APS opened the IFE door for WENCOR and now look at what they are doing....further acquisitions with a dominant position on the portable front and several airlines already talking digEsystem before the IMS deal gets inked.

It was very astute for them to devour those underfunded fledgings that have good tech and product capabilities and then run with it.

It might have been EDIG`s suggestion to acquire the technology so they could further develop their platform.

It also eliminates 1/3 of the competition.

Just 9 months ago...

E.DIGITAL CORPORATION WELCOMES WENCOR’S ACQUISITION OF APS

SHAREHOLDER ALERT

(SAN DIEGO, CA, October 28, 2004) – e.Digital Corporation (OTC: EDIG), a leading innovator of proprietary digital technology platforms, today commented on the recent acquisition of APS by privately-held Wencor, a leader in worldwide aircraft parts distribution.

“We are very pleased to be working with Wencor on increasing the market opportunities and success of the MicroOS™-powered digEplayer ™,” remarked Atul Anandpura, president and chief executive officer of e.Digital. “With Wencor’s management, marketing, engineering and financial resources fully behind APS, we will be able to accelerate the development of additional digEplayer models, all of which will feature the same outstanding picture and audio quality, ease of use and proprietary hardware encryption that has made the digEplayer 5500™ successful.”

“The acquisition improves APS’ ability to sell its products using Wencor’s world wide marketing strength,” said Brent Wood, Wencor’s chief executive officer. “Wencor sells products to 48 of the world’s largest 50 airlines as well as to many smaller airlines. digEplayer products also fit into Wencor’s further penetration into the regional and business jet market.”