The company made that statement in a PR just back in August and reconfirmed it in a personal email in response to my question. e.DIGITAL CORPORATION REPORTS Q1 FISCAL 2007 RESULTS Provides Update on eVU™ Business and Flash Memory-based IP Monetization Efforts (SAN DIEGO, CA, – August 14, 2006) – e.Digital Corporation (OTC: EDIG), a leading innovator of proprietary secure digital video technology and products, and patented technology in the utilization of flash memory in portable devices, today reported revenues for the first quarter of its fiscal year 2007 ended June 30, 2006 totaled $21,000 compared to revenues of $998,000 for the first quarter of fiscal 2006. The decrease resulted from the inability or unwillingness of contract manufacturer, Maycom, to timely deliver a 1250 unit digEplayer™ order as previously reported and the resulting digEcor litigation which has hindered volume eVU™ orders. At June 30, 2006 the prepaid order was still behind schedule. While waiting several weeks for digEcor’s definitive instructions regarding the 1250 unit order, Maycom has recently advised the Company that it is going ahead with its preparations to begin manufacturing the delayed order. Maycom has consented to onsite inspections by employees of e.Digital during the manufacturing process and has agreed to daily penalties for any further late delivery beyond their promised mid-October delivery date. However, delivery of this order is not assured nor can there be assurance that digEcor will accept delivery pursuant to the terms of the order. The company reported an operating loss of $684,000 for its first fiscal quarter 2007, compared to an operating loss of $530,000 for the same period last year. Net loss available to common stockholders for the first fiscal quarter of 2007 was $(0.01) per basic diluted share, compared to $(0.00) per basic diluted share for the same period last year. “While the digEcor complaint has hindered volume eVU mobile entertainment system orders to date, our turnkey entertainment services business continues to be well-received by companies offering, and expected to offer, eVUs to their customers/passengers/patients,” said Will Blakeley, e.Digital’s president and chief technical officer. “With Maycom’s scheduled delivery of the delayed 1250 units in mid-October and volume eVU production beginning this quarter with our U.S. manufacturer, we are focused on closing volume eVU orders and aggressively pursuing the monetization of our flash memory patent portfolio.” In addition to direct eVU product sales, e.Digital believes that as its turnkey entertainment services solution is adopted, the Company will capture more margin on each unit sale and collect monthly revenues from content and other services, and could become profitable with annual deliveries totaling approximately 4,000 eVU units. Blakeley concluded by providing an update on the company’s efforts to monetize its flash memory-based patent portfolio. “Over the last month, we have had productive IP consultations with several well-respected intellectual property law firms. We believe there is significant interest in prosecuting our patent portfolio on a contingency basis. With the assistance of IP veteran, Pat Nunally, management and outside law firms have been conducting patent due diligence while evaluating the licensing potential to companies in the cell phone, PDA/Pocket PC, portable A/V recorder, digital camera, camcorder, and other portable device industries. Based on results to date, we are encouraged about the prospects of beginning the licensing process to monetize our important patent portfolio this calendar year.”