There are a few differences between the two models. The E2 comes with two to four cartridges downloaded in it where as the E1 came with cartridges in cartridge form. The E1 allowed you to freely move the blade. The E2 you can add spaces/or returns (similar to a computer). The E2 actually cuts better than the original (in my experience anyway). The E2 can be updated digitally. The 2 comes with a screen so you can see what and where the images can cut. You can have up to 7 (I think) mats full of images ready to cut. The E2 can take Imagine cartridges. The E2 allows you to save your settings. For example, if you find the perfect combination, it can be stored for easy retrieval. One the flip side, the E can cut some cartridges better and the center point feature is easier to do.