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eLinear, Inc. (AMEX:ELU) announced today that it has finalized a purchase agreement for a 51% stake in a joint venture with a Dubai investment group, Jalnada General Trading LLC. The Dubai investment group will provide eLinear Solutions with a location within Dubai's highly coveted Internet City tax free zone. Additionally, the investment group will provide a regional network of customers and will infuse $300,000 in working capital into the newly formed joint venture which will be known as eLinear Solutions Middle East. The joint venture will be operated under the management and direction of eLinear Solutions. The joint venture's purpose is to deliver eLinear Solutions' suite of services in Dubai, the rest of the UAE, Qatar, Jordan, Lebanon, Oman, Saudi Arabia and several other nations in the Middle East. In exchange for its 51% majority stake, eLinear will issue approximately 350,000 shared of restricted shares that must be held for a one year period. Michael Lewis, President & Chief Executive Officer of eLinear, stated, "We are very excited by the opportunity we have to take a leading position in delivering infrastructure and technology solutions in the Middle East. There are already numerous opportunities for eLinear Solutions' offerings in our Middle East pipeline. With the current price of oil, many of the governments and the corporations doing business in the Middle East are focused on upgrading their information technology infrastructures in order to better position themselves for the rapidly increasing number of international business opportunities that have sprung up all around the region." Ramzi Nassar, Chief Strategy Officer of eLinear, added, "We participated in the GITEX conference roughly a month ago in Dubai. GITEX is one of the top 3 IT conferences worldwide. We walked away from it with a healthy pipeline that we believe will contribute, at a minimum, several million dollars to eLinear's revenues in 2006. We view Dubai today as Hong Kong 20 years ago...an exciting and blooming gateway to a region that is showing explosive growth." About Dubai Dubai has earned its reputation as a pre-eminent commercial centre with an innovative, dynamic and entrepreneurial business culture. Strategically located at the crossroads of trade and commerce between East and West, it is ideally positioned to service and access markets that span the Middle East, North and Southern Africa, the Indian Subcontinent and the Confederation of Independent States. Moreover, it occupies a time zone that allows it to connect markets as disparate as the Far East and the US. To leverage this advantage, it has developed a world-class infrastructure, air and port facilities, making it the most well-connected city in the region. Politically stable, Dubai has a forward-looking, responsive government with a progressive, pro-business attitude and a strong commitment to the private sector. Business-friendly regulations and a favorable tax and customs framework have played a key role in attracting business investment from all over the world in almost every sphere of economic activity. Strong economic indicators and a relatively low cost work environment have contributed to its rapid development and prosperity. A modern, safe, multi-cultural city with state-of-the-art medical, education, entertainment, shopping and sports facilities that ensure a high quality of life, Dubai is the location of choice for the modern professional and an ideal location for multinationals to establish a regional presence. About eLinear, Inc. eLinear, Inc. is a communications, security and compliance company providing integrated technology solutions including information and physical security, IP Telephony and network and storage solutions infrastructure. Typically, the company's customers are Fortune 2000 and small to medium sized business organizations. eLinear's services are offered to companies seeking to increase productivity or reduce costs through investing in technology. eLinear has a national and international footprint and has its headquarters in Houston, Texas. For more information, see http://www.elinear.com. Safe Harbor Statement This press release contains statements that may constitute forward-looking statements, including the company's ability to realize the projected revenues from the newly announced project orders and the future strength of the company's business and industry. These statements are based on current expectations and assumptions and involve a number of uncertainties and risks that could cause actual results to differ materially from those currently expected. For additional information about eLinear's future business and financial results, refer to eLinear's Annual Report on Form 10-KSB for the year ended December 31, 2004, which was filed with the SEC on March 18, 2005, eLinear's Q1 2005 Report filed with the SEC on May 20, 2005 and eLinear's Q2 2005 Report filed with the SEC on August 12, 2005. eLinear undertakes no obligation to update any forward-looking statement that may be made from time to time by or on behalf of the company, whether as a result of new information, future events or otherwise.