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newelong

11/11/03 12:07 PM

#50344 RE: Tinroad #50304

Tinroad ... RE: MPIO HD100 ...

This is a copy of an e-mail I sent to Robert last Friday afternoon ...

Robert,

In a previous webcast you indicated that most "reorders" were coming from Europe, and I assumed you were referring to the MPIO HD100, but I don`t recall hearing much in this regard since then. I just happened to run across this company, Tu & Tu Consumer Electronics, which states:

Introduction
Welcome to the Digital World of the 21st century! Tu & Tu Consumer Electronics is the premiere distributor for digital products, products for a better and enjoyable living. As a pioneer company of consumer electronics, we deliver products and concepts that will be an integral part of daily life for each and everyone in the 21st century. Appointed as the exclusive and official importer for MPIO, IRiver, Zillion and Dyne mp3 players, distributor of Avermedia Technologies and reseller of the Casio digital cameras we strongly focus on selling and marketing of selected consumer products. Our customer portfolio: retail chains through Europe.

http://www.tu-and-tu.com/about.html

http://www.tu-and-tu.com/hd100.html

Are you familiar with Digitalway`s effort to sell their MPIO HD100 through "retail chains" in Europe, and can you give me some idea as to how significant royalties from HD100 sales in Europe are with regard to helping cover e.Digital`s monthly burn rate ?

Thanks again,

XXXX XXXXXXX


Generally, he calls me back, and usually not long after I send my e-mails. I hesitated in asking him the question about "royalties" as related to the Company`s burn rate, but I figured, what the h*ll ??

I`m guessing the reason he hasn`t called me back is because either the Company and/or Digitalway might soon be making an announcement about entering the retail market in Europe with their new MPIO HD200 and perhaps a newly designed jukebox based on our newer Odyssey 1000 platform with the 1.8" HDD, and I`m hoping this will still be in time for the current holiday shopping season. If this happens, it could represent a much better source of royalty income than that derived from sales through webstores alone. I would certainly like to know what kind of royalties e.Digital is receiving from Digitalway, but I`m sure that is asking too much.

This could all be wishful thinking, but then again, doesn`t it kinda make sense ??

NEWe.LONG