e.Digital's Portable Internet Music Player Design to Support Secure Digital --SD-- Memory Card.

CES 2000

LAS VEGAS--(BUSINESS WIRE)--Jan. 7, 2000

Company Joins New Secure Digital (SD) Association

Formed by Matsushita, Toshiba, and SanDisk

e.Digital Corp. (OTCBB OTCBB

e.Digital is also an inaugural member of the newly-formed SD Association announced during a Matsushita/Toshiba/SanDisk press conference yesterday at the Consumer Electronics Show (CES) 2000.

Fred Falk, president and chief executive officer of e.Digital, said, "We are happy to be part of the newly-formed SD Association, as one of its stated goals is to provide improved protection for copyrighted content, including but not limited to music files. The SD Memory Card is another valuable tool we can use in our endeavors to offer our OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products andcustomers designs that will support SDMI (Secure Digital Music Initiative) A set of rules for securely distributing digital music over the Internet. Announced in February 1999, it is backed by the Recording Industry Association of America (RIAA) and Sony, Warner, BMG, EMI and Universal, the top fivestandards for secure Internet music." He added, "For years we have built compatibility into our designs for SanDisk memory products, which have become the de facto standardHardware or software that is widely used, but not endorsed by a standards organization. Contrast with de jure standard.

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Nelson Chan, senior vice president of marketing for SanDisk added, "We are very proud of the SD Memory Card, especially its security features which are becoming more and more important to our customers. Digital security is being pursued on many levels, and the SD Memory Card is there to support these efforts in portable devices of all kinds." He continued, "We are pleased to have e.Digital join the SD Association as an inaugural member, as they are one of the first to incorporate compatibility for SD Memory into a portable product design."

e.Digital's portable multi-codec Internet music player design is available for licensing by consumer electronics manufacturers and other OEM partners. The flexible design can be adapted to customer specifications and includes support for multiple music codecs The following is a list of codecs. Audio codecs

Non-compression formats

Audio Interchange File Format (AIFF, container format)

Resource Interchange File Format (RIFF, container format)

, removable memory, and security features. The design is SDMI compatible.

About Secure Digital (SD) Memory Card(TM)

The flash-memory based removable storage card provides a compact, reliable and easy-to-use medium to store high volumes of audio, visual, and other data for digital music players Hardware or software that plays audio files encoded in MP3, AAC, WMA or other audio formats. There are several software-based music players that play audio files in a desktop or laptop computer, including iTunes, RealPlayer and Windows Media Player. , cameras, personal digital assistants (PDAs), video cameras, cellular phones, GPS systems and other digital consumer electronics products. Its strong copyright protection capability meets the requirements of artists and content owners and offers greater data security for users.

About e.Digital

e.Digital Corp. offers an engineering partnership for the world's leading electronics companies to link portable digital devices to PCs and the Internet. Engineering services range from the licensing of e.Digital's patented MicroOS(TM) file management system to custom software and hardware development, design and manufacturing services. For more information on the company, visit www.edig.com.