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Technology Stocks : e.Digital Corporation(EDIG) - Embedded Digital Technology -- Ignore unavailable to you. Want to Upgrade?

To: df who wrote (9155)	1/8/2000 4:03:00 PM
From: Pamela Murray	Read Replies (1) \| Respond to of 18366

From RB definitely worth the read: CES Update (Part 1): Hello all, as I sit here with the IBM 340MB microdrive (from e.Digital?s player showcased in IBM?s booth) in front of me, I can?t quite grasp how big this could be. Time will tell, but we are definitely in the right place at the right time. Excerpt from ?Twice? magazine at the show: MP3 is not the only Internet audio medium gaining momentum. Other formats are emerging that will gain significant popularity in the coming year, including Microsoft?s WMA format, Lucent?s enhanced perceptual audio coder (EPAC) format, and advanced audio coding (AAC). These new formats offer higher sound fidelity and better compression technology and most likely will be adopted by the major record labels, which have, for the most part, shunned MP3? Sounds very similar to what Fred Falk has recently told us. I will recap my meeting/visit with each of the following companies (I-Jam, SanDisk, RioPort, and IBM). It may take me a few posts to get it all in, so please bare with me. SanDisk: Their booth was BOOMING!! The first thing I looked for was either the ?Puck? design that e.Digital did with Lucent and TI, and the I-JAM. Didn?t find the ?Puck,? but the I-JAM was front and center along with Panasonic, Sanyo, and other mainstream digital players (whom I understand e.Digital is also working with). Unfortunately, I couldn?t ever talk with anyone with management. The only people available to speak with were sales people, who only could reference I-JAM as e.Digital?s. The sales guy did also say that they have been inundated with e.Digital inquiries since the show opened. I-JAM: Their booth was extremely crowded, but I managed to speak with a key player for I-JAM. I don?t want to use names or titles yet, but lets just say this person will be a very wealthy man when I-JAM goes public. I asked him what connection they had with e.Digital. He said, ?You are the 1000th person to ask me that question since yesterday. They (e.Digital) must be doing some major PR!.? He responded, ?Our manufacturer, Maycom, is incorporating e.Digital's reference design into I-JAM?s third-generation music player.? When I asked him the significance of this, he responded, ?We (Maycom) will only be using the INDUSTRY STANDARDS, or else we shouldn?t be in business. So, apparently we feel e.Digital is just that. We are going to do whatever Microsoft does.? For what its worth, this person was also a stock holder in e.Digital. RioPort: Met briefly with one of their representatives at the show. He was fully aware of their relationship with e.Digital. I told him I was a shareholder, and he asked, ?since when.? When I told him since April, he replied, ?You lucky dog! I heard their stock has gone through the roof this week.? He then went into detail about e.Digital and their core technology, and how well positioned they were to take advantage of the industry. He was throwing terms out that I couldn?t comprehend, and totally lost me. I am not a technical wizard, and I wish I would have had someone with me who could translate his gigytechnotalk into English. Part 2, 3 and possibly 4 coming soon.

To: df who wrote (9155)	1/9/2000 12:45:00 AM
From: LLCF	Read Replies (1) \| Respond to of 18366

<This is the clarification needed re: MSFT Vs EDIG.... MSFT will be partnered with EDIG indirectly through it's relationship with RioPort.... No war. They're making love through a surrogate.... (bg)> Well, let's wait just a minute... I wish [hope] you're right, but let's look at what was said [from your post]: <RioPort also has important relationships with digital rights management (DRM) and portable audio device architecture companies. The company has an agreement to integrate its audio manager software into e.Digital's Internet music player design. > Sounds like RioPort has made a deal allowing EDIG to use it's audio manager into EDIG's machine... bullish for RioPort, not EDIG! RioPort's product in demand... not EDIG, it doesn't say RioPort gives a crap about MicroOS! They're not even using it as far as we know from this press release. Now, that said, we have the Canadian report, and we have evidence that Microsoft may be interested in EDIG's OS, but I don't see a 'lock' on this anywhere yet. I think we need to keep digging. Let's call the company and ask for clarification. Also, there's this in the very next sentence: <E.Digital earlier this week announced its first licensing deal for its reference design, and is expected to announce many similar deals as the year progresses. > Clearly people are interested in their OS... I believe in keeping our eye on the ball, which means forgetting EDIG using LU's product in their player, forget EDIG using IBM's card, forget EDIG using Microsofts [RioPort's] platform.... this is important, and ads credibility but IMO is meaningless in the long run. EDIG cannot compete with the heavy weights selling the 'PUCK', it just isn't going to happen, it's not even in their long term business plan if you believe they're using the QCOM model! It's just 'proof of concept' to show everyone the power of their technology. Although it certainly is working, and we're to step one, the next step is to become the industry standard. To prove this we need to license this thing to a huge % of the market in players. In between we have to find out what kind of royalties we're getting so we can value the company as the story pans out. So, does anyone know what kind of licensing deals we have for MicroOS?? ie. what do we make per player sold by XYZ corp?? Because IMO the 'PUCK' can have moderate success over the next year and still end up in the dust bin of history. DAK