FIRST:

The alleges the following``

``complaint which alleges breaches of contract, unjust enrichment, breaches of good faith and fair dealing, fraud, negligent misrepresentation, and interference with prospective economic relations.

This is exactly what EDIG`S Complaint against digEcor will look like. digEcor just jumped the gun to be first into a forum they like, THIRD DISTRICT COURT in Salt Lake City, Utah...

This is nonsense. The case will end up in Federal Court`s

because of DIVERSITY issue, and as soon as EDIG files their cross complaint together with a Motion for removal...

Some District Judge sitting in a County Courthouse in Salt Lake City has no power to issue an INJUNCTION against EDIG, stopping them from selling their DRM to anyone else,(like the English Grocery Chain, MESSO), till after 2009, even assuming a case for INJUNCTION was made...

EDIG is right. The complaint has no merrit, and EDIG should be able to get Attorney`s fees and costs for defending against such a sham complaint. Particularly, if

it turns out,as what EDIG has been saying all along,it was

a was a digEcor rep.s visit to Maycam plant in January, that initiated the set of events leading to Maycam`s inability to deliver on the 1200+ ORDER of digEplayers...

digEcor is seeking, among other things, an injunction to prevent e.Digital from selling or licensing certain digital rights management (DRM) technology “to any other party besides digEcor” and “from engaging in any competition with digEcor until after 2009.”...

SECOND:...

digEcor is also seeking “actual damages” of $793,750 and “consequential damages...not less than an additional $1,000,000.” e.Digital believes this action is related to the purchase order we placed in the normal course of our business on November 11, 2005 for 1250 digEplayers™ with our contract manufacturer, Maycom Co., Ltd. (“Maycom”). Maycom was paid progress payments with final payments made in full for the order by e.Digital, and directly by digEcor, in March 2006.

The damages sought against EDIG are also BOW`S day dream...

Even assuming some breach can be shown on part of EDIG, the

loss should be covered against Maycam as EDIG says...

As it turns out, this was all ``Much Ado About Nothing``...

Mr. BOW is really freaked out to go this route. He is seeing his strategy of Hard Arming Edig has failed and he

is trying to save face with his Board by filing frivolous

law suits...

Gil...