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Message: My response from RP - more than I expected but less than I hoped for

My response from RP - more than I expected but less than I hoped for

posted on Jan 05, 2010 10:24PM

Below is my email to RP and his response follows. I really like the part where Robert says "In fiscal and calendar 2010, we’re focused on accelerating and maximizing our IP monetization efforts and raising the bar on our licensing terms."

Good morning Robert. I hope you had a joyous holiday and are now back at your desk with your batteries fully recharged and ready to make all of us shareholders rich during this new year.
Like a lot of shareholders I have some concerns even in this time of continually improving financial outlook for our company. As a result of suffering, both past and present, with my investment in Patriot Scientific I am a little concerned because I see some similarities in the status of both companies. Patriot has settled with many companies for some reasonably healthy sums of money and yet the shareholders continue to see the value of their holdings declining or holding steady at best. e.Digital is making great progress at reaching settlement agreements with some well known companies but my investment remains stagnant. Ironically, as I check the ticker this morning my PTSC and EDIG share prices are virtually identical.
Robert, do we have a plan to get "the word" about our success and bright future to those institutional holders and individual investors that are so critical to improving share holder value? Could you share some specifics about the long-term plan for getting us on NAS or other major market so we can break free of the OTC nightmare we live in. I understand the requirement for confidentiality of some settlements, but I do not believe we will see our share price improve dramatically unless we can make our successes public knowledge. I guess I am struggling right now to see how our current situation is any different than Patriot's situation (other than the seemingly never ending patent reexams that company is experiencing).
Fear, uncertainty, and doubt will continue to be spread about e.Digital unless and until we can get our story out in clear and succinct language. I believe attaining that clarity requires some "numbers" that investors can actually see, touch, and analyze. I am asking you to share with all of us (and particularly those of us who seem to live on the Agoracom forum) what our plan is to get out of the doldrums and really start to move up.
Thanks for all you have done in the past to keep us solvent and moving forward but, as I used to tell all my Marine Corps recruiters, what have you done for us today and what will you do for us tomorrow.

Warm regards
Kirk

Thank you for your e-mail and continued support, Kirk. As we stated at the recent shareholders meeting, we are approximately twenty months into our five year patent monetization plan. We expect to continue our IP monetization efforts beyond this five year window, but the heart of the process is underway. Last year we made solid progress by successfully concluding our first round of filings, filing a second round of cases against nineteen companies, prevailing in the digEcor litigation, paying off all corporate debt and putting the Company on firm financial footing for the first time in its history. In fiscal and calendar 2010, we’re focused on accelerating and maximizing our IP monetization efforts and raising the bar on our licensing terms. We’re also focused on growing the eVU™ systems and services business through our own internal efforts and through partnerships. As we stated at the shareholders meeting, we expect our eVU business in calendar 2010 to be much improved over calendar 2009. As we continue to build upon last year’s progress through landing and announcing anticipated new licensing agreements, new eVU orders and partnerships, and improving the Company’s financials, we expect to attract new interest from micro cap funds and retail investors with an interest in IP-related investments. We have some of the elements in place to introduce e.Digital to these funds and investors and expect to add other critical elements during this calendar year that we believe are essential to capturing significant new investment interest. While numbers are vital in bringing clarity to funds and retail investors, there are also other elements that we believe are important. If we could speak to shareholders in a vacuum about these elements and the particulars of our plan we would do so, but we learned our lesson during the digEcor litigation and won’t be providing our playbook to those we are negotiating with and/or litigating against, as well as future targets/competitors. The bottom line is the share price and we who manage the Company (and hold a significant number of shares in it) are highly motivated to improve it for you and all who have invested in e.Digital. We look forward to an exciting 2010 and releasing new information on our business progress.

Best regards,
Robert


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