Hello all,

As I said in my Monday post regarding RP “stepping down” (read FF ‘s follow-up comments) “This changes everything”, and then with Tuesday’s EDIG PR everything changed even more in an unexpected way, at least to my thinking. You guys have been very busy, and justifiably so. Some good points therein, of course a lot of amusing chatter, I am sorry for the few tête-à-tête conflicts, but understand emotions can run deep, especially after all this time and commitment. Please forgive and forget, and perhaps pray for those folks who got in at $24. Wouldn’t it be something if they broke even, or close to it?

First let me say that in my previous 2 posts, I said I thought there was an underlying issue, and I thought edig, powers-that-be, wanted to sell out and get edig behind them. Clearly wrong I was wrong, for the moment at least. As I said before, I feared there was “too much history”. I actually thought, RP might be at the center of TMH, perhaps too set in his ways from perpetually espousing unrealistic forecasts followed by circumventing platitudes, but I never thought he would “step down”, especially if a significant “material” event was about to occur. Tuesday’s EDIG PR shocked me. I never expected an attempt at business expansion, especially with current management, not to mention my already stated opinion on eVU. However, I don’t think the stated current strategy is a bad one. It is one in fact that I’ve implemented a few times over the years. Or, perhaps maybe they will become, as one of you suggested, certified Patent Trolls. Just kidding, sort-of.

I decided to take a bit of time to observe and think. Below are my thoughts, right or wrong:

1. I agree with everyone the 2 announcements clearly were a non- event in terms of the PPS/Volume, at least for now. However, in other ways they were, in combination, a huge event with many implications for the future.

2. I really thought someone would buy them out, perhaps to save $, but more importantly, to own and control ‘774 before the MH. Imagine what really one of the big-boys, and I am not necessarily talking about one of the current 16 defendants, could do with ‘774, and perhaps the other patents. Certainly, in this case there would be a future MH, but in different hands. We’ll see.

3. Having said that, the 2 PR’s in combination certainly do not sound like a company that wants to be bought out anytime soon.

4. Having said that, I don’t believe there will be any partnerships announced before the MH, and hopefully there will be before the March SHM. A favorable MH has become even more crucial.

5. I also think, as many of you do, RP’s “departure” was in the works for awhile, as a strategic scheme BOD decision made with DM’s input/slash demands. I suspect RP has annoyed a lot of people over the years, but I give him credit for keeping things afloat, unbelievable really.

6. Some of you have expressed concerns about RP’s 2.1M options. I believe RP is way too savvy about stock & options (over 20 years as Woody’s VP of IR) to run any risk because of his strategic “departure”. I don’t know a lot about SEC Reg’s, but I would bet $ he tied them up as part of his “Departure Agreement”. RP may be a dope, but he is no dummy.

7. I mentioned DM above, I think we all are grateful that DM got involved, but they were not hired. They took on the IP on a 40% contingency basis. Have they become the new EDIG’s Patent Attorneys? I don’t know, but I have trouble believing they would take on this new role on a contingency basis. Who the h’ll knows, given the past and possible future?

8. Another thing that concerns me a bit about DM. James Sze was the original DM attorney who discovered edig, and convinced DM to take on this case. He hasn’t been mentioned in any of the last/most recent court proceedings. Although, he appears to be still with DM. I don’t know, perhaps he’s calling the shots behind the scenes, but if I were he, I would want my name out front. It has the potential for a career maker. I don’t know, but it concerns me.

9. I don’t think RP will a part of edig anytime soon, but I wouldn’t be surprised if Woody becomes part of EDIG. He does have a track record for “innovation”/inventions, perhaps as a consultant, and perhaps along with RP. They have been together for a long time. Just a thought.

10.Some of you have speculated about the future of good management and institutional investors. I don’t think either will be or attracted to edig until things change even more than they recently have. I remind you that edig has 193M shares outstanding, a negative net worth of $80+M, and a volatility rating of 95+ or -. Maybe I am wrong, but the proof is in the pudding. We’ll see.

I have more thoughts, but enough for now. I remain optimistic. Merry Christmas, Happy Holidays, and may God bless us all. Early 2011 will be very interesting, I think.

Thanks