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Message: Mr. Falk, I apologize for breaking your confidence

Mr. Falk, I apologize for breaking your confidence

posted on May 12, 2005 09:08AM
In our short meeting yesterday you were wary of even answering one of my questions. I asked you what was going on? Your reply was ``Nothing I can tell you about`` So then I asked ``Well then is ANYTHING going on?`` You almost answered, then thought better of it and told me to ``Talk to Robert. Then you stated ``Everything I tell you winds up on the chat rooms so I will not say anything``.

I am sorry that I have put you into the position you find yourself in of being unable to answer any questions from a long term, very loyal shareholder. However I do understand why you have to remain silent. When ever I learn positive news about our company, EDIG, my first thought is to share it with all those like minded shareholders. I apologize for breaking any confidence we have had over the years...

To those who read this post be aware that there are those inside EDIG who read this forum and are very aware of our frustrations in the lack of news.

I then suffled off next door and spent about 15 minutes with Robert. Among the few, and I mean very few, bits of info he felt comfortable imparting to were facts such as ``orders are still coming from Wencor on a regular basis.``

The Digesystem is Linux based, as most of you know, and I got the disticnt impression EDig is NOT that much involved in that aspect, so at this point I have no high hopes for any home run where EDig and the Digesystem is concerned. Robert said, ``Frank, our forte is in handheld devices and the Digesystem is embedded.`` ``Secure content is king.`` ``Content is what everything is all about`` ``We believe the DP is an important part of our business but on into the future it will play a lessor role.`` ``THERE ARE MANY, MANY AREAS WE ARE INVOLVED RIGHT NOW THAT WILL PROVIDE US WITH MORE STABLE AND LUCRATIVE RETURNS.``

I asked him about that statement and he provided no information other than to say (paraphrase) ``EDIG WAS VERY CLOSE TO SIGNED CONTRACTS IN THOSE AREAS.``

I then proceeded with another one of my really, really great questions. ``Robert we have been through this many times in the past, just how confident are you that what you just said is going to happen?`` He looked at me, with candor, and said ``I am very confident``.

You know, I have stated many times in the past that Robert has never lied to me that I know of. We have a decent relationship that has developed over many years and yesterday I felt his candor was true.

We have all been so attuned to Wencor for our salvation that we have excluded and not even considered other areas that may be more important to the company and us as shareholders. My impression was far more was being done in these other areas than work on the Wencor. In fact from the inflection in Robert`s voice and the small hints he dropped, I am convinced of it.

I asked about the ``billion dollar ASian Oem`` He was also quite candid in stating, ``This business could happen or it couldn`t.`` ``Content, again, is KING.`` ``Many companies are involved in DVD`s Video systems, Video players, etc....They are on the shelves at the the BEST BUYs, etc...and not taking off like IPOD`s. Due to one factor..C O N T E N T With all these devices one has to load their own CONTENT.

Which is out there readily available. The sales of these devices has shown consumers do not want to buy and then load something that is easily available elsewhere.

In fact Robert stated the main reason for iPOD`s success was ``ITUNES``. He said the sales of IPOD`s would only be 20% of what they are now if it were not for the available content provided by ITUNES.

He did mention one area EDig is very interested in, that being the time span between theater release of a movie and the time it is available on DVD``S. Usually about six months. The movie studios are VERY interested in this new, prospective, bit of revenue if a way is found to secure this content during this time period. This is one area I believe EDig is heavily involved in.

I asked him about the lack of news and was the company aware of their loyal shareholders angst. He said the entire company was very aware of that fact but could do nothing about it. Wencor is very uptight about ANY MENTION from anyone about their business unless it is approved by them.

Other OEM`s EDig is working with have the same secrecy in place...This is same old, same ole, but I do believe it has merit.

I asked him when we might be getting informed ABOUT ANYTHING? He said there would be many (what that means I do not know nor was I able to find out) news releases before and after when the 8 is filed at the end of June. I asked what that meant and he said it would give us more information as to the direction the company is taking now.

I also asked about the shareholders meeting and he said we would be informed as to when and where in June...

I hope I have given some realistic definition as what I feel the company is doing now. It`s not exactly what we all thought it was but from Robert`s tone and statements I know he firmly believes these areas we know little of (KINO, perhaps) are what EDig is all about going into the future. Wencor is still very important and he was unequivicle that the portable Digeplayer would still have that niche for those many airlines unable to install embedded systems. He expected many orders to still result from this product but would not state if EDig is still the primary mover on the Digesystem.

Hope some of you read my conclusions with optimism. I am still confident that success will happen.

The doors were still open. There were many bodies running around and the parking was jambed, unlike my previous visits. That may not mean much to many of you but when I see activity from many people that calms me...

Frank

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