Thank you for your e-mail, XXX. We`re still on track to ship approximately $1.6 million in orders this quarter as previously forecast. As we announced at the stockholder`s meeting and in these two recent communications to shareholders last month, based on current and emerging business for our digital video/audio technology platform (DVAP) from the in-flight entertainment, healthcare, cruise line and car rental markets, as well as kisok-based business (Kino(tm)-based products), we expect increased annual revenues and business this fiscal year over fiscal 2005. Most of the anticipated increase in business and revenues is expected through sales of secure closed system video products based on both new and current versions of our proprietary DVAP to branding customers. We will continue to provide business updates and revenue guidance going forward. Please call me at your convenience if would like to discuss this further, XXXX.

Best regards,

Robert Putnam

Sr. Vice President