We announced new eVU product business with Lufthansa, Malaysian Airlines, Air France and Alitalia and continued business with VAR Mezzo.

We announced our eVU-ER™, an improved dedicated portable inflight player featuring a new power management technology providing an industry-leading 20+ hours of continuous video playback from a single battery. eVU is available in either a 7" or 8" high resolution LCD screen with 40 GB to 200 GB of rugged and reliable storage.

We employed $750,000 of working capital financing obtained in March 2007 to support a Malaysian Airlines order and provide working capital. In late September 2007 we paid $100,000 and extended the due date of the financing to December 23, 2007.

In October 2007 we announced that we have commenced enforcement actions of our Flash-R™ patent portfolio.