``In January with the concurrences of e.digital, digEcor had a representative visit Maycom which admitted that it did not have enough components available to complete the order. This information was provided to e.digital. ``

Per eDigital;

``On November 11, 2005, in the normal course of our business, we placed a purchase order for 1250 digEplayers with our contract manufacturer, Maycom Co., Ltd. (“Maycom”). Maycom was paid progress payments with final payments made in full for the order by e.Digital and directly by our customer, digEcor (“digEcor”) in March, 2006.

Maycom has fulfilled orders for digEplayers since 2003, and has fulfilled orders for other products manufactured for e.Digital and its customers since 2000. On March 20, 2006 we became aware of information indicating that Maycom may be unwilling or unable to complete the purchase order for product intended for delivery to digEcor. We were advised that digEcor made an onsite inspection of order progress in January 2006 prior to final progress payments being made.

We are investigating this matter as well as discussing alternatives and actions with Maycom and digEcor. We expect Maycom to fulfill their obligation under the purchase order and we intend to take remedial steps including legal action, if necessary. We believe there are alternative suppliers that may be able to complete the order if Maycom is unable to do so. We are also evaluating if any third parties have interfered with our business relationship with Maycom.``

I had the impression eDigital was not aware that digecor visited Maycom until after the fact, is this a correct assumption?

So when has APS/WENCOR made onsite inspection prior to January for orders that have been delivered in the past for DigEplayers? Has APS/WENCOR ever have supply/delivery problems before with maycom? Who would care enough to warrant a visit to maycom in regards to mfg. of DigEplayer other than eDigital, Maycom, Triad or APS/WENCOR?

eDigital has never been a boring stock to own, hopefully in the end it will be a boring, steady nasdaq ($5-$10) type stock. I know this is wishful thinking, but if I`m going to dream, I like to dream big.

GLTA