My first reaction upon reading the pacer filing yesterday, minutes after it was posted, was that there has to be more than 2 patents in play. Cross referencing it with the the orrigional Samsung filing did indeed confirm this. I look upon this move as purely a necessary streamlining of the process that if anything signifies cooperation in negotiating a settlement.

I spoke with Putnam the day before yesterday. Prior to this filing. I didn't get much out of him regarding either the IP litigation nor the Digicor proceedings. The one is cloked in secrecy and the other is likened to war resolve. All aspects of the IP litigation are being decided by Duane Morris in consultation with eDigital. In the brief conversation I had with him about Samsung. I brought up the value of a Markman hearing and he agreed that a positive Markman ruling would be meaningfull going forward but he also indicated that a settlement with Samsung may not go that route....essentially leaving the door open to whatever Duane Morris decides. There was nothing definitive in his statement. In retrospect I could conjecture that this proceedure (yesterdays filing) had already been discussed and may have already been iniated at the moment that I talked with him. Regardless, it's my guess that a settlement with Samsung will not be far behind. If it is now agreed that only 2 patents have been infringed upon instead of the orrigional 4 it is hard if not impossible to determine how this affects the number of products and the final settlement amount. It may be a relatively mute point as we will never know if the settlement amount is cut in half or exactly the same as origionally sought. If this is resolved in the next 2-3 months then the financials due in mid August will indicate a SIGNIFICANT settlement amount (IMHO) which we should all be happy with. It may be less than once upon a time it may be the same, but it should be significant never the less. If it is negotiated in the next 2-3 months it will likely stand alone in the financials as it is the only settlement of the orrigional 8 still being negotiated. (I'm not sure what you call Vivitar. Perhaps that has been idenified as the case that will see the test of Markman)

In the conversation with Putnam he did mention that the 10K would likely be filed early. There is every reason to file early as our financials look good and there is money in the bank. (I believe the auditors caution regarding the ability to continue as a going concern wiil be put to rest) He did not provide any insight into when the next group of infringers would be filed but in the context of how our shareprice responds to current events he indicated that investors are waiting for the financials and the next round of infringers to be announced.

One more conjecture on my part as it regards Samsung. This receint filing may very well play into eDigtals announced interest in partnering with a larger company that will enable the expansion of the eVu into other market areas. This wasn't a part of our conversation and is very much speculation on my part but logically makes much sense to me give the nature, timing and significance of the filing.

Larry