Previous Quarter:

Gross profit for Q2 2009 was $1.2 million or 65% of revenues

Operating income for Q2 2009 was $400,000 compared to an operating loss of $91,000 in the prior year’s Q2

Non-cash expenses related to warrant revaluations of a net $124,000, foreign tax expense of $264,000, and non-cash deemed accrued dividends on preferred stock of $43,000 contributed to the loss attributable to common stockholders of $72,000 or $(0.00) per share for Q2 2009.

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Previous Year Q3:

For the third quarter, e.Digital reported revenues of $1.25 million compared to $1.3 million for the same period a year ago.

Gross profit for the third quarter of fiscal 2008 was $396,000 or 32% of revenues

Gross profit for the first nine months of fiscal 2008 was $1.24 million or 25% of revenues.

Net loss for the fiscal third quarter was $397,000 compared to a net loss of $156,000 for the third quarter of the year prior due to the Company’s revenue recognition of $714,000 from a delayed shipment.