Thank you for your e-mail. We look forward to the Markman hearing and remain confident in the strength of our patent portfolio and the claims we are asserting in the current round of filings. We are making progress on new IFE business developments and expect to issue information about them in upcoming Company communications. Thank you for your continued support. Best regards, Robert Putnam, Sr. Vice President

I was thinking today about how disappointed I was when DM settled with Samsung 5 months or so before the Markman was scheduled. I was really hoping DM would play hard ball and make sure that we scored a successful Markman victory over Samsung (a major player); but it wasn’t to be for whatever reason.

As this second round looks to be heading toward the Markman route yet again, it occurs to me that this time we have 16 defendants and that they appear so far to be mounting a common defense. As we get closer to Markman some may yet decide to settle. However if they don’t ALL settle, then DM will still reach the Markman hearing... which will result in a very key decision and a strong indicator of EDIGs future potential at least with respect to IP monetization. Either way, what happens in about the next 5 months is going to be a big deal.

If DM scores a Markman victory, it will be a huge win. If DM should lose at Markman, it will be huge defeat (although maybe not the end as other Tier 2 patents would remain in play). If DM settles with ALL 16 DEFENDANTS prior to the Markman hearing, well I think that could be huge as well.

Consider that if DM is indeed ‘raising the bar’ with these 16 defendants, then we might reasonably expect an average settlement of $2M or so based on previous settlements (with the Texas 7). That is easily $15M+ net to EDIG which would be about 0.05/share in earnings AND cash value. A PE of just 8 would yield 40 cents/share which represents more than a triple from here. And I think my guesses are conservative should micro-cap funds get involved.

If a settlement can be considered as a ‘draw’, then WIN, LOSE, or DRAW... as I said, will be a BIG deal. I don’t see how we can go another 5 or 6 months without KNOWING much better just exactly what we own. Considering management’s fairly recent statements about ‘additional elements’ and ‘significant interest’, plus knowing the schedule as laid out by the court, things are about to get REAL INTERESTING... and VERY SOON. Enjoy the quiet while you can.

- Sinkman