SAN DIEGO--(BUSINESS WIRE)--May 22, 2002

Partnership to Create and Market New Digital Music and Voice Products

Combining World-Class Technology, Portability and Design

e.Digital Corp. (OTCBB:EDIG), a global provider of comprehensive digital product development and designs, and Digitalway Co. Ltd., one of the largest digital audio player manufacturers in the world, today announced a joint development and marketing partnership.

The two companies are collaborating to develop and brand digital music (MP3) players and voice recorder/players for sale to end users in the United States, Europe and Asia.

Mr. J.K. Woo, CEO of Digitalway Co., said, "In the few months that e.Digital has been selling their branded consumer electronics products, they have quickly become well-known for their innovative technology and quality. We view this partnership and co-branding strategy as a way to strengthen sales of our award-winning designs and reach new end users around the world."

Jim Collier, president and COO of e.Digital, added, "Digitalway has earned their reputation for world-class quality, paying remarkable attention to detail and design. Their award-winning design and manufacturing teams are valuable strategic allies in the very competitive digital audio player market. Our companies enjoy a similar vision for product development and will aggressively launch new consumer products together beginning this summer."

"Our relationship with Digitalway," said Fred Falk, CEO of e.Digital, "is a very important element in our business plan. It will help us reach our short-term goals of reaching profitability and will be increasingly important as we implement our long-term strategy. We look forward to growing our branded consumer electronics business and maximizing our reach worldwide by partnering with Digitalway."

Consumer products resulting from this partnership are expected to be branded by e.Digital for sale in the United States, Canada and Europe, and to be branded and marketed by Digitalway in Asia. The first products are expected to reach consumer markets this summer. According to a May 9, 2002, article in BusinessWeek magazine, Digitalway (OEM and branded) products comprise approximately 33 percent of the MP3 player market in the United States, Japan and Asia. Digitalway products are the number one selling digital audio products in Asia, including Japan and Korea.

About Digitalway

Digitalway is a leader in bringing innovative digital audio and multimedia devices to the consumer market. Founded by a pioneer in the MP3 industry, Digitalway is dedicated to providing leading-edge products to OEMs, distributors and end users. Digitalway started MP3 player development in July 1998 and grew to become the No. 1 digital audio player manufacturer in the world. As the OEM to Samsung Electronics (Yepp) and RFC (Jazpiper), Digitalway grew into one of the world's largest manufacturers and has earned a reputation for the highest quality. In Asia, including Japan and Korea, Digitalway's products are recorded as No. 1 selling digital audio products.

Digitalway's technologies include portable music players, digital voice recorders, multi-function digital still cameras, MP3 encoders and multi-function hybrid digital music devices. Digitalway has a hardware/software R&D center, industrial design team, two manufacturing factories and other administrative organizations including sales and marketing. For more information on Digitalway, visit: http://www.digitalway.co.kr or http://www.mpio.com.