e.Digital Annual Shareholder Meeting Presentation

As Prepared for Fred Falk

November 9, 2000

Today, we are pleased to announce that we have signed an agreement with OEM

customer Samsung Electronics under which we are designing and developing two

separate DataPlay-enabled products that will be marketed and distributed under the

Samsung brand name. Each of these two products will be aimed at different consumer

electronics and personal computer markets.

Samsung is expected to preview the products in January at the Consumer Electronics

Show (CES) and shipments are expected to begin in 2001. A formal announcement and

details about the products are expected to come from Samsung and e.Digital in

The Palm Pilot, which is widely viewed as a successful product, has sold approximately

10 million units since its introduction to the world in 1996. Last year over 300 million

cell phones sold worldwide.

As voice technology becomes a part of portable digital products and the convergence of

multiple formats and content becomes commonplace, we can expect hundreds of millions

of devices to be sold worldwide. This is the future that e.Digital is building toward. This

is the future that we, our partners, and our OEM customers are focused on. The building

blocks of our future are MicroOS, our MP2000 platform, Digital Jukebox design,

DataPlay-enabled products, next-generation E-book platforms, and a variety of

sophisticated technology platforms that are even now being created inside our company.