Thank you for your e-mail, Dr. Per our press releases and SEC filings, our business strategy is to market our eVU™ products and services to U.S. and international airlines, other companies in the travel and leisure industry, and to healthcare organizations. We employ both direct sales to customers and sales through value added resellers that provide marketing, logistic and/or content services to customers. We are also commercializing our Flash-R™ patent portfolio through licensing and we are pursuing enforcement by litigating against those who may be infringing our patents. Our international legal firm, Duane Morris LLP, is handling our patent enforcement matters on a contingent fee basis. We’re pleased to have favorably licensed and settled six of the eight cases that initiated our intellectual property monetization efforts, with more filings being prepared. Since comments we make (either in company communications, SEC filings, or individual e-mail responses that get posted on Internet chat boards) are scrutinized by opposing attorneys and the companies they represent, we believe it is in the best interest of e.Digital and its shareholders that we keep our IP monetization strategies confidential so that our words are not used against us during settlement discussions and/or litigation. The same holds true regarding providing greater detail to our competition on growing our eVU business.

We believe our eVU system is the best dedicated portable IFE device in the industry. As to our “ranking” in the portable IFE industry, none of our competitors provide financial results other than unverified claims of “doubling” their business, etc. Suffice it to say, we believe we’re one of the leaders. As we stated in our press release of January 21, 2009, with the recent and expected influx of new licensing revenues, we are in a better position to pursue business opportunities and partnerships in the medical industry, and in other segments of the travel and leisure industry. Fred Falk’s experience in building and managing partnering and licensing relationships align with the Company’s strategy to grow its business through mutually beneficial partnering arrangements rather than through building and paying for an internal sales team. We also anticipate a successful resolution of the digEcor lawsuit will greatly benefit our efforts to grow the eVU business.

We have a creative, dedicated engineering team that has successfully designed several products based on our proprietary digital video/audio platform, and we believe they will continue to keep us ahead of the technological innovation curve.


Thank you for your continued support.

Best regards,

Robert Putnam,
Sr. Vice President

e.Digital Corporation | 16770 West Bernardo Dr. | San Diego, California 92127
| p: 858.304.3016 ext. 205 | f: 858.304.3023 | rputnam@edigital.com

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