Regarding future guidance here are the facts and issues:

Per our June 20, 2008 press release, we consider our Flash-R™ patent portfolio essential to many consumer electronic products and believe the numbers of companies and products infringing our portfolio are large. We are fortunate to have Duane Morris representing us in monetizing our patent portfolio on a contingent fee basis. However, because of the nature of our business arrangement, Duane Morris determines the number of defendants, the timing of when suits are filed, and the information that is released regarding our legal efforts. Individuals outside of e.Digital claiming to have information regarding our IP monetization plans outside of our SEC filings and public Company communications are providing only their opinions and inferences. Our legal counsel has advised us that we not communicate our plans or strategies so that they are not used against us in settlement conferences or in legal proceedings. We desire to communicate as fully as possible with current and prospective shareholders, but we must also respect and follow the advice of our legal team in these matters. Through SEC filings and/or Company communications, we will announce when new cases are filed, when cases settle, and the status of pending cases.

Per Tuesday's press release and previous Company communications, our eVU™ business has been very slow due primarily to the affect of global economic conditions on current and potential airline customers. Since January, we’ve increased our recurring IFE service revenues each month and expect the portable IFE business to pick up this year. In spite of the difficult business climate in the medical, and travel and leisure industries, we continue to pursue product and partnership opportunities outside of the portable IFE market . When we can announce orders or agreements, we will do so. I empathize with you and all shareholders who desire more tangible information. Given the constraints of our current business, we have provided what guidance we can and look forward to communicating the results of our efforts in the form of orders, agreements, and revenues. On a personal note, as a large shareholder who also has had the opportunity to work at e.Digital since its inception, I am encouraged by our Company's progress and direction and believe our best days are still ahead of us.

Best regards,

Robert Putnam,
Sr. Vice President