austonia..Appparently they've updated it for the new form factor available for that platform....like the one used for the Gateway product:
SHAREHOLDER ALERT
LETTER FROM THE PRESIDENT AND THE CEO
This letter is a direct communication from the President and CEO of e.Digital Corporation (OTC:EDIG).
October 21, 2003
Dear Shareholder:
As our Annual General Meeting approaches we would like to take this opportunity to provide a summary and an update on our business, products and strategies.
Shareholder Meeting and Voting
We have set Thursday, December 4, 2003, as the date for our Annual General Meeting of Shareholders, which will be held at e.Digital’s Corporate Offices in San Diego, California. We will provide a live audio webcast of the meeting at 2:00 p.m. Pacific Standard Time. Details of the broadcast will be announced before the meeting.
Proxy materials are being prepared and will be mailed to Shareholders of Record as of the Record Date (October 21, 2003). We encourage you to read your Proxy materials and return your ballot quickly. We also encourage you to take advantage of your broker’s telephone and Internet-based voting systems. All ballots must be received no later than noon Pacific Time on December 4, 2003 to be counted at the Annual Meeting.
Summary of Business Developments
Over the past ten months, we have executed our business plan of maximizing our technology and securing new Original Equipment Manufacturer (OEM) business. We have cut costs, consolidated operations, solidified recurring revenue and landed new OEM business and opportunities. As a result, we have realized our strongest three consecutive quarters in the Company’s history. Based on current business and expected OEM product deliveries, we anticipate that the quarter ending December 31, 2003 will continue this trend.
During the past year, we have announced new business developments that demonstrate we are building our business to maximize returns from our technology, services and products.
Let me detail our progress in our announced areas of business:
Wireless Headset
This summer, we delivered Ears to the World, a wireless, MP3-based headset (personal translation device) for use within Walt Disney World Resort. The Show Translators supply real-time, location-based narrative providing a more satisfying personal experience for guests with limited English fluency. French, German, Japanese, Portuguese and Spanish translations are currently available.
The translators utilize our patented MicroOS™ as well as our hardware and firmware. The Ears to the World project was developed as a result of the partnership announced in February between Hewlett-Packard, Softeq Development, and e.Digital. The translators interact with many key attractions in all four theme parks in Orlando, Florida (Magic Kingdom, Epcot, Disney-MGM Studios and Disney’s Animal Kingdom). We expect further business and future opportunities for this product and from these OEM relationships.
Automotive Infotainment System
When we announced our relationship with Eclipse by Fujitsu Ten in 2002, the project consisted of developing an automotive infotainment system based on MicroOS that would be integrated with one of their popular in-car CD/Stereo models. As the project progressed, Eclipse by Fujitsu Ten requested additional functionality to accommodate a greatly expanded range of product models. After several modifications to the original specifications at their request, and based on their updated schedule, we expect to deliver the automotive infotainment systems to Eclipse by Fujitsu Ten this quarter. Because Eclipse by Fujitsu Ten is a tier one supplier to major OEMs such as Toyota, if this product proves successful in the automotive aftermarket, we expect further business for this system and subsequent generations.
Odyssey 1000TM Digital Jukebox Platform
In January 2003, we launched our Odyssey 1000. The original 20 gigabyte model was supplemented with 15 and 40 gigabyte models in September. This present combination of offerings addresses the needs of a variety of consumers, from those who find cost to be the most important factor to others desiring larger capacity.
As current demand for digital jukebox products is focused on smaller form factors with increasing functionality, we reported in September that we licensed the Odyssey 1000 platform for a 1.8” hard disc drive-based form factor to a major Asian OEM for third party branding and distribution. We are pleased to report that the Asian OEM is in production and we expect the first branded units to be released to consumers in early November. We expect this new 1.8” HDD version of our Odyssey 1000 platform will be the basis for future Odyssey models.
To augment the new smaller 1.8” HDD configuration, we have enabled digital rights management (DRM) support, full ID3 tag support and Windows Media Player compatibility in order to interface with many of the new content sites that have recently come on line. A firmware upgrade with these enhancements will be released for Odyssey 1000s sold to date.
Because of the flexibility of our MicroOS we have developed a wide range of feature sets for the Odyssey 1000 platform, providing many choices for OEM customers. This a-la-carte model allows OEM clients to customize the Odyssey 1000 platform for their individual specifications and product needs.
Personal Video Platform
We are pleased to report that the first version of our MicroOS-enabled personal video platform launched this month as APS’ digEplayer™ in-flight entertainment system. The digEplayer was officially unveiled by APS and e.Digital at this year’s World Airline Entertainment Association (WAEA) Conference and Exhibition in Seattle in early September. Meetings held at the conference have yielded new opportunities and potential business from major airlines beyond the initial order placed for Alaska Airlines.
Video quality, ease-of-use and content security are the primary components of our personal video platform. We have partnered with DivXNetworks to create robust content protection utilizing their patent pending video encryption technology and our proprietary firmware and hardware encryption.
While APS’ digEplayer provides an excellent example of one of the many uses for our proprietary video platform, the business opportunities extend beyond airlines and represent potentially millions of dollars in revenue to e.Digital through expected royalties, new orders, refurbishment and upgrades.
We are currently pursuing licensing opportunities with OEMs interested in customizing our personal video system for a variety of specifications and products including in-home and automotive applications.
Other Business
We continue to work on new business opportunities for our technologies and product platforms with announced and unannounced OEM partners. Among the opportunities we are working on is the licensing of our MicroOS core. We look forward to detailing this and other new opportunities at December’s Annual General Meeting.
Summary
The past year has been one of significant growth for e.Digital as we overcame many challenges and worked to position your company for success.
Atul Anandpura and our team of engineers have worked diligently with our OEM customers and partners to customize and enhance our technology platforms for new products targeted at emerging markets. Our ability to integrate new technologies and support the security concerns of content providers combined with the proliferation of secure content availability is creating greater demand for our MicroOS technology, engineering services and product platforms. We are well positioned to capitalize on current and future opportunities in the audio, video and wireless products industries.
We thank you, our shareholders, customers, board of directors, employees and partners for your continued support and look forward to meeting with many of you at the Annual Meeting.
Sincerely,
Alfred H. Falk
Chief Executive Officer
Safe Harbor statement under the Private Securities Litigation Reform of 1995: All statements made in this document, other than statements of historical fact, are forward-looking statements. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the businesses of the Company and the industries and markets in which the company operates. Those statements are not guarantees of future performance and involve risks, uncertainties and assumptions that will be difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by those forward-looking statements. More information about potential factors that could affect the Company can be found in its most recent Form 10-K, Form 10-Q and other reports and statements filed by e.Digital with the Securities and Exchange Commission (“SEC”). e.Digital disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated by it.
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