e.Digital Corporation (fka EDIG)

[acrazjo]

Another RP email!

Thank you for your e-mail, Joe. Through APS, we expect follow-on orders from Alaska Airlines and new orders from other airlines. We are also working on business product opportunities with several companies for all our technology platforms. We expect a growing number of OEM-branded e.Digital-powered products to come to market this year through recently announced and pending agreements.

We believe Gateway, TGE Group, Musical and other OEMs branding and selling digital music players, will be more aggressive in marketing their products as well-known PC-based Internet music stores come on-line. There are further business developments we are working on with the above-mentioned companies as well as the Asian OEM who manufactures for Gateway.

We expect most of our revenue in 2004 to come from our Personal Video platform as well as combinations of our Personal Audio and Personal Video platforms. We expect this to be a successful year for e.Digital; we look forward to releasing further information regarding our business progress this month. Please call me at your convenience if you would like to discuss this further, Joe. Thank you for your continued support.

Best regards,

Robert Putnam
Senior Vice President

e.Digital Corporation
13114 Evening Creek Dr. S.
San Diego, CA 92128
http://www.edigital.com

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