Below is my reply from RP to my e-mail asking for a copy of EDIG Shareholders Righs Plan.

Hi, Larry,

I believe you may be referring to a type of “poison pill” where a company issues rights to existing shareholders to acquire a large number of new shares, usually in the form of common stock or preferred stock, to prevent an unwanted takeover. The new rights usually allow shareholders (other than the party seeking the hostile takeover) to convert the right into a large number of common shares if anyone acquires more than a set amount of a company’s stock. This form of “poison pill” is called a shareholder rights plan because it provides shareholders with rights to buy more stock in the event of an undesired takeover bid.

We do not have this type of plan in place.

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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