Let’s all take a look at edig objectively and decide its business course of action if you owned the company.

We have an IFE product line that represents maybe 20% market share. Is somewhat marginal profit wise but is supported by increased profit in the service aspect. If you consider the internal operational and engineering support, the contribution to the success of the company is extremely doubtful.

The emergence of new technology, Continental just announced that they would begin to offer wifi on 200 of their domestic routes for 737 and 757 plane models. Eventually all 1200 will be equipped to offer wifi.

Since this market segment is very competitive and new contracts for sales are infrequent, the revenue is sporadic and impacts the financial statements negatively as a result of no consistency or product growth.

Currently, DM is representing edig in patent infringement lawsuits on a contingency basis. The status of the process has been favorable with several settlements and cross licensing agreements. The latest filing of almost 20 suits has resulted in a Markman ruling, which if ruled on favorably will generate substantial funds and hopefully pave the way for added settlements from the remaining 150+ infringers as have been identified.

Although difficult to properly analyze the total impact over the next few years, revenue wise, the company estimates the potential to be several hundred million dollars.

A recent reorganization and direction of the engineering group has been initiated to explore opportunities that would create likely partnerships with major corporations which have the infrastructure to manufacture, distribute and market innovative products to the worldwide market.

Can we count on new technology concepts developed within edig as opposed to major corporations with research and engineering groups many times larger the edig. Who will be first to file and what content will the patent consist of that will be unique to the industry and what are the odds that we will have patentable processes that may result in future settlements or royalties?

1) The IFE market share is weak and the profits are minimal. There exists many competitors and several technologies and newer advances make may the eVU semi obsolete.

2) Settlements to date have been on the low side revenue wise, however pending is a possibility of a favorable Markman ruling, which may result in greater settlement dollars for those companies currently involved in the latest lawsuit and as well as future settlements and/or license agreements. There is still the possibility of going to trial for many of the remaining patent lawsuits yet to be filed. There is no assurance that we will win the remaining infringement lawsuits.

3) We have no assurance that the new technology innovations group will be successful in developing new patent processes and that the applications will be unique enough to bring in partnerships that will generate significant amounts of revenue.

4) There are close to 300 million outstanding shares issued which may prove to be a negative factor in looking for a potential buyer. Total cost based on a range of $3.00 to $10.00 per share would calculate to approximately 900 million to almost 3 billion dollars.

5) There is no assurance that the current management has the skill and experience/expertise to guide this company into the future with new patent/product development and use of substantial funds if we continue to realize favorable settlements and license agreements.

The following scenario may offer the shareholders the best potential outcome with the lowest risk in analyzing the various alternatives.

Initiate an action plan for DM to devote an effort towards finding a buyer at this critical point in time. Provide a range of an acquisition amount or equivalent stock swap that would be acceptable to management and the shareholders.