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Microcap & Penny Stocks : edig (e.Digital ) -- Ignore unavailable to you. Want to Upgrade?

To: JimC1997 who wrote (749)	2/22/2002 1:20:33 PM
From: JimC1997	Respond to of 1644

Still more comments from Jim Collier: By: BMPSKR 22 Feb 2002, 01:17 PM EST Msg. 914506 of 914510 Jim Collier responds to my questions>>>>> Dear Mr Collier, It has been reported that OEMs for e.digitals music player designs backed out and that is the reason for the direct retail approach that EDIG is now pursueing. I have the following questions related to this: [Jim Collier] I'm not sure that I would use the term "backed out" when referring to OEM manufacturers in regard to the portable digital audio player market. That is certainly true with Intel. They pulled out of the CE market entirely. However, other OEMs have been very reluctant to move aggressively into this market because of uncertainty on general consumer acceptance of the technology beyond the tech savvy crowd. The demise of Napster certainly contributed to their reluctance. The large number of low cost/low end flash players that have shown up on the market has also forced a general expectation of lower pricing on higher capacity products. This has benefited companies such as our partner, Musical. We expect them to do very well this year with low cost large capacity music players. That will benefit e.Digital on a royalty basis. 1. Does this refer to jukebox players only or does it include flash based players like the MP-2000 as well? [Jim Collier] Please see above. 2. Does Musical plan to market more jukebox designs than just the Circuit City XP-3? [Jim Collier] We are working with Musical on several new products. 3. Is EASTECH still going to pursue music player market with EDIG designs or have they discountinued this effort? I guess what i'm asking is can edig expect anything from them in the way of royalyies in the near future? [Jim Collier] Eastech has completed at least one design around our basic reference design. At this time it isn't clear what their specific plans are for this product. 4. What "OEM- Branded" products does the following statement from the 1.16.02 Letter to Shareholders refer? Does it refer to Dataplay only or does it include Jukebox and flash based player designs as well? [Jim Collier] Currently, there are a number of OEM branded products in the works using our technology with DataPlay designs. We continue to work closely with B&O on their flash based products and I have already addressed the Musical jukebox products. "We expect to release news about retail availability of OEM-branded and e.Digital-branded products as well as further information about licensing and distribution throughout this quarter." 5. Is there hope that OEMs may now step up to the plate and license E.Digital jukebox player designs or is this on the back burner. [Jim Collier] Current OEM interest has shifted to ODM solutions rather than license fee relationships. We have demonstrated that we can develop and bring products to market very rapidly and get them into distribution and provide superior aftermarket support with our global supply chain. Thank you, XXXXXXXX