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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: Burt Roger who wrote (3982)	5/12/1999 12:18:00 AM
From: Jules Burke	Read Replies (2) of 18366

Burt, I meant for this message to be a response to Walter's question.... Walter, IMHO Lucent only sees EDIG as a (temporary) vehicle to establish its technology (ie epac) as one of the primary solutions within the upcoming broadband consumer frenzy. As I have stated before, Lucent will let companies like Sony position themselves competitively for margins on portable devices. Lucent wants the big ticket opportunities (where profit margins will be over 40%). Within this broadband consumer frenzy that is developing, Lucent is simply laying down the foundation --think of Lucent as being on stage 2 of a 10 stage plan (and EDIG only really has a chance to establish itself during stage 2). So Walter, I do not want to think of "EDIG/LU" market share. In fact, as a shareholder, I do not want the next press release to directly concern Lucent. EDIG could seriously become isolated if it is pushed in a corner with EPAC. EDIG has an operating system! It must be vendor neutral for it to survive in this current environment--there are far too many OTHER compression/security schemes that are already being adopted by all segments of the technology/music industry. In summary, I would like to see EDIG's MicroOS as the most widely used operating system in portable devices--and it should support all of EPAC's competitors. I hope that Lucent chose EDIG because it sees EDIG's platform as the best to represent all that EPAC has to offer.

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