e.Digital Corporation Supplies Product Platform For New Bang & Olufsen Portable MP3 Player

7/1/2002 - e.Digital Corporation (OTC: EDIG), a global provider of comprehensive digital product development and designs, and Bang & Olufsen, a premier European audio/video company, announced today that the first consumer product incorporating e.Digital’s technology and Bang & Olufsen’s sleek industrial design is now available to consumers through Bang & Olufsen retail stores in the United States and Canada.

The BeoSound 2, labeled "Best Overall MP3 Player" by MensJournal.com on June 2, combines a sleek, stainless steel appearance (compared with a UFO on more than one occasion) with an intuitive user interface. Bang & Olufsen includes their extremely comfortable A8 stereo earphones for excellent sound quality and a style that will be the envy of all your friends.

BeoPlayer software and a USB cable connect BeoSound 2 to your PC and make it easy to organize, download, and enjoy your favorite music. The 128 MB storage capacity (using a removable MultiMedia Card or Secure Digital Card) holds about 4 hours of music, and its rechargeable Lithium Ion battery lasts approximately 10 hours.

Jens Victor Fisher, Product Manager, Bang & Olufsen, added, "Together, our developers have created our first portable design, an MP3 player for people who consider the world their home. Working with e.Digital let us take advantage of their portable product platform and streamlined development of BeoSound 2."

Fred Falk, CEO of e.Digital, stated, "Bang & Olufsen has earned a reputation for outstanding product quality, audio quality, and styling over their 76 years in business. We are proud to have a part in their beautiful new BeoSound 2 portable MP3 player, now available to consumers exclusively through Bang & Olufsen retail stores. BeoSound 2 is a premium example of the type of products supported by our platforms and technology, and we look forward to working on future Bang & Olufsen products together."

e.Digital’s MicroOSTM-based custom product platform is employed to manage MP3, AAC, and Windows MediaTM (WMA) formatted files within the unit and provides the pocket-sized player’s functionality once you take it on the road.

The two companies have worked together since announcing a licensing agreement in July 2001. BeoSound 2 will be introduced to the United Kingdom later in 2002.

About e.Digital
e.Digital Corporation designs, licenses, brands, manufactures, and sells digital audio products and technologies. The company also offers an engineering partnership for the world’s leading electronics companies to link portable digital devices to PCs and the Internet. e.Digital develops and markets to consumer electronics manufacturers complete end-to-end solutions for delivery and management of open and secure digital media with a focus on music, voice and video players/recorders and automotive infotainment and telematics systems. Other applications for e.Digital’s technology include portable digital music players and voice recorders, desktop, laptop and handheld computers, PC peripherals, cellular phone peripherals, e-books, video games, digital cameras and digital video recorders. Engineering services range from the licensing of e.Digital’s patented MicroOSTM file management system to custom software and hardware development, industrial design and manufacturing services. For more information on the company, please visit www.edig.com. To shop in the e.Digital online store, please visit www.edigital-store.com

Safe Harbor statement under the Private Securities Litigation Reform of 1995: This document contains forward-looking statements relating to future performance, technology and product development that may affect future results and the future viability of the company. Actual results could be affected or differ materially from those projected in the forward-looking statements as a result of risks and uncertainties, including future products and results, technological shifts, potential technical difficulties that could delay new products, competition, general economic factors, and conditions in the markets in which the company operates, pricing pressures, the uncertainty of market acceptance of new products and services by OEM's and end-user customers, and other factors identified and discussed in the Company’s most recent filings with the Securities and Exchange Commission. These forward-looking statements are based on information and management’s expectations as of the date hereof. Future results may differ materially from the Company’s current expectations.

e.Digital, MicroOS, VoiceNav, and Music Explorer are trademarks or registered trademarks of e.Digital Corporation. All other company, product, and service names are the property of their respective owners.

e.Digital Corporation: Robert Putnam, (858) 679-1504, robert@edig.com
Bang & Olufsen: Zean Nielsen, (847) 590-4959

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