October 21, 2004 Mail Stop: 4-6 Valerie A. Heusinkveld Chief Financial Officer Extended Systems, Inc. 5777 North Meeker Avenue Boise, Idaho 83713 Re:	Item 4 Form 8-K filed October 5, 2004 Dear Ms.Heusinkveld: We have reviewed your filing and have the following comment. Please be as detailed as necessary in your explanation. In some of our comments, we may ask you to provide us with supplemental information so we may better understand your disclosure. After reviewing this information, we may or may not raise additional comments. Please understand that the purpose of our review process is to assist you in your compliance with the applicable disclosure requirements and to enhance the overall disclosure in your filing. We look forward to working with you in these respects. We welcome any questions you may have about our comments or on any other aspect of our review. Feel free to call us at the telephone numbers listed at the end of this letter. 1. We note you discussed conclusions regarding a revenue recognition matter with Deloitte & Touche prior to their appointment. Supplementally tell us in detail what this revenue recognition matter related to and what your revenue recognition policy is related to this matter. Additionally, tell us what Deloitte & Touche`s position was on this policy or matter as well as the position of your former accountant. We may have further comments. We urge all persons who are responsible for the accuracy and adequacy of the disclosure in the filings reviewed by the staff to be certain that they have provided all information investors require. Since the company and its management are in possession of all facts relating to a company`s disclosure, they are responsible for the accuracy and adequacy of the disclosures they have made. In connection with responding to our comments, please provide, in writing, a statement from the company acknowledging that * the company is responsible for the adequacy and accuracy of the disclosure in the filings; * staff comments or changes to disclosure in response to staff comments in the filings reviewed by the staff do not foreclose the Commission from taking any action with respect to the filing; and * the company may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. In addition, please be advised that the Division of Enforcement has access to all information you provide to the staff of the Division of Corporation Finance in our review of your filing or in response to our comments on your filing. Please respond to these comments within 5 business days or tell us when you will provide us with a response. Please furnish a cover letter with your amendment that keys your responses to our comments and provides any requested supplemental information. Detailed cover letters greatly facilitate our review. Please file your cover letter on EDGAR. Please understand that we may have additional comments after reviewing your amendment and responses to our comments. You may contact the undersigned at 202-824-5355 if you have questions regarding these comments. Sincerely, Patrick Gilmore, CPA Staff Accountant Valerie A. Heusinkveld Extended Systems, Inc. Page 2 of 2