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

Business Editors

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:EDIG) announced today that its portable Internet music player design will be one of the first to feature compatibility with the new, Secure Digital (SD) Memory Card announced in August 1999 by SanDisk, Toshiba, and Matsushita, best known by its Panasonic brand name.

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 customers designs that will support SDMI standards 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 standard for portable devices."

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, 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, 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.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements relating to future performance, technology and product development that may impact on 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 risk factors such as: future products and results; technological shifts; potential technical difficulties that could delay new products; competition; general economic conditions in the markets in which the company operates; the ability of the company, its customers, and suppliers to become Year 2000 compliant; pricing pressures; and the uncertainty of market acceptance of new products by OEM's and end-user customers.

Note to Editors: e.Digital and MicroOS are trademarks of e.Digital Corp. SanDisk, SD Memory Card, CompactFlash and MultimediaCard are trademarks or registered trademarks of SanDisk Corp. All other product, company, or service names are the property of their respective owners.

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