While there have been many business disappointments, we must also recognize that management did connect on some of their efforts. Here is one example and an excited investor sharing some due diligence.

The fact that Gateway had issues of their own and that Apple was destined to dominate is not the fault of EDIG management. I suspect they had, and continue to have, the same hopes as their investors that they will gain acceptance by the right OEM/customer/partner.

An old ditty:

**************

By: franknstein

12 Nov 2003, 12:28 PM EST

Msg. 1160826 of 1228757

Jump to msg. #

CONFIRMED!!!! READ HERE!! GATEWAY!!

READ HERE!!!!!! CONFIRMED!!!

MY EMail to INvestors relation:

I am a long time investor in edigital stock. There seems to be a product that Gateway is now releasing that looks the same as you jukebox player. Can you please either confrim or deny that you have gateway as a customer ?? Is this the same product??

Thank You,

-Frank *****

Shareholder

...........................................................

RESPONSE:

Thank you for your e-mail, Frank. This is the first branded device to come

to market under the royalty-bearing license agreement we announced on

September 16, 2003.

We look forward to releasing further information regarding our business and

technology progress.

Best regards,

Robert Putnam

Senior Vice President

e.Digital Corporation

13114 Evening Creek Dr. S.

San Diego, CA 92128

http://www.edig.com

Phone: (858) 679-3168

Fax: (858) 486-3922

robert@edig.com