Thank you for your e-mail, XXX. While IMS is making a play to be the exclusive provider of portable IFE content, to date, most of the major studios have turned them down. We believe this will continue to be the case.

Since Duane Morris is handling our IP monetization efforts on a full contingency basis, they determine the number of defendants and the timing of when suits are filed. We expect further portfolio activity this month and throughout fiscal 2010.

Best regards,

Robert Putnam,
Sr. Vice President

e.Digital Corporation | 16770 West Bernardo Dr. | San Diego, California 92127
| p: 858.304.3016 ext. 205 | f: 858.304.3023 | rputnam@edigital.com