If TPL finds a valid link to the management of flash based products in the vast array of flash product offerings, it would be smarter and cheaper for a company like Apple to buy EDIG and its patent portfolio rather than litigate it. The intellectual property appears valid and was well ahead of the market explosion in flashed based products.

PTSC is a very good model to emulate.

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e.Digital Corporation, based in San Diego, California, licenses its line of patented hardware and software technologies for use in a variety of digital video/audio devices and offers custom product design, manufacturing, and other related services to its customers. e.Digital`s specialty is developing portable digital products utilizing its patented MicroOS®. Applications for this technology include digital video/audio products for open and closed-content systems.

e.Digital Corporation and its talented engineering staff have pioneered many developments in the portable electronics industry including:

• 1990 – Released the first commercial ear telephone with an earpiece that located both the speaker and the microphone in the ear without feedback. (This was the first product in what ultimately became today’s line of Jabra™ hands-free communication products.)

• 1993 – Unveiled the first digital voice recorder with removable flash memory, powered by e.Digital’s then newly developed MicroOS®.

• 1996 – Produced the first interface for a digital voice recorder for downloading recordings to, and managing them on, the PC.

• 1997 – Began development on multi-codec, multi-digital rights management digital music technology platform using an augmented MicroOS®.

• 1998 – Developed the first portable, digital medical device featuring high-speed infrared downloading to networked PCs for dictation and data (developed for Lanier).

• 2000 – 2003 – Developed and marketed self-branded and customer-branded line of digital music devices. Developed VoiceNav™, voice navigation technology.

• 2001 – to Present – Developing devices based on our proprietary DVAP for branding customers, including an award winning portable IFE product for APS/Wencor.

• 2002 – Developed proprietary content encryption technology.

• 2005 – Developed proprietary networking technology for supporting content downloading to multiple devices.

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