.Digital to Debut DataPlay-Enabled Product Designs At 2001 CES

LAS VEGAS--(BUSINESS WIRE)--Jan. 5, 2001

e.Digital Develops Branded Products Using DataPlay Digital Media

Miniature 500 MB Optical Storage Discs, Poised to Revolutionize

Consumer Electronics

e.Digital Corp. (OTCBB:EDIG), a global provider of comprehensive digital product development and designs, today announced that it and its partners will debut DataPlay-enabled product designs at the 2001 Consumer Electronics Show (CES) in Las Vegas January 6-9, 2001.

Created and manufactured by DataPlay Inc., DataPlay digital media is a universal solution about the size of a quarter that is designed to permanently store a vast amount of digital content across all digital devices and platforms, including images, documents, software, games, video and more.

e.Digital and Samsung are working together on DataPlay-enabled products that will be featured at Samsung stations in the DataPlay Pavilion. The Samsung products integrate e.Digital's proprietary MicroCAM(TM) technology with DataPlay's digital media technology. These products include a PCMCIA Storage device and an MP3 encoder/ multi-codec music player.

In the DataPlay Partners Pavilion, located at the Las Vegas Convention Center, So. 3-5, Booth No. 1357, e.Digital will debut its new "Orbit" portable music player reference design utilizing DataPlay's digital media and e.Digital's proprietary MicroCAM(TM) technology.

Fred Falk, president and CEO of e.Digital, said, "We consider DataPlay digital media to be an attractive new storage option, and believe its capacity, pricing, and features have the potential to be a consumer favorite. We were the first company to successfully integrate DataPlay digital media into a music player reference design. We look forward to this opportunity to showcase our designs, proprietary technology, and custom development services to an international audience of PC manufacturers, consumer electronics manufacturers, and OEMs.

"Most significantly, we have OEM customers who will brand and introduce our designs as soon as DataPlay technology becomes available worldwide this year."

Steve Volk, CEO of DataPlay, added, "We are excited for a number of our partners, including e.Digital, to join us in debuting the many applications for DataPlay technology. We believe our technology will revolutionize the way companies build and sell consumer electronics and distribute digital content, vastly simplifying the way people use consumer electronics and computers."

DataPlay digital media is designed to permanently record content -- whether pre-recorded (mastered), downloaded off the Internet or user-created. Universal DataPlay digital media are capable of playing and recording multiple types of content on a single disc. DataPlay digital media will be used in digital music players, electronic book readers, PDAs, digital cameras, portable games and many other consumer electronic devices and Internet appliances.

About DataPlay