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

To: Burt Roger who wrote (3982)	5/12/1999 12:18:00 AM
From: Jules Burke	Read Replies (2) \| Respond to 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.

To: Burt Roger who wrote (3982)	5/12/1999 12:56:00 AM
From: chris431	Respond to of 18366

"In the real business world, any investor whose primary focus becomes the nitty gritty nonsense stated in previous posts will continue to wander aimlessly through the minefields of securities investing. Those who choose to be caretaking minesweepers are succeptible to similar fruitless meanderings." Hahahahahahaha. Although you are directing this at Walter, I certainly hope you are not suggesting that an investor shouldn't scrutinize the potential market of their companies products or scrutinize the internal activity of the company. In fact, I would hypothesis that, if anything, it is the internal flaws of a company that mostly whack investors upside the head. AMD is a great example....a company who has had tremendous market share increases in the recent past as well as growing acceptance for it's higher end chips yet consistently fails b/c of internal process problems. Compaq shareholders also have felt how internal failures can impact their share prices. While I wouldn't put EDIG's current stock into either of these 2 companies (as EDIG is pretty much a speculative play) these none the less demonstrate that one should not be blind to a companies internal structure. Furthermore, with a speculative stock, potential market share & competition is very important. I have been following AURL (sound card manufacturer) ever since it came upon the gaming scene with A3D. While market share has soared (from nothing to being supported by OEM's including Dell, Compaq & Sony) it has consistently failed to profit although revenue increases have been in the 100's of percent b/c of market competition. Market competition against EDIG as well as competing formats is an extremely important issue to discuss (we know Micro OS is not limited to EPAC, yet at the moment that is certainly the direction EDIG is heading in regards to it's on-line digital distribution of music initiative.) I think it's safe to sum up Walter's opinion in 2 quick points: 1) EPAC has tons of competition, a large opportunity for failure & seems to be fighting an uphill battle (as far as we know). 2) E.dig's success in the future may be determined by its ability to meet the demands of large companies. If E.dig cannot internally do so, many potential customers could quickly decide to take business elsewhere. As such, I would call neither of these "nitty gritty nonsense." Rather they are important factors that we must be attentive to in properly analyzing EDIG. And, discussion of such is certainly not "fruitless meanderings." Chris

To: Burt Roger who wrote (3982)	5/12/1999 1:16:00 AM
From: Walter Morton	Read Replies (1) \| Respond to of 18366

<I cannot see anyone marketing a handheld music device not wanting to be able to tell their customers that their device will work will with all compression systems.> I think you make a good point, but did you see the article about EPAC going up against MP3. Lucent presents its music player as an alternative to MP3 instead of both EPAC and MP3. Of course, this does not mean EDIG cannot go on and get its MicroOS in some other players, but most of the other players are already built and available. Maybe EDIG can get into those company's new and improved versions next year.