To: Kerry Sakolsky who wrote (4817 ) 5/27/1999 1:01:00 AM From: bob Read Replies (3) | Respond to of 18366
By: balrog Reply To: None Thursday, 27 May 1999 at 12:52 AM EDT Post # of 25917 Email from Wendy today. 1) Does e.Digital have a poison pill in place to prevent a takeover of the company? <<<< **** No, but the shares outstanding serve much the same purpose. >>>> 2) How many employees do you presently have and are you presently looking to hire more? <<<< **** The company currently has 17 employees, most of whom are engineers, and will hire as necessary to support its OEM customers and projects in development. >>>> 3) Have the 500,000 warrants been converted yet? <<<< **** Yes, but the number is 450,000. >>>> 4) After reading the latest press release from Mr. Chaliognne at SDMI. Will your Lu/eDIG player now be reconfigured to play all the different codecs including MP3 in addition to EPAC? <<<< **** The best way I can answer this right now is to copy a quote taken from a news article on CNET this week: "SDMI also is working on specifications for portable devices that play back music downloaded from the Net, such as Diamond Multimedia's Rio MP3 device. Casting an eye toward the holiday gift season, SDMI has accelerated work on that project, aiming to have the specs by June 30 so they can be embedded in devices that will be sold this year." And in another CNET article we see: "The security aspects of the [Lucent, TI, e.Digital] device will comply with SDMI," said Rachael Walkden, codirector of Audio initiatives at Lucent's New Ventures Group. "We will keep up with what comes out of SDMI." EPAC is not the result of SDMI, but will comply with the upcoming spec, Walkden added. <<<< 5) About your patents. Do these handheld music players that are being produced by Diamond and the rest infringing on your patents for a recorder with removable flash memory? Or is a recorder different from a device that downloads music? <<<< **** Diamond does not use voice recording in their current player and thus does not infringe on our hardware patent. >>>> 6) Would your MicroOS be a good OS for use in mobile phones which offer so-called "third generation" (3G) mobile services, which promise to bring multimedia including full motion video to people on the move? <<<< **** The most appropriate use for MicroOS is in handheld devices using flash memory as the main storage for any type of data. New applications are being developed all the time, and more functions are converging in ever-smaller devices, such as a mobile phone that lets you surf the Net or read your e-mail on the run. MicroOS definitely has the capability to enhance these products. >>>> Balrog