Hi, XXXXX

You may be referring to the recent Schedule 13G filing by our largest shareholder (Jerry Polis) who is not an "insider". By comparing last year’s Schedule 13G filing with this year’s, Mr. Polis’ beneficial ownership went from 8.5% to 7.2% of the total shares outstanding. This was due in part to an increase in the total shares outstanding. We appreciate his support through the years and his continued support today.

As with any shareholder, he and his family have their own personal reasons to add to or reduce their holdings based on any number of factors. 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 Flash-R™ licensing agreements, new eVU orders and partnerships, and improving the Company’s financials, we expect to attract the attention of micro cap funds and retail investors with an interest in IP-related equities.

We have some of the elements in place to make e.Digital attractive to these funds and investors and expect to add other important elements during this calendar year necessary for significant new investment interest. The bottom line is the share price and we who manage the Company (and hold a substantial number of shares in it) are highly motivated to improve it and the trading volume for all who have invested in e.Digital.

Best regards,

Robert Putnam,
Sr. Vice President