This is a very different year from years gone by. EDIG has released virtually no news about new business, yet their OEM relationship as it relates to new sales has never been better set for future growth.

With portable IFE continue to grow into an untapped space, the NEW EMBEDDED SYSTEM appears about to be launch NEXT WEEK.

From that we should begin to get a flow of news and evidence of another area for growth...resulting in continued improvement in the business of e.Digital.

Portable and embedded products address two different markets within the same industry. We do know that the embedded market offers a much quicker uptake with respect to growth based on the nature of the application (equiping an entire plane/fleet vs 20-40 units per plane).

NOTE the only news released so far this calendar year `05:

03/10/05 APS/WENCOR’S digEplayer ™ AWARDED IFE PRODUCT OF THE YEAR

02/28/05 E.DIGITAL CORPORATION AND FUJITSU TEN SETTLE DISPUTE

02/14/05 E.DIGITAL CORPORATION REPORTS FISCAL THIRD QUARTER REVENUES