Hypothesis on Digecors strategy; Up until now Digegor has not shown any interest in a settlement. I think their intent up until now was to drive the litigation costs up and along with it us into submission. The receint settlement with LG electronics and the prospects of additional settlements with Casio and others may have caused them to rethink their strategy. I'm not sure how much the effect of the one has on the other, but as we close in on the scheduled court date I can't help think that the results to date on the IP litigation play into our hand defending against Digecor.

I know the prospect of settlement has been on the table since the beginning. The only thing that hasn't been negotiable has been Digecor's claim that they bought our IP when they bought out APS. eDigital was never willing to consider this as a negotiating point. For this motion to mediate to go forward, both parties must have agreed on points of mediation. I think this is a really big deal.

I suspect a settlement would take the lid off of the shareprice. I'm not sure the prospect of a settlement will have quite the same effect.

Larry