Didn't mean for my previous post to become a distraction. Suggesting that a settlement with Wencor shouldn't come as a surprise is a speculative statement and a provacative one at that. I don't have time to chase the discussion and I don't think the board should focus on it or what I'm about to say.

A month ago I would have thought that there was virtually no chance for a settlement with Wencor. The out of bounds effort by Wencor to subponae 4 of the airlines that are doing business with us in an attempt to go on a fishing expedition was illegal. There should be a ruling by the Judge in the next few weeks agreeing with our legal team to quash that attempt. That should bring us into the Aircraft Interiors show on a high ground. Wencor is their own worst ememy. They just shot themselves in the foot. They galvanized the judge and alerted the industry as to the kind of business partner they really are. Allot has to play out before a settlement is in order and some of that has to unfold on the floors at Hamburg. If there is a settlement, it has to come from Wencor. Before that happens, they have to realize that their chances of winning in court have significantly diminished as a result of their bone headed arrogance. The Court ruling and the Aircraft Interiors Show have to play out along the lines that I just scripted. I think there is a chance that could happen. In my mind it means we go from a 0% chance of settlement and the case gets resolved in court next January, to a 30 - 40 % chance that we settle. How long this takes......If we haven't settled by the WAEA convention in Sept. it ain't gonna happen.

On the other front. I'm pretty excited about the group Duane Morris has identified as infringers. I think that the timing of the lawsuit may play into eDigitals hands as it strengthens their position negotiating IFE. One of the areas of concern potential clients, airlines, aircraft manufacturers must have is the solvency of our enterprise. One of the outcomes of filing this lawsuit is the inherrent endorsement of Duane Morris and the value they recognize in our patents. We've understoood this and have stadfastly stood by our investment for years waiting for this kind of recognition. I do think this is a valadation but I also think that it will take additional time for eDigital to be able to openly discuss their strategy or herald their cause.

Larry