SAN DIEGO--(BUSINESS WIRE)--Jan. 5, 2000--e.Digital Corp.
(OTCBB:EDIG) announced today that it has licensed its portable
Internet music player design to Maycom Co. Ltd., manufacturer of the
I-Jam(TM) digital MP3 player.
Maycom will incorporate e.Digital's reference design into their
third-generation music player (see photo) which will support multiple
music codecs including ePAC, AAC, WMA, and MP3 and will also support
various Digital Rights Management (DRM) schemes. Maycom currently
sells its Merit(TM) MP3 player in Europe and Asia, and sells it under
the brand name I-Jam in North America.
Different models of the player will be able to utilize SanDisk's
CompactFlash(TM), SD Cards(TM) or Multimedia Cards(TM). It will hold
one to two hours of music depending on user preferences and will be
powered by rechargeable or conventional Alkaline batteries. A USB
interface will be built in to enable Internet-delivered upgrades. The
unit, dubbed MP2000 for now, is expected to go into production in late
summer 2000 depending on SDMI specifications and the availability of
secure music on the Internet.
Fred Falk, president and chief executive officer of e.Digital,
said, "We are delighted to announce Maycom as the first customer for
our portable Internet music player design featuring ePAC. Maycom is
respected for their ability to make a name for high-tech consumer
products, and for their international presence in the electronics
market."
S.W. Bae, Maycom's president added, "The e.Digital design lets us
build our third-generation digital music player to support the ePAC
music compression format, along with available support for other audio
codecs. Our customers are interested in the best sound quality and
want to be ahead of the curve as the Internet music industry begins to
take off and secure music content becomes more widely available. ePAC
provides excellent sound quality, and licensing the e.Digital design
helps us get to market more quickly."

About Maycom

Maycom Company Ltd., is a turnkey manufacturer of digital audio
and radio communication products with annual sales target of
approximately $30 million, and exports of over $10 million in 1999.
Maycom currently sells its Merit(TM) MP3 player in Europe and Asia,
and sells it under the brand name I-Jam in North America.

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. Lucent and ePAC are trademarks or registered
trademarks of Lucent Technologies. SanDisk and CompactFlash are
trademarks or registered trademarks of SanDisk Corp. All other
product, company, or service names are the property of their
respective owners.

--30--ts/sd*

CONTACT: e.Digital Corp.
Robert Putnam or Wendy Ravenel, 858/679-1504
robert@edig.com
wendy@edig.com
or
The MWW Group (for e.Digital)
Matt Messinger, 201/964-2377
mmessing@mww.com
or
Maycom
S.W. Bae, 011 82 (2) 895 8091
info@maycomcoltd.com