"e.Digital has been at the forefront of many fundamental innovations since it was founded over 20 years ago," stated Allen Cocumelli, chairman of e.Digital. "These innovations include, the first earset for cell phones, which subsequently evolved into today's Jabra earphone; the first portable recorder to utilize removable flash memory, which served as the foundation for the Company's increasingly successful Flash-R™ patent portfolio; the first multi-codec, multi-DRM portable music products; and, the first dedicated, hard drive-based closed structure, portable video entertainment system, which gave rise to our eVU™ business."

"While we have a great record of innovation, until recently, we have not had the resources to grow our eVU business into other markets beyond in flight entertainment (IFE)," continued Cocumelli. "With the recent and expected influx of new licensing revenues, we are in a better position to pursue business opportunities and partnerships in the medical industry, and in other segments of the travel and leisure industry. Fred Falk's experience in building and managing partnering and licensing relationships align with the Company's shift in business direction.