CORPORATION PROVIDES BUSINESS UPDATE
BUSINESS AND EFFORTS TO MONETIZE
(SAN DIEGO, CA, – December 21, 2006) – e.Digital
Corporation (OTC: EDIG), a leading innovator of
proprietary secure digital video technology and
products, and patented technology in the utilization of
flash memory in portable devices, provided the following
update today on the status of its eVU™ mobile
entertainment system business and efforts to monetize
the Company’s flash memory-related patent portfolio:
Entertainment System Business
Through U.K.-based Mezzo Movies and through our own
direct sales efforts we are currently working with
several Asian, European and North American airlines on
eVU order deliveries, pilot programs and RFP requests.
We are also in the process of finalizing our first IFE
orders to a major European airline.
Additionally, we are working with one of the world’s
largest airlines on an eVU trial that is scheduled to
begin next quarter.
We have also made progress in
introducing eVU to well-known healthcare facilities in
the U.S. These facilities have completed successful
trials and are moving ahead with plans for eVU
deployments. With the assistance of our partners who are
focused on this business, we expect to begin delivering
significant eVU orders to the healthcare industry in
expect to recognize $713,000 in revenue associated with
the delivery of the 1250 unit digEplayer™ order this
quarter ending December 31, 2006. With the assistance of
our U.S.-based contract manufacturer, the majority of
the over $1 million in eVU orders we reported in
November are expected to ship this quarter. We expect to
ship the balance of these orders early next quarter as
well as receive new eVU orders in calendar Q1 2007.
Flash Memory Patent Portfolio
Because our flash memory-related
patent portfolio covers hundreds of companies and
thousands of products and extends our rights under the
patents until 2015, the law firms we have contacted are
being very thorough in their searches for prior art and
their due diligence of our patent portfolio.
Under the direction of veteran
intellectual property (IP) consultant, Pat Nunally, and
with the assistance of outside law firms, we have
assembled the first comprehensive list of potential
licensees of our flash memory-based patent portfolio. To
date, we have identified 174 companies with 1,372
products that appear to employ our patent portfolio.
About e.Digital Corporation:. e.Digital is a
provider of secure portable Video on Demand products
including its eVU™ mobile entertainment system.
e.Digital also owns and is pursuing the monetization of
its portfolio of flash memory-related patents.
e.Digital’s proprietary digital technology platform
employs its MicroOS™ operating system, Content Mark-Up
Language (CML) application, LDP software, patent-pending
Hardware Security technologies, Digital Rights
Management (DRM) solutions, Content Download
applications, Encryption and Content Protection
solutions, and Video Display software applications. For
more information about e.Digital and its technology
platforms, please visit the company website at
Safe Harbor statement
under the Private Securities Litigation Reform of 1995:
statements made in this document, other than statements
of historical fact, are forward-looking statements
within the meaning of Section 21E of the Securities
Exchange Act. You should not place undue reliance on
these statements. We base these statements on particular
assumptions that we have made in light of our industry
experience, the stage of product and market development,
expected future developments and other factors that we
believe are appropriate under the circumstances. These
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.
These statements are not guarantees of future
performance and involve risks, uncertainties that could
cause actual results to differ materially from those
suggested in the forward-looking statements, including
but not limited to the Company’s ability to finance its
operations, favorably resolve the complaint filed by
digEcor, Inc. against the Company and certain of its
officers and employees, sell its products, manufacture
and ship orders in a timely manner, secure additional
business, monetize its patent portfolio and other risks
identified and discussed in our filings with the
Securities and Exchange Commission (“SEC”). Actual
outcomes and results may differ materially from what is
expressed or implied by the 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
with the Securities and Exchange Commission (“SEC”).
e.Digital Corporation disclaims any intent or obligation
to update these or any forward-looking statements,
except as otherwise specifically stated by it.
eVU and MicroOS are trademarks of e.Digital Corporation.
All other company, product, and service names are the
property of their respective owners.
e.Digital Corporation: Robert Putnam, (858) 304-3016
ext. 205, firstname.lastname@example.org
16770 West Bernardo Drive
San Diego, CA 92127
Phone: (866) 502-8234
Fax: (858) 304-3023