eLinear Solutions Awarded $600,000 IP Telephony Project for Goodman Family of Builders

Business Wire, June 7, 2005

HOUSTON -- eLinear, Inc. (AMEX:ELU) announced today that it and its wholly-owned subsidiary, eLinear Solutions, have been awarded nearly a $600,000 project to deploy IP Telephony to the corporate headquarters and approximately 65 remote sites for Goodman Family of Builders.

Based in the Dallas Fort Worth Metroplex since 1978, Goodman has consistently been rated as one of the top referred builders by homebuyers and realtors. Acquired by Hovnanian Enterprises, Inc. (NYSE:HOV), a nationally recognized homebuilding company, Goodman is now a part of one of the top 10 builders in the nation. Founded in 1959, Hovnanian Enterprises, Inc. designs, constructs and markets a variety of for-sale housing in more than 275 residential communities in 15 states. Hovnanian ranks among the largest homebuilding companies in the U.S., with total revenues of $4.2 billion on 14,586 home deliveries in fiscal 2004.

Mike Lewis, Chief Executive Officer & President of eLinear, stated, "This is a great new customer and project win for eLinear Solutions. We are very excited to be able to provide a comprehensive IP Telephony solution to Goodman Family of Builders, and view the project with this multi-billion dollar customer as a first step in building a long-term partnering relationship."

eLinear previously announced guidance of revenues in the $32,000,000 to $36,000,000 range for fiscal 2005 and targets reaching operating profitability during the fourth quarter of 2005. This newly announced business will be realized in the second quarter of 2005.

About eLinear, Inc.

eLinear, Inc. is a communications, security and compliance company providing integrated technology solutions including information and physical security, IP Telephony and network and storage solutions infrastructure. Typically, the company's customers are Fortune 2000 and small to medium sized business organizations. eLinear's services are offered to companies seeking to increase productivity or reduce costs through investing in technology. eLinear has a national and international footprint and has its headquarters in Houston, Texas. 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 and eLinear's Q1 2005 Report filed with the SEC on May 20, 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.