``Kino™-based devices for high-speed video download kiosk-centered businesses are among the products we expect to be announced by branding customers in fiscal 2006. We have also recently developed proprietary networking technology for supporting content downloading to multiple devices. Intended for the rapidly growing network storage device market, the first extension of this technology is being offered for evaluation to interested branding entities.”

Concluded Anandpura. “The combination of our secure DVAP and proprietary content encryption technology is attracting companies interested in branding and marketing a variety of video-based products either with pre-loaded, or with fast and easy access to, desirable protected content. Even as we continue to deal with limited financial resources, we believe e.Digital can be successful through additional, emerging business with companies who share our core vision of making desirable video content easily accessible to customers and consumers through partner-branded, e.Digital-powered secure video products. We will be releasing further information regarding corporate and business developments before our scheduled August 4, 2005 annual meeting of shareholders.”