Ultra Portable

Video/Audio

Player Platform

• 3.5” Display

• 1.8” or 1.0” Hard Drive

• Analog Composite

Video Output

• Video Record

• JPEG Viewer Support

• USB 2.0

• Multiple Audio/

Video CODEC Support

``MANAGEMENT COMMENTARY

“Our focus on expanding the business opportunities and capabilities of our MicroOS™-based video/audio technology platform is proving successful.``

``Anandpura continued, “Last quarter, we refined and augmented the Kino™ version of our video/audio technology platform for meetings with prospective customers at the January 2005 Consumer Electronics Show (CES). Based on the meetings held by us, and those of an established Asian customer, we expect revenues this year from the sales of branded Kino-based devices.”

“We also continue to develop promising opportunities for devices based on our secure video/audio technology platform for high-speed video download kiosk-centered businesses.”