Anandpura continued, “While we are experiencing increasing market growth and demand for secure versions of our DVAP, OEM business initiatives for consumer electronics-based versions of our players for the retail market have been mostly unsuccessful due to: the lack of desirable, legal, easy-to-download video content; very limited consumer acceptance of hard-drive based portable video players; our limited financial resources; and Apple’s dominance of the music player market.”

“From Apple, other companies, and our own experience, we have learned that good hardware by itself without either pre-loaded or easily accessible, desirable content will probably not be successful. Consequently, we have refined our business focus by aligning our secure DVAP with customers who share our vision of combining desirable, easily accessible video content with their branding of closed system e.Digital-powered devices.”

“While we are successfully supplying versions of our DVAP to the in flight entertainment (IFE) industry through APS/Wencor, we are also currently working with companies who desire to sell or lease branded, closed system video entertainment products based on our DVAP into the following markets:

• Healthcare

• Cruise lines

• Car rentals

• Kiosk-based businesses

“With the smaller screen, Kino™ version of our DVAP currently targeted for customers in kiosk-based businesses, we are moving to exploit the growing market for secure closed system video products by developing a new DVAP based on a powerful new processor providing significantly more functionality and feature sets than available in our current DVAP,” announced Anandpura.