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Message: My reply from Mr. Putnam: While it

My reply from Mr. Putnam: While it

posted on Jan 23, 2006 05:21PM
was not what I had hoped for, it was what I expected. I knew in advance Robert would not tell me anything that was not available to all shareholders. He did admit that he knew shareholder patience was growing thin (he has apparently taken a number of calls similar to mine). He is also aware that at least one shareholder has threatened a lawsuit. I`m not sure how that was brought to his attention but he gave me a blinding flash of the obvious - you can`t get blood out of turnip. Successfully suing a company with no real assets is not very cost effective. I could almost sense in his voice that he is frustrated that he doesn`t have more he can divulge, but that he is still confident we have a realistic shot at making the turn. He confirmed again that the model for this product greatly reduces the requirement for capital from e.Digital and is a workable way for a cash strapped small company to become financially stable. Only time will tell. The model is still rental with replenishment revenue and even some content replenishment if needed. I still haven`t fit the pieces of that puzzle together in my mind, but then I`m not the most astute business mind on the planet. I know blowing stuff up from 25 miles away...

Turning to my questions, he reiterated that we ``should`` have a much clearer picture by the end of this quarter. Note the quotes (mine) and the inference that nothing is solid with the eVU. Robert said they are working very hard to put this all together and that they are making good progress. He used Apple as an example of how putting out a product (IPod) without the content from iTunes would have resulted in IPod selling about 20% of what it has to date. We must put out a complete product with all the content and support to make it happen. Again, he said we are close. When I pressed him as to whether we would have definite results by the end of the quarter, he became somewhat evasive again and didn`t really give me a warm, fuzzy that all this is a done deal. In focusing my attention on trying to pin him down, I forgot to ask about the facility question. Old age only allows me to focus on one task at a time (never was very adroit at multitasking). He did mention upon questioning that he is quite impressed with Mr. Blakely and that military options are now on the table that were not there before. He has no idea how the article from CES got researched. The eVU was only shown in private meetings and no reporters were given special access to it.

My best advice to all - give `em till the end of this quarter and then act as you feel appropriate. I do not honestly believe all the eVU I`s will be dotted and T`s crossed by March 31, but I believe we should have enough concrete information to convince us that eVU is going as planned or enough ``we expects`` to convince me that this is another pipe dream. Either way, I am not going anywhere until then - each must act in their best interests.

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