I will preface this report by noting I learned a few things around the periphery of the PR but nothing that could not be gleaned from information publicly available.

First the hearing was yesterday. 2 to 21 days for the court to issue finding and orders. Our hope is that we can reduce some of the sillier Digecor claims and get the lawsuit to a more manageable level. Would be great if we swept the table with our motions but not a likely outcome. Robert agreed with me that Digecor has been a real millstone around our corporate neck and we want it gone so we can get on with the future

Speaking of the future, we have been in discussions with potential partners for our products/technologies for quite some time. Negotiations would proceed favorably right up to the point where we needed to show adequate funding or revenue to ensure product pipeline and then come to an abrupt halt. Now for the good news - we now have the necessary funds and have reopened negotiation with potential partners, almost all of whom are larger to much larger companies.

Robert could not and would not elaborate on WB's departure. He reminded me, as I had posted earlier, that FF had been a leader of consequence before he came to edig, but had never really had the corporate assets to see many of his visions come to fruition. Again we now have the required capital and, in RP's words, the 'promise' of much more to come so that Fred Falk will be able to execute corporate plans to achieve our more strategic goals and visions.

Edig plans to become lean and mean. RP pointed out, as had been posted by Dean I believe, that we would see 30% reduction in our salary overhead. Some of our engineering position will be converted to consultant rather than resident support.

I will now add my insights and you can do with them what you wish. I have known Robert for 10 years now. I have seen him high and low in spirit. He is off the chart and feels as I do that 2009 is the year of e.Digital. I asked if he thought we might make a major exchange by the end of the year and he said possible but that things would have to fall in place not only with edig but with the general market as well. Expect to see a new law firm/firms introduced to take over for DM in some cases where they have conflicts of interest. Expect these to be really large defendents and hopefully to see our agreements with attorney to be on terms more favorable to edig. \

This pretty much taps my limited skills and abilities. If you have more in depth questions or want deeper analysis then I suggest you call RP yourself. I am satisfied. Abandon ship if that is the best course of action you can come up with. I will find a way to buy more shares - perhaps even the shares of those who abandoned ship and are swimming with the sharks. Blessings and best wishes to all...

Kirk