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Technology Stocks : e.Digital Corporation(EDIG) - Embedded Digital Technology

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Mar 20 5:00 PM EST

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To: Walter Morton who wrote (5634)	6/11/1999 1:29:00 PM
From: Walter Morton	Read Replies (10) of 18366

Walter: Hello Ms. Eastman: The following partners were mentioned earlier when Lucent decided to consider getting into the digital music business: mode.net celestialtechnology.com However, neither of these Web sites are functional in terms of providing music or accessing software to provide music. Are the companies listed above still considered partners of Lucent in its digital music business effort? Eastman: Yes. Walter:I have contacted Celestial and they said their web site will be up after they finish their EPAC software. They said that will take a few months. Does that seem reasonable to you? Eastman: Yes. Walter: If MODE is already using EPAC, what is that link? Eastman: MODE has an exclusive license to use EPAC in the European market. They are not active yet. Walter: As of May 21, 1999, the SDMI Secretariat stated that Lucent had not demonstrated EPAC to the members of the SDMI. When do you expect to demonstrate EPAC to the members of the SDMI? Eastman: The function of SDMI does not required that we demonstrate our codec. The comments made by the head of SDMI may have just been related to his preference toward other codecs. Walter: When is Lucent going to let the general public see their newly designed portable digital music player? Eastman: When it is finished… when the engineering designs are finished. Walter: There are approximately 16 portable players on the market already and a new one seems to be in the news every other week. When is Lucent going to post an artist's rendering of its player on an HTML document so that the general public may see it? Eastman: Lucent will not create a web page for player. We are a technology company not a LiquidAudio. If anybody puts a picture out on the internet it will be e.digital or an OEM. Walter: Cognicity has been mentioned as the provider of watermarking for Lucent's music player. However, in this recent article: eet.com Cognicity does not seem to be a front runner for the DVD-audio watermarking standard. How will this affect your design decision for the digital music player. How will this affect Lucent's chances of having its design ideas accepted by SDMI? Eastman: I believe the selection will be announced today. It is my understanding that Cognicity is not out of the running. Walter: I am aware of the ARIS/Lucent watermarking co-marketing agreement. Will this make a transition easier if Cognicity's watermarking technology is replaced by ARIS'? Eastman: If necessary, our technology can be modified to work with what ever watermarking is selected. Walter: If Blue Spike is selected instead of Cognicity and ARIS how will this affect Lucent's ability to get the portable player to the market before the holidays? Eastman: We have been in contact with both ARIS and Blue Spike Walter: In a recent internet interview the President of the Rio Division of Diamond Multimedia Systems stated that Lucent is working with Rio and Intertrust? Eastman: What! Where did you find this?! What is the web site address?! Walter: So, is it true? Eastman: I'll have to answer that with a… no comment. Walter:What is so special about little e.Digital that big Lucent decided to work with them? Eastman: I have worked with e.Digital on a different project that involved Lucent, IBM, and Intel. I was impressed with e.Digital's responsiveness. We developed a good working relationship. When Lucent decided to work on this project e.Digital seemed to be the natural choice. They were already trying to get into the music side of the business. The President of e.Digital owns two other technology companies and engineers at our Bell Labs know him well. I have been working with e.Digital for a… two years now. Walter Did it have anything to do with this thing they call MicroOS or did you choice them (e.Digital) for their engineer skills? Eastman: Hmm… MicroOS is a good thing, but the whole package is why we chose e.Digital. My Comments FWIW: Joyce Eastman does not let you waste her time. She seems to be a very down to earth person who enjoys her work and would be fun to work with. Damn! Some people are so lucky. I apologize for my poor interviewing skills. It is hard to stick to the script when you are talking to a real person.

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