I have copied/pasted various ASM reports from board members into single documents and will post in a series. We'll start with sunpoop.

2008 EDIG ASM reports by sunpoop

Lot more people than I thought....WB was a non entity. He held up the wall, didn't say a word, had no part in the meeting and looked like he was falling asleep.

They gave FF a role in doing something which I am hard pressed to remember anything he said. It had nothing to do with the reason for the SHM. I love FF. He is my guy but he could have been playing golf for all the meaning he had to the meeting.

PN was the most elucid of the entire meeting. He gave out a lot of information which has been posted. I was surprised and happy to hear quite a bit of what he had to say. If I had just been quicker on those 10 names......damn.....

RP conducted the meeting and didn't really have a "spiel" He was the moderator and "injector of clarifying comments" during the whole event.

One thing I was surprised at and wish it had been clarified to a much larger extent was RP's and PN's acknowledgement that both of them had been to "many" and I use that word for the meaning it has, "SETTLEMENT" meetings. RP was quite clear when he said these meetings were productive and "simple"

When describing what "simple" meant he and PN said that in none of these meetings did EDig threaten, cajole, try harsh convincing of suing, but just asked the other side to record on their flash based device, then remove the flash and playback what they had just recorded.

When there was no playback, PN said he just smiled and the meeting was essentially over after informing the other side to look up EDig's patent 774

The crux of this was the revealing that both had been to "MANY' settlement meetings......That was unknown to me and to most here.

So if we are to project this knowledge into logical "surmising" right now EDig/DM is in the process of many settlements. Not something we/I was aware of.

The IP infringers being sued are all for the "Recording of Audio on Removable Flash" No cameras or any other flash device, unless they contain an audio recorder and playback flash based component to it. In fact no else is on the lawsuit horizon for any other reason than Flash/Audio "AT THIS TIME" Both PN and RP stressed EDig and DM were keeping it simple at this time to (my words) gain a few victories before sticking their toes into deeper water.

I asked WB outside the meeting just how the "refreshing" of content is done to all these far flung airlines in Europe and Asia.

It's quite interesting. Lufthansa, for one, is sold a"set up" when they first purchase the units. This includes extra batteries and "refreshing content" (my words agaih) stations. When Lufthanse wishes to change movies, games, tv shows, etc...it sends what they want to EDig. EDig then takes ONE, that (1) unit and designates this as a "Master". Installs the content Lufthansa wants then simply puts the Master in the mail to Lufthansa.

No bodies running around, no expenditures on EDig's part. Lufthansa gets the Master, plugs it in on grid that's connected to at least 90 other units, starts it up and that one unit replaces all the content on the other 90 without one EDig person there.....Not being a techie I think that is really neat.

WB was there and didn't say hardly anything and was asked one question about all the new business areas EDig is pursuing and did say EDig will NOT be going into any new areas until one of two things happen, EDig is able to partner with an entity already involved in those areas, or the "pump is primed. (presumably by IP settelements) EDig has no money to do so and as RP put it "we have spent 4 years inventing a new market we don't want to spend any more time inventing another one", "we have too many things going for us in the IFE market to allow our concentration to drift off in another direction". When I asked him if we had income coming in he replied "yes" He said there were more sales of eVU's but did not say wether these were additional sales to existing customers or new customers. He did say there was income coming in from the maintenance and repair of the outstanding units but said it was not enough and he was "working on" increasing that income.

Pat Nunnally gave a "techno" speech and put me to sleep. Not because what he said didn't have relative merit but simply because he speaks low and slow and takes much time to choose his words. He was like listening to grass grow.. There were two things I felt that were elucidating" however. 1. EDig patents were filed 4 years BEFORE anyone started having interest in the "Flash Market" so there is no "prior art' to worry about and ABSOLUTELY no competition for EDig's filed patents. Proving infringers infringe is very simple, according to PN. (by the way EDig's patents and what infringers are being sued for is ONLY for removable flash memory that records and playsback audio, at least at this time. There are other infringements associated with this but DM is only going after that facet of the patent infringement)

The reason it is very simple to prove and the main reason DM is excited about their cases is the removing of the flash memory card/chip (whatever) and asking the infringer to play back the audio from his device. If he cannot because the audio is contained on the flash memory then he has infringed. EDig's patent 774 covers ALL voice recordings on flash memory...That's pretty big...

The second thing that was of interest to me in PN talks was a chart he brought out with (presumably) the names of all 174 infringers on it. All the names were blacked out EXCEPT those presently being sued by DM. There were 10 names on that chart that were NOT blacked. I think I was the only one in the room that counted the names and was just about to write them down when RP mentioned to PN to not show the chart again as there were names on it that shouldn't be shown. I tried to remember all the names shown but my memory sucks. I will say however that all the names he showed us were very large companies with the exception of Vivitar. We have been told there are 8 companies currently being sued byEDig/DM. There were 10 names on that chart. I asked RP twice to but that chart back up but I don't hold that much sway.

I talked to PN afterwords about Vivitar and he was not convinced Vivitar is going to be a meaning player. It might be good as a "pathfinder" but nothing else. He doesn't feel strongly there will even be a settlement with that company because No one is in charge, no one knows what they are doing, and no one is standing up to take responsiblity for running the company much less settling a lawsuit. His words were "it's a mess over there"

RP throughout the meeting was (THIS IS FOR YOU LL) extremely "positive" about coming events regarding the IP lawsuits. He said he and PN had sat in on NUMEROUS meetings and "was positive settlements will be occuring long before Markman hearings take place. When an investor asked about the increase in shares of 50,000,000 he said they were to pay off other existing shareholder "A" shares. (don't hold me to what they were to pay off, I was too bush trying to memorize the 10 names on the chart and didn't hear him too well) but he did not say the sales of these new shares was to "keep the doors open"

The reason I am positive about what RP said regarding settlements was due to his reply about the 50,000,000 shares. He said "if we needed any more for any other reason we would have asked for more"

There was more conversation but what RP did, AND HE KNEW HE DID IT WITHOUT GIVING AWAY THE FARM, is give us a TIMELINE. I asked him about that afterwards and he said what he said was "we won't be needing to sell more shares."

This implication was in conjunction with his conversation on settlements before any Markman. He in effect said he is positive (LL) there will be settlements during this time period. My "feeling" from talking him afterwards and pressing him for a more factual answer (which he would not give of course) is settelements are coming sooner than later, but definitely withing a now established time line of this time next year.

As I stated many time before, EDigs prime objective is NOT TO WIN LAWSUITS, but to LICENSE its patents.

These licenses are to be ONE TIME PAYMENTS ONLY. No long drawn out affairs, collecting here and there.......

Pay us big time and you can use our IP.....don't and you will pay more to use our IP.......That's the plan

No royalties, no passing our IP on once you paid for it.....just for you

Nope.......20 some odd thousand street shareholders with, not sure of the figure so I can definitely be corrected, 5 thou institutional holders....

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The way I understood RP and PN the one time settlement will be for the AUDIO REMOVABLE FLASH ONLY. If there are other infringements on other patents they could be/will be addressed later.

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Only the simplest and quickest method to get to a settlement is being addressed right now. This was said several times and PN did say, quote "we can always go back and pick up any infringers later"

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RP was fully aware of the Digecor filings of the day before yesrterday. When I talked to him about it he was more than his usual "button downed" Pr guy. He was genuinely "effusive" He was happier than I was and that takes some doing. He stated "it's about time we got some good news out of this and this was much more than we expected from this judge" I couldn't get too much more than that from him except....

LL, this will make you very happy,

"We will have to wait for what the court decides"