ELU Accelerated Return Notes Linked TO The Phlx Semiconductor Index

eLinear, Inc. (AMEX:ELU) ("eLinear" or the "Company") continues to make progress in relation to resolving the issues surrounding the Securities and Exchange Commission's comments regarding the Company's application for the registration of the shares underlying its July 2005 financing. The Company has commissioned an independent third party financial valuation of the embedded derivative features associated with the warrants issued pursuant to the Company's 2004 and 2005 financings and anticipates completion of the re-filings with the SEC by mid-February. Once these filings are made and accepted by the SEC, eLinear will then be able to release amended financial statements. The Company continues to be in contact with the American Stock Exchange and believes it is current in its communications. Management does not anticipate any delisting proceedings in relation to this matter and anticipates the American Stock Exchange will respond to the Company's request for an extension by Monday, January 9. The Company has requested an extension from the American Stock Exchange that parallels the updated timeline required by the independent consultancy retained to complete the valuation necessary for eLinear to complete its amended filings and its dealings with the SEC. Mike Hardy, Chief Financial Officer of eLinear, stated, "Our intent is to continue our active dialog with the SEC, the American Stock Exchange and the public investment community. We are making good progress in addressing these outstanding issues and we are confident that eLinear will regain "in compliance" status with the American Stock Exchange upon completion of the SEC process. The Amex is aware of our situation and is in the process of responding to our request for an extension of our compliance cut-off date to reflect the reality imposed on us by this SEC process." 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 please visit www.elinear.com or www.sec.gov. 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.