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Cassandra

11/12/03 5:38 PM

#50889 RE: chwdrhed #50874

Duplicity??? I was talking about very significant top-line revenue that would be booked if EDIG had a contract with Gateway that included the manufacturing. It would dwarf Softeq, APS and Eclipse combined.

You are thinking about comments I made about the APS device, not the Eclipse by F10. Some posters believed that APS was going to pay Digitalway directly for manufacturing and that EDIG would receive pure profit royalties of several hundred dollars per unit. I pointed out that the SEC filings make it clear that e.Digital will pay for the manufacturing out of of those royalties, so the majority of the APS revenue will be paid through to DW.

It's the same scenario with Softeq and Eclipse - the vast majority of the revenue is paid through to the manufacturer. If e.Digital had a contract with Gateway that followed this form, not only would top-line revenue be very substantial, but margins might be expected to be better than these much smaller deals. However, again the majority of revenue will still be paid to the manufacturer.

Please explain your accusation about my Gateway comment being duplicitous? I don't see anything contradictory whatsoever.

As to your last question, I don't give advice about stock sales or purchases. You might want to ask a registered broker.