Future of DigEplayer 5500 and DigEcor's Seat Embedded System

SPRINGVILLE, Utah - May 25, 2006 - In an interview with Mr. Wood, CEO of digEcor, concerning the Future of DigEplayer 5500 and DigEcor's Seat Embedded System we learned the following information.

The future availability of new digEplayer 5500 is limited at this time. DigEcor does have some in stock and also has some used players in stock. DigEcor placed an order for players last November from its contract supplier, e.digital who in turn placed an order with Maycom in Korea. In January with the concurrences of e.digital, digEcor had a representative visit Maycom which admitted that it did not have enough components available to complete the order. This information was provided to e.digital. In the middle of March, Mr. Bae owner of Maycom admitted to both e.digital and digEcor that no players had in fact been manufactured because Mr. Bae had consumed ALL of the money to prop up his financially stressed company and that he had no money available to build or ship any players. e.digital is attempting to provide digEcor with a recovery date. DigEcor has been forced to take legal action to obtain relief from the e.digital breaches.

The future availability of the Seat Embedded System. DigEcor during 2005 sought quotes from various engineering companies. Negotiations were held in the early spring of 2005 and the bidders were reduced that spring to two companies for the embedded system. Triad was selected in the fall of 2005 to design the embedded system and work began. Near the end of 2005 it became apparent to digEcor that the quality of the portable 5500 was slipping, warranties were not being honored and that Maycom needed to be replaced as the manufacturer. In early January it became apparent that Maycom was again in some kind of financial trouble and that production was not happening.

DigEcor made the strategic decision to design and produce the XT portable ahead of the embedded system and amended its contract with Triad in a way that the design of the portable XT would happen first and that the design would incorporate many of the features needed for the embedded system. This proved to be the correct decision as e.digital still has been unable to provide any recovery plan.

The embedded system has not been abandoned but only delayed out of necessity to push the XT launch ahead of the embedded system.

Contact: Bob Carey
Tel: (801) 489-2127
Fax: (801) 489-2199
[email protected]