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e.Digital Corp. and Lucent Technologies Select SanDisk's CompactFlash for Secure EPAC Internet Music Player.

SAN DIEGO--(BUSINESS WIRE)--May 26, 1999--

e.Digital Corp. and Lucent Technologies Offering
OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it.
e.Digital and Lucent are jointly offering to OEM customers licensing of their reference design as well as the handheld solid-state music player. A 32MB SanDisk CompactFlash card will be included with each portable EPAC Internet music player sold.

More than 165 products with specific slots for solid-state CF cards have been introduced thus far making it the most popular small-size storage card in the industry. SanDisk, which invented CompactFlash, sells CF cards in capacities ranging between 4 and 96MB.

Fred Falk, president of e.Digital, said, "We are pleased to expand our ongoing relationship with SanDisk, the leader in flash memory for data storage. We chose CompactFlash for its size, high capacity.
Our SDMI (Secure Digital Music Initiative) A set of rules for securely distributing digital music over the Internet. Announced in February 1999, it is backed by the Recording Industry Association of America (RIAA) and Sony, Warner, BMG, EMI and Universal, the top five (Secure Digital Music Initiative Secure Digital Music Initiative (SDMI) was a forum formed in late 1998, comprised of more than 200 IT, consumer electronics, security technology, ISP and recording industry companies, ostensibly with the purpose of developing technology specifications that protected the ) compliant music player features our patented MicroOS(TM) file management system and plays music stored in Lucent's EPAC audio format, which offers high security features and excellent sound quality."
Joyce Eastman, director of audio initiatives, Lucent's New Ventures Group, said, "We chose SanDisk as our flash memory card vendor for its leadership in this market. We are taking the current generation of portable players to the highest levels of audio quality and design. Together with e.Digital and SanDisk, we have designed an EPAC player that offers excellent sound quality and copyright protection."

Nelson Chan, vice president of marketing at SanDisk, said, "With SanDisk CompactFlash being selected as the storage media for the EPAC music player, we are continuing to establish a strong foothold in the Internet music player market. SanDisk has worked very closely with Lucent Technologies and e.Digital to establish a reference design which we believe will spark new design wins for our CompactFlash card. We are pleased to be working with market innovators like e.Digital and Lucent and plan to continue this relationship for future products in this market."

Chan continued, "Market research firms project that more than one million Internet music players will be sold next year followed by sales of about eight million units the following year. Both our CompactFlash and MultiMediaCard are ideal storage solutions for these ultra-small Internet music players. Both cards also include SanDisk's unique serialization which provides copyright protection."

The new pocket-sized EPAC Internet music player will provide CD-transparent quality playback and could include an FM radio tuner. Initially, the device will be bundled with one 32MB CompactFlash card and OEM customers will offer additional 32MB retail CompactFlash cards as accessories. The new EPAC Internet music player is scheduled to ship to OEM customers in the fourth quarter of 1999.

Also included with each sale will be EPAC encoding software and a CompactFlash card reader/writer external drive for desktop computers. SanDisk branded flash cards are sold in over 10,000 stores worldwide as well as through an extensive worldwide industrial distribution channel.

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 multi-patented MicroOS(TM) file management system to custom software and hardware development and manufacturing services. For more information on the company, visit www.edig.com.

SanDisk Corp., headquartered in Sunnyvale, Calif., is the world's largest supplier of flash data storage products, designs, manufactures and markets industry-standard, solid-state data, digital imaging and audio storage products using its patented, high density flash memory and controller technology. For more information on SanDisk, visit www.sandisk.com.
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