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Message: RE: Good news and no news-jhawk / DaBoss

RE: Good news and no news-jhawk / DaBoss

posted on May 31, 2006 11:03AM

``...But KEY to the eVU success is the new relationship with the ``financial`` partners,requiring little or no upfront monies from EDIG to get the ball rolling...so it appears...``

Very true. As a manufacturer, we want financial strength behind a production order or KNOW we can sell the stuff ourselves should the buyer default. As a buyer from other factories, we put Letters of Credit to guarantee payment before the production is shipped to some China factories that are small so they can use that document to borrow money for raw materials.

The financial side is critcal for EDIG`s prospects to know they can perform. This is also going to be a real problem for Wencor. Now, EDIG can finance the deal through third parties and airlines can get product with far less upfront cost -- a key for cash straped airlines. In theory, the eVU rental units could pay their own way if the airline is aggessive with advertisng sales -- probably through the same folks that sell ads in the airline owned magazine and audio programs.

All in all, the PR was good news.

John

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