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Message: More to come...

More to come...

posted on Aug 04, 2007 02:16PM

I asked RP about revenue and if we were to expect more than have been announced....There will be 2 million this quarter already announced and additional "orders have been taken but not shipped yet but will be next quarter" He stated EDig has customers not announced as yet because they do not have permission from those companies to do so as yet. This has been their philosophy all along.

I asked if Lufthansa was "one of the largest airlines in the world customer" that was spoken of in prior announcements. He said "yes" I asked if there were any more, he said "we are working with an as yet unannounced European that is one of the largest airlines on that continent.

I asked him how Mezzo felt about this and were any untold feelings happening because of EDig direct dealing with potenial Mezzo customers. He said "none at all" Mezzo was told UPFRONT that EDig would be doing what it would be doing. He also said there is no compettion between EDig and Mezzo because Mezzo's market is different.

Mezzo is going after the smaller airlines that can use it's "complete service" so the airline doesn't have to "do anything" to enjoy having an IFE aboard its aircraft. Whereas EDig's customers have the personal to handle the distribution of the eVu's etc.... In fact there are airlines out there, and I think Lufthansa is one of them but not sure, who have other brand name IFE devices that are ordering eVu's to fill in. I was rather surprised to hear that since I assumed when and airline signed up for a particular IFE device that was that. Not so....There are eVu's on a number of airlines with other IFE's

I asked what the selling price of the eVu was. And LL this is where I feel you might have to change your mind just a teeny bit since RP would never answer this question the past and I didn't think he would answer it now and was surprised when he did. The figure is $1,300 per unit with a "substantial" margin. He would not tell me that figure but I got the impression it was over 50%.

That is not where EDig's profit stops however. The airline has its choice of numerous options. Battery chargers, how many? Profit to EDig. Content refreshment, big profit to EDig. Repair, profit to EDig. So the figure of $1,300 is NOT what each eVu can bring to EDig's bottom line.

And by the way EDig does all it's own "content refreshment" but hires other companies who do nothing but, repairing devices. There are not a lot of EDig employees running around doing all this.

EDig has also NEVER used it's "financial partner" It has no need. All it's sales of the eVu have been direct cash sales. Deposit up front, payment when delivered.

I asked about Alaska Airlines and Wencor and how that worked with BOW screwing up all over the place. He said he did not know but did know that he thought BOW did not have much to do with any Alaska at all since Alaska BOUGHT it's Digeplayers outright, services them and refreshes it own content.

I asked if that might bring Alaska in play. He said it could but due to the ongoing Wencor problems there were no ongoing discussions about replacing the DP's with the eVu's although he was certain Alaska was very aware of the who made the DP's in the first place and the availability of the eVu's.

And for those of you wondering about the ongoing EDig vs BOW, RP said to expect to hear something from the court in the next 2-3 weeks. I asked him what his opinion on it was and he said Wencor's entire case was wrapped around one thing. HERE I APOLOGIZE TO ALL.....I have completely forgotten what he said that one thing was.(Perhaps an attorney on the board can synthesize all the BS put out by BOW and come up with the answer) I do remember it was a rather insignificant legality and RP said "EDig had answered it backwards and forwards and had countered BOW'S claims very significantly. RP was very and I use the word "VERY" positive EDig had no major concerns in this area.

FOR LL. this will make you happy....RP did state "anything can happen in a courtroom"......I thought that would make you happy.....

I asked if he felt the new DP xt from BOW was based on the DP's IP or the eVu's IP and who was making it. He didn't know who was making. He thought Triad was out of the picture and said "no-one had ever seen Wencor's new product" He also said that just as soon as it comes out and EDig can get it's hands on one they will find out if WENCOR becomes one the "prime IP infringers"

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