 |           |               | 521,667 |         |           |                | 811,266 |          |   | $ | 4,832 |      
|                                  | Granted   |               |         | 150,000 |           |                |         | 300,000  |   |   |       | 1,309 |  
|                                  | Exercised |               |         | (25,900 | )         |                |         | (67,859  | ) |   |       | (150  | )
|                                  | Cancelled |               |         | (29,100 | )         |                |         | (164,686 | ) |   |       | (734  | )
|                                  |           |               |         |         |           |                |         |          |  
|Outstanding at September 30, 2004 |           |               | 616,667 |         |           |                | 878,721 |          |   | $ | 5,257 |      
|                                  | Granted   |               |         | 250,000 |           |                |         | 25,000   |   |   |       | 575   |  
|                                  | Exercised |               |         | (46,000 | )         |                |         | (113,136 | ) |   |       | (260  | )
|                                  | Cancelled |               |         |        |           |                |         | (65,479  | ) |   |       | (306  | )
|                                  |           |               |         |         |           |                |         |          |  
|Outstanding at September 30, 2005 |           |               | 820,667 |         |           |                | 725,106 |          |   | $ | 5,266 |      
|                                  |           |               |         |         |           |                |         |          |  

|                   |  |             |           |          |                |   |           |             |  |  |      | 
|------------------ |  | ----------- | --------- | -------- | -------------- | - | --------- | ----------- |  |  | ---- | 
|                   |  |             |           | Weighted |                |   | Remaining |            
|                   |  | Options     |           |          | Average        |   |           | Contractual | 
|                   |  | Exercisable |           |          | Exercise Price |   |           | Life        | 
|                   |  |             |           |          |                |   |           |             | 
|September 30, 2003 |  |             | 803,539   |          |                | $ | 4.43      |             |  |  | 6.79 | 
|September 30, 2004 |  |             | 877,719   |          |                | $ | 3.88      |             |  |  | 6.21 | 
|September 30, 2005 |  |             | 1,545,773 |          |                | $ | 3.41      |             |  |  | 7.65 | 



|                              |  |          |   |   |            |  |           |          |  |  |          |   |  |  |     | 
|----------------------------- |  | -------- | - | - | ---------- |  | --------- | -------- |  |  | -------- | - |  |  | --- | 
|                              |  | Expected |   |   |            |  | Risk Free |          |  | 
|                              |  | Dividend |   |   | Expected   |  |           | Interest |  |  | Expected |  
|                              |  | Yield    |   |   | Volatility |  |           | Rate     |  |  | Lives    |  
|                              |  |          |   |   |            |  |           |          |  |  |          |  
|Year ended September 30, 2003 |  |          | 0 | % |            |  | 98        | %        |  |  | 2.54     | % |  |  | 5.0 | 
|Year ended September 30, 2004 |  |          | 0 | % |            |  | 101       | %        |  |  | 3.10     | % |  |  | 5.0 | 
|Year ended September 30, 2005 |  |          | 0 | % |            |  | 105       | %        |  |  | 3.35     | % |  |  | 5.0 | 

F-23



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##### Table of Contents





|   |                    
|-- | -------------------
|11 | Employee Stock Plan





|   |                          
|-- | -------------------------
|12 | Acquisition of Businesses







|                                               |                   |   |     |     | 
|---------------------------------------------- | ----------------- | - | --- | --- | 
|Accounts receivable                            |                   | $ | 533 |    
|Depreciable assets                             |                   |   | 57  |    
|                                               |                   |   |    
|Net assets acquired                            |                   |   | 590 |    
|Excess purchase price over net assets acquired |                   |   | 288 |    
|                                               |                   |   |    
|Purchase price                                 |                   | $ | 878 |    
|                                               |                   |   |    
|Intangible assets:                             |                   |   |     |    
|Customer relationships                         |                   |   | 200 |    
|Goodwill                                       |                   |   | 88  |    
|                                               |                   |   |    
|                                               | Total intangibles |   | $   | 288 | 
|                                               |                   |   |    



F-24



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##### Table of Contents





|                       |  |   |     | 
|---------------------- |  | - | --- | 
|Inventory              |  | $ | 76  | 
|Depreciable assets     |  |   | 145 | 
|Customer relationships |  |   | 470 | 
|Goodwill               |  |   | 230 | 
|                       |  |   |    
|                       |  | $ | 921 | 
|                       |  |   |    



sum-of sum-of




|                                   |      |       |     |     |             |   |     |       |  |   |     |     | 
|---------------------------------- | ---- | ----- | --- | --- | ----------- | - | --- | ----- |  | - | --- | --- | 
|Year Ended September 30,           |      | Tabin |     |     | Viablelinks |   |     | Total | 
|                                   |      |       |     |     |             |   |     |       | 
|Beginning accumulated amortization |      | $     | 188 |     |             | $ |    |       |  | $ | 188 |    
|                                   | 2005 |       |     | 144 |             |   |     | 67    |  |   |     | 211 | 
|                                   |      |       |     |     |             |   |     |       | 
|Ending accumulated amortization    |      | $     | 332 |     |             | $ | 67  |       |  | $ | 399 |    
|                                   |      |       |     |     |             |   |     |       | 
|                                   | 2006 |       | $   | 69  |             |   | $   | 53    |  |   | $   | 122 | 
|                                   | 2007 |       |     | 69  |             |   |     | 40    |  |   |     | 109 | 
|                                   | 2008 |       |     |    |             |   |     | 27    |  |   |     | 27  | 
|                                   | 2009 |       |     |    |             |   |     | 13    |  |   |     | 13  | 
|                                   |      |       |     |     |             |   |     |       | 
|Total future years amortization    |      | $     | 138 |     |             | $ | 133 |       |  | $ | 271 |    
|                                   |      |       |     |     |             |   |     |       | 
|Total amortization                 |      | $     | 470 |     |             | $ | 200 |       |  | $ | 670 |    
|                                   |      |       |     |     |             |   |     |       | 



F-25



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##### Table of Contents





|                                     |         |                         |         |              |                    |          |            |       |  |   |         |       |   |   |         |       |  
|------------------------------------ | ------- | ----------------------- | ------- | ------------ | ------------------ | -------- | ---------- | ----- |  | - | ------- | ----- | - | - | ------- | ----- | -
|                                     |         |                         |         | As           |                    |          |            |       | 
|                                     |         | Pro Forma               |         |              | Reported           |          |            |       |  |  
|                                     |         |                         |         |              |                    |          |            |       |  |  
|                                     |         | Years Ended             |        
|                                     |         |                         |        
|                                     |         | September 30, 2004      |         |              | September 30, 2003 |         
|                                     |         | ----------------------) |         |              |                    |         
|                                     |         |                         |         | Pro Forma    |                    |          | As         |      
|                                     |         |                         |         | -----------) |                    |          |           
|                                     |         |                         |         |              |                    | Reported |           
|                                     |         |                         |         |              |                    |          |           
|                                     |         | (Unaudited              |         |              |                    |          | (Unaudited |       |  |  
|Net sales                            |         | $                       | 300,619 |              |                    | $        | 279,234    |       |  | $ | 307,806 |       |   | $ | 289,811 |      
|Net income (loss)                    |         | $                       | 1,749   |              |                    | $        | 1,401      |       |  | $ | (1,533  | )     |   | $ | (2,397  | )    
|Net income (loss) per share:         |         |                         |         |              |                    |          |            |       |  |   |         |       |   |   |         |      
|                                     | Basic   |                         | $       | 0.26         |                    |          | $          | 0.21  |  |   | $       | (0.23 | ) |   | $       | (0.36 | )
|                                     |         |                         |         |              |                    |          |            |       |  |   |         |      
|                                     | Diluted |                         | $       | 0.26         |                    |          | $          | 0.20  |  |   | $       | (0.23 | ) |   | $       | (0.36 | )
|                                     |         |                         |         |              |                    |          |            |       |  |   |         |      
|Weighted average shares outstanding: |         |                         |         |              |                    |          |            |       |  |   |         |       |   |   |         |      
|                                     | Basic   |                         |         | 6,737        |                    |          |            | 6,737 |  |   |         | 6,720 |   |   |         | 6,720 |  
|                                     |         |                         |         |              |                    |          |            |       |  |   |         |      
|                                     | Diluted |                         |         | 6,854        |                    |          |            | 6,854 |  |   |         | 6,720 |   |   |         | 6,720 |  
|                                     |         |                         |         |              |                    |          |            |       |  |   |         |      





|   |           
|-- | ----------
|13 | Litigation







F-26



---



##### Table of Contents







|   |                                     
|-- | ------------------------------------
|14 | Quarterly Financial Data (Unaudited)



|                                    |  |                           |        |   |      |   |        |       |  |   |          |  |  |   |        | 
|----------------------------------- |  | ------------------------- | ------ | - | ---- | - | ------ | ----- |  | - | -------- |  |  | - | ------ | 
|                                    |  | Fiscal 2005 Quarter Ended |       
|                                    |  |                           |       
|                                    |  | September                 |        |   | June |   |        | March |  |   | December | 
|                                    |  |                           |        |   |      |   |        |       |  |   |          | 
|Net sales                           |  | $                         | 87,410 |   |      | $ | 92,592 |       |  | $ | 73,055   |  |  | $ | 75,275 | 
|Gross profit                        |  |                           | 9,111  |   |      |   | 9,078  |       |  |   | 7,963    |  |  |   | 8,906  | 
|Net (loss) income                   |  |                           | (349   | ) |      |   | 102    |       |  |   | 90       |  |  |   | 302    | 
|Basic net (loss) income per share   |  |                           | (.05   | ) |      |   | .01    |       |  |   | .01      |  |  |   | .04    | 
|Diluted net (loss) income per share |  |                           | (.05   | ) |      |   | .01    |       |  |   | .01      |  |  |   | .04    | 

|                             |  |                           |        |  |      |   |        |       |  |   |          |  |  |   |        | 
|---------------------------- |  | ------------------------- | ------ |  | ---- | - | ------ | ----- |  | - | -------- |  |  | - | ------ | 
|                             |  | Fiscal 2004 Quarter Ended |       
|                             |  |                           |       
|                             |  | September                 |        |  | June |   |        | March |  |   | December | 
|                             |  |                           |        |  |      |   |        |       |  |   |          | 
|Net sales                    |  | $                         | 71,495 |  |      | $ | 82,863 |       |  | $ | 61,268   |  |  | $ | 63,608 | 
|Gross profit                 |  |                           | 8,021  |  |      |   | 9,472  |       |  |   | 8,159    |  |  |   | 8,824  | 
|Net income                   |  |                           | 478    |  |      |   | 477    |       |  |   | 205      |  |  |   | 241    | 
|Basic net income per share   |  |                           | .07    |  |      |   | .07    |       |  |   | .03      |  |  |   | .04    | 
|Diluted net income per share |  |                           | .07    |  |      |   | .07    |       |  |   | .03      |  |  |   | .04    | 

|                                    |  |                           |        |  |      |   |        |       |  |   |          |   |  |   |        |  
|----------------------------------- |  | ------------------------- | ------ |  | ---- | - | ------ | ----- |  | - | -------- | - |  | - | ------ | -
|                                    |  | Fiscal 2003 Quarter Ended |       
|                                    |  |                           |       
|                                    |  | September                 |        |  | June |   |        | March |  |   | December |  
|                                    |  |                           |        |  |      |   |        |       |  |   |          |  
|Net sales                           |  | $                         | 72,211 |  |      | $ | 70,013 |       |  | $ | 72,011   |   |  | $ | 75,576 |  
|Gross profit                        |  |                           | 9,688  |  |      |   | 8,974  |       |  |   | 8,417    |   |  |   | 8,961  |  
|Net income (loss)                   |  |                           | 383    |  |      |   | (391   | )     |  |   | (1,656   | ) |  |   | (733   | )
|Basic net income (loss) per share   |  |                           | .06    |  |      |   | (.06   | )     |  |   | (.25     | ) |  |   | (.11   | )
|Diluted net income (loss) per share |  |                           | .06    |  |      |   | (.06   | )     |  |   | (.25     | ) |  |   | (.11   | )

F-27



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##### Table of Contents



EN POINTE TECHNOLOGIES, INC.





SCHEDULE II


VALUATION AND QUALIFYING ACCOUNTS


|                                              |                                   |              |       |         |             |   |     |            |  |            |        |      |   |   |       |       | 
|--------------------------------------------- | --------------------------------- | ------------ | ----- | ------- | ----------- | - | --- | ---------- |  | ---------- | ------ | ---- | - | - | ----- | ----- | 
|                                              |                                   |              |       | Charges |             |   |     |            | 
|                                              |                                   | Balance at   |       |         | (Reversals) |   |     |            |  | Balance at |       
|                                              |                                   | Beginning of |       |         | to Cost and |   |     |            |  | End of     |       
|                                              |                                   | Period       |       |         | Expenses    |   |     | Deductions |  |            | Period |     
|                                              |                                   |              |       |         |             |   |     |            |  |            |        |     
|Year Ended September 30, 2005 (in thousands): |                                   |              |       |         |             |   |     |            |  |            |        |      |   |   |       |      
|                                              | Allowance for doubtful accounts   |              | $     | 945     |             |   | $   | 255        |  |            | $      | (477 | ) |   | $     | 723   | 
|                                              | Allowance for returns             |              | $     | 99      |             |   | $   |           |  |            | $      |     |   |   | $     | 99    | 
|                                              | Allowance for inventory valuation |              | $     | 354     |             |   | $   | 20         |  |            | $      |     |   |   | $     | 374   | 
|                                              |                                   |              |       |         |             |   |     |            |  |            |        |     
|                                              |                                   | $            | 1,398 |         |             | $ | 275 |            |  | $          | (477   | )    |   | $ | 1,196 |      
|                                              |                                   |              |       |         |             |   |     |            |  |            |        |     
|Year Ended September 30, 2004 (in thousands): |                                   |              |       |         |             |   |     |            |  |            |        |      |   |   |       |      
|                                              | Allowance for doubtful accounts   |              | $     | 1,003   |             |   | $   | 145        |  |            | $      | (203 | ) |   | $     | 945   | 
|                                              | Allowance for returns             |              | $     | 99      |             |   | $   |           |  |            | $      |     |   |   | $     | 99    | 
|                                              | Allowance for inventory valuation |              | $     | 316     |             |   | $   | 38         |  |            | $      |     |   |   | $     | 354   | 
|                                              |                                   |              |       |         |             |   |     |            |  |            |        |     
|                                              |                                   | $            | 1,418 |         |             | $ | 183 |            |  | $          | (203   | )    |   | $ | 1,398 |      
|                                              |                                   |              |       |         |             |   |     |            |  |            |        |     
|Year Ended September 30, 2003 (in thousands): |                                   |              |       |         |             |   |     |            |  |            |        |      |   |   |       |      
|                                              | Allowance for doubtful accounts   |              | $     | 1,545   |             |   | $   | 269        |  |            | $      | (811 | ) |   | $     | 1,003 | 
|                                              | Allowance for returns             |              | $     | 99      |             |   | $   |           |  |            | $      |     |   |   | $     | 99    | 
|                                              | Allowance for inventory valuation |              | $     | 147     |             |   | $   | 169        |  |            | $      |     |   |   | $     | 316   | 
|                                              |                                   |              |       |         |             |   |     |            |  |            |        |     
|                                              |                                   | $            | 1,791 |         |             | $ | 438 |            |  | $          | (811   | )    |   | $ | 1,418 |      
|                                              |                                   |              |       |         |             |   |     |            |  |            |        |     

F-28



---



##### Table of Contents






SIGNATURES






| |                                 
| | --------------------------------
| | En Pointe Technologies,
    Inc.



| |     |                           
| | --- | --------------------------
| | By: | /s/ Attiazaz
    Bob Din

| |                                               
| | ----------------------------------------------
| |                                               
| | Attiazaz Bob Din,                           
| | Chairman Of The Board, Chief Executive Officer
| | and President (Principal Executive Officer)   



POWER OF ATTORNEY


Form 10-K,




|                                                 |  |                                                                                                |  |                   |  | 
|------------------------------------------------ |  | ---------------------------------------------------------------------------------------------- |  | ----------------- |  | 
|Signature                                        |  | Title                                                                                          |  | Date             
|                                                 |  |                                                                                                |  |                  
|                                                
|/s/ Attiazaz
    Bob DinAttiazaz
    Bob Din |  | Chairman of the Board, Chief Executive Officer and President
    (Principal Executive Officer) |  | December 23, 2005
|                                                
|/s/ Javed LatifJaved
    Latif                   |  | Chief Financial Officer
    (Principal Financial and Principal Accounting Officer)             |  | December 23, 2005
|                                                
|/s/ Naureen DinNaureen
    Din                   |  | Director                                                                                       |  | December 23, 2005
|                                                
|/s/ Zubair AhmedZubair
    Ahmed                 |  | Director                                                                                       |  | December 23, 2005
|                                                
|/s/ Mark BriggsMark
    Briggs                   |  | Director                                                                                       |  | December 23, 2005
|                                                
|/s/ Edward O. HunterEdward
    O. Hunter         |  | Director                                                                                       |  | December 23, 2005



---



##### Table of Contents



|                                                     |  |          |  |                   |  | 
|---------------------------------------------------- |  | -------- |  | ----------------- |  | 
|Signature                                            |  | Title    |  | Date             
|                                                     |  |          |  |                  
|                                                    
|/s/ Mansoor S. ShahMansoor
    S. Shah               |  | Director |  | December 23, 2005
|                                                    
|/s/ Timothy J.
    LilligrenTimothy
    J. Lilligren |  | Director |  | December 23, 2005



---



##### Table of Contents



INDEX TO EXHIBITS


|        |    |             |  |                                                                                                                                                                                                                                                                                                         
|------- | -- | ----------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |            
|Number  |    | Description
|        |    |            
|        | 2  | .1          |  | Agreement and Plan of Merger between the Registrant and En
    Pointe Technologies, Inc., a Texas corporation, effective
    February 29, 1996 (incorporated by reference to the same
    numbered Exhibit to the Registrants Registration Statement
    on Form S-1 filed May 8, 1996)                
|        | 3  | .1          |  | Certificate of Incorporation of Registrant (incorporated by
    reference to the same numbered Exhibit to the Registrants
    Registration Statement on Form S-1 filed May 8, 1996).                                                                                                                   
|        | 3  | .2          |  | Bylaws of Registrant (incorporated by reference to the same
    numbered Exhibit to the Registrants Registration Statement
    on Form S-1 filed May 8, 1996).                                                                                                                                         
|        | 3  | .3          |  | Certificate of Amendment to Certificate of Incorporation of
    Registrant filed May 16, 2000. (incorporated by reference
    to the same numbered Exhibit to the Registrants
    Registration Statement on Form 10-K filed January 18,
    2001).                                                     
|        | 3  | .4          |  | Certificate of Amendment to Certificate of Incorporation of
    Registrant filed May 16, 2005. (incorporated by reference
    to the same numbered exhibit to the Registrants
    Form 10-Q filed May 16, 2005).                                                                                       
|        | 4  | .3          |  | Form of Common Stock Certificate (incorporated by reference to
    the same numbered Exhibit to the Registrants Registration
    Statement on Form S-1 filed May 8, 1996).                                                                                                                             
|        | 10 | .1          |  | En Pointe Technologies, Inc. 1996 Stock Incentive Plan
    (incorporated by reference to the same numbered Exhibit to the
    Registrants Registration Statement on Form S-1 filed
    May 8, 1996).                                                                                                   
|        | 10 | .2          |  | En Pointe Technologies, Inc. Employee Stock Purchase Plan
    (incorporated by reference to the same numbered Exhibit to the
    Registrants Registration Statement on Form S-1 filed
    May 8, 1996).                                                                                                
|        | 10 | .3          |  | Form of Directors and Officers Indemnity Agreement
    (incorporated by reference to the same numbered Exhibit to the
    Registrants Registration Statement on Form S-1 filed
    May 8, 1996).                                                                                                     
|        | 10 | .5          |  | Employment Agreement between the Registrant and Attiazaz
    Bob Din, dated March 1, 1996 (incorporated by
    reference to the same numbered Exhibit to the Registrants
    Registration Statement on Form S-1 filed May 8, 1996).                                                                  
|        | 10 | .6          |  | Amended Employment Agreement between the Registrant and Attiazaz
    Bob Din, dated April 2, 1997 (incorporated by
    reference to the same numbered Exhibit to the Registrants
    Registration Statement on Form 10-K filed December 29,
    1997).                                               
|        | 10 | .18         |  | Lease dated May 1999 between U.S. Real Estate Consortium
    and the Registrant for property located at 1040 Vintage Avenue,
    Ontario, California (incorporated by reference to the same
    numbered Exhibit to the Registrants Form 10-K filed
    January 13, 2000).                             
|        | 10 | .19         |  | Lease dated April 2001 between Pacific Corporate Towers LLC and
    the Registrant for the property located at
    100 N. Sepulveda Blvd., 19th Floor, El Segundo,
    California. (incorporated by reference to the same numbered
    Exhibit to the Registrants Form 10-Q filed
    August 14, 2001).
|        | 10 | .24         |  | Assignment and License Agreement between the Registrant and
    SupplyAccess, Inc., dated September 21, 2001. (incorporated
    by reference to the same numbered Exhibit to the
    Registrants Form 10-K filed December 31, 2001).                                                                   
|        | 10 | .27         |  | Employment Agreement between the Registrant and Kevin Schatzle,
    dated March 28, 2002. (incorporated by reference to the
    same numbered exhibit to the Registrants Form 10-K
    filed December 27, 2002).                                                                                       
|        | 10 | .31         |  | Asset Purchase Agreement entered into as of October 9, 2002
    between Tabin Corporation and En Pointe Technologies Sales, Inc.
    (incorporated by reference to the same numbered exhibit to the
    Registrants Form 10-K filed December 27, 2002).                                                
|        | 10 | .33         |  | Amendment to Lease between Pacific Towers and the Registrant,
    dated April 30, 2001. (incorporated by reference to the
    same numbered exhibit to the Registrants Form 10-K
    filed December 27, 2002).                                                                                         
|        | 10 | .36         |  | Employment agreement between the Registrant and Javed Latif,
    dated March 28, 2002. (incorporated by reference to the
    same numbered exhibit to the Registrants Form 10-Q
    filed February 14, 2003).                                                                                          



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##### Table of Contents



|        |    |             |  |                                                                                                                                                                                                                                                                                                                           
|------- | -- | ----------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |            
|Number  |    | Description
|        |    |            
|        | 10 | .39         |  | Employee Leasing and Licensing Agreement by and between En
    Pointe Technologies, Inc. and En Pointe Global Services, Inc.,
    dated October 17, 2003. (incorporated by reference to the
    same numbered exhibit to the Registrants Form 10-Q
    filed May 17, 2004).                                              
|        | 10 | .41         |  | Business Financing Agreement between En Pointe Technologies,
    Inc, and GE Commercial Distribution Finance Corporation, dated
    June 25, 2004. (incorporated by reference to the same
    numbered exhibit to the Registrants Form 10-Q filed
    August 16, 2004).                                                  
|        | 10 | .42         |  | Agreement for Wholesale Financing between En Pointe
    Technologies, Inc. and GE Commercial Distribution Finance
    Corporation, dated June 25, 2004. (incorporated by
    reference to the same numbered exhibit to the Registrants
    Form 10-Q filed August 16, 2004).                                             
|        | 10 | .43         |  | Addendum to Business Financing Agreement and Agreement for
    Wholesale Financing between En Pointe Technologies, Inc. and GE
    Commercial Distribution Finance Corporation, dated June 25,
    2004. (incorporated by reference to the same numbered exhibit to
    the Registrants Form 10-Q filed August 16, 2004).
|        | 10 | .44         |  | Addendum to Business Financing Agreement and Agreement for
    Wholesale Financing between En Pointe Technologies, Inc. and GE
    Commercial Distribution Finance Corporation, dated July 27,
    2004. (incorporated by reference to the same numbered exhibit to
    the Registrants Form 10-Q filed August 16, 2004).
|        | 10 | .45         |  | Asset Purchase Agreement entered into as of October 1, 2004
    between Viablelinks, Inc. and En Pointe Technologies Sales, Inc.
    (incorporated by reference to the same numbered exhibit to the
    Registrants Form 10-Q filed February 14, 2005).                                                                  
|        | 10 | .46         |  | Subscription Agreement dated March 18, 2005 between Premier
    BPO Inc. and En Pointe Technologies, Inc. (incorporated by
    reference to the same numbered exhibit to the Registrants
    Form 10-Q filed May 16, 2005).                                                                                              
|        | 10 | .47         |  | Amended Employment Agreement between the Registrant and Attiazaz
    Bob Din, dated October 1, 2005 (incorporated by
    reference to Exhibit 99.1 to the Registrants
    Form 8-K filed on November 18, 2005.                                                                                                         
|        | 21 | .1          |  | Subsidiaries of the Company.                                                                                                                                                                                                                                                                                              
|        | 23 | .1          |  | Consent of BDO Seidman, LLP.                                                                                                                                                                                                                                                                                              
|        | 23 | .2          |  | Consent of PricewaterhouseCoopers LLP.                                                                                                                                                                                                                                                                                    
|        | 31 | .1          |  | Certification of the Chief Executive Officer, as required by
    Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act
    of 1934, as amended.                                                                                                                                                                      
|        | 31 | .2          |  | Certification of the Chief Financial Officer, as required by
    Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act
    of 1934, as amended.                                                                                                                                                                      
|        | 32 | .1          |  | Certification of the Chief Executive Officer, as required by
    Rule 13a-14(b) or 15d-14(b) of the Securities Exchange Act
    of 1934, as amended, and 18 U.S.C. Section 1350.                                                                                                                                          
|        | 32 | .2          |  | Certification of the Chief Financial Officer, as required by
    Rule 13a-14(b) or 15d-14(b) of the Securities Exchange Act
    of 1934, as amended, and 18 U.S.C. Section 1350.