To exploit the growing market for closed-system secure video products, E.digital is developing a new DVAP based with a powerful new processor to provide ----- more functionality and feature sets than provided by our current DVAP. The new DVAP, based on further augmentation(?) of Micro OS, will come in the form of a fully finished product featuring high resolution digital LCD, embedded magnetic card reader, ------ privileges, 8xxx.11 wireless connectivity, internet access, Voice-over IP (VOIP), full-feature graphical user interface, content security, RFID for tracking and ---- control, access to E.digital supplied desireable content.

We are about to release today the initial industrial design for the first product based on our new DVAP - the mobile entertainment device MEDiVIEWER.

The Mediviewer will feature a 7`` high resolution LCD, along with the features and capabilities we just addressed.

We expect that Mediviewer will be completed and begin contributing to the revenue stream for E.digital along with new and continuing sales of versions of our current DVAP this fiscal year.

--- ``No effort goes in vain, and without effort there is no gain