Been away for the majority of the last few days, but have had a lot of thoughts and responses I`d like to convey (Oh NO! Another SGE novel! LOL).

First, of course we`ll be present at WAEA, and of course we`ll be sitting with APS/Wencor.

Second (aptly placed), we don`t HAVE to have a second product line selling aggressively in the near term IMO. It looks to me like IFE sales with APS/Wencor alone could propel our PPS upward enough to make us all very happy. Which is my segway to:

Third: Has anyone really thought about what this APS/Wencor PR (posted in the message to which this replies) says re: orders and timing. I haven`t seen a thing on THAT here. Put on your thinking caps!

On 7/28/05, EDIG stated in a PR ``that it expects revenues in its second fiscal quarter (Q2 - 2006) ending September 30, 2005 to exceed $1.6 million.`` On 8/15/05, EDIG stated in a PR that ``it has received purchase orders for approximately $1.6 million, which it expects to ship in the second quarter of fiscal 2006.`` Those numbers look similar? So this tells us that nothing, as far as orders received, had changed during that brief period of time. So the date of interest is 7/28/05.

Now, in the latest APS/Wencor PR it says, right off the bat: ``The last four weeks have seen a heavy increase in sales with more on the way,`` said Brent Wood, CEO of APS and Wencor.

Calendar check: Four weeks back would put you on 8/11/05. That`s well after the 7/28/05 EDIG guidance, and only four days before the unchanged 8/15/05 guidance. On the latter, remember there was a weekend in there, and the 8/15/05 guidance came out on a Monday. Even if APS received their first order precisely on 8/11/05, essentially one work day would very probably not be enough time to process a formal PO to EDIG based on that new order.

So, taking all these words very literally and assuming some level of date accuracy (on the part of Brent Wood), none of these orders and reorders are included in that ``old`` $1.6M guidance number. And I`m talking about some, maybe all, of the new adopters (that took us from the 13 known to the 16 known, plus two yet to be announced to make Brent Woods` 18 number) AND some, maybe all, of the eight re-orders from incumbent users NOT BEING IN THAT $1.6M guidance number. Just based on this, I think we`re in for a pleasant surprise when the next guidance comes (presumeably at the end of this qtr, e.g., 9/30/05).

So, IMO, the $1.6M number was based on the known 13 adopters, plus two or more airlines testing (with a total of 1,000 digEs to support that effort). Now (to re-iterate) we have FIVE more adopters of which two are very small and one with an order for 900 (which was a little disappointing to me, because my calcualtions suggested 2-3,000 - but they may come), plus two unannounced that may be much larger airlines planning to announce at WAEA. We also have 8 re-orders from incumbents. AND we have ``several`` more airlines yet to be announced (the two - part of the 18 - may be in this number, meaning we will end up with a minimum 20 KNOWN adopters by the end of WAEA). Again, IMO this is the basis for the thought of a very pleasant surprise.

More in next message.....

SGE