ITEM 2.05. COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES

On March 10, 2009, Franklin Electronic Publishers, Incorporated (the "Registrant") announced a 22% reduction in its total global workforce in response to a deteriorating economic environment and in connection with Kreutzfeldt Electronic Publishing GmbH's insolvency proceedings (See Item 2.06 below). Combined with other operating cost reductions, the Registrant expects to realize an annualized net savings of approximately $3,600,000 in future periods inclusive of the cost cutting initiative executed in mid 2008. The Registrant expects to take a charge to earnings of $600,000 during the quarter ending March 31, 2009, consisting of separation payments and other onetime costs associated with these cost reductions.

The full text of the press release issued by the Registrant on March 10, 2009 is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

ITEM 2.06. MATERIAL IMPAIRMENTS

On March 9, 2009, the Registrant concluded that an impairment had occurred to the carrying value of goodwill allocated to its data conversion subsidiary, Kreutzfeldt Electronic Publishing GmbH (KEP) in Hamburg, Germany. On March 10, 2009, the managing directors of KEP opened insolvency proceedings. The Registrant expects to take a non-cash goodwill impairment charge of $500,000 in the quarter ending March 31, 2009.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

Exhibits:
99.1 Press Release, dated March 10, 2009

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