e.Digital Corporation (fka EDIG)

[philozarton]

THE PRESS RELEASE

e.DIGITAL, SOFTEQ TO PARTNER ON DEVELOPMENT OF
PORTABLE PRODUCTS USING WIRELESS PROTOCOL
Infrared-Enabled Products To Offer Enhanced Digital Audio Experience

(SAN DIEGO, CA - February, 2003) - e.Digital Corporation (OTC: EDIG) and independent systems integrator Softeq Development Corporation have entered into an agreement to partner on the development of new products for the digital audio market.

The agreement paves the way for the companies to collaborate on the development of products using e.Digital’s patented MicroOS™ technology and applying its expertise in portable product design.

An early customer of the partnership is Hewlett-Packard, who is working with the companies to explore opportunities for future digital audio products.

“This partnership is an example of HP’s strategy of working with innovative partners,” said Robert Corbett, director for Retail Industry Solutions at HP. “HP believes that doing so will result in the development of exciting new products that provide consumers with simple and rewarding experiences by making technologies work better together. It will also allow retailers to provide a more satisfying environment for their customers, and facilitate better customer service.”

e.Digital brings to the partnership broad experience in the design of portable products, proven, patented technologies and success in integrating such sophisticated technologies as infrared communications into portable devices.

“We have developed, enhanced, and integrated several technologies that have resulted in a number of exciting uses for digital audio technology,” said Atul Anandpura, vice president of research and development for e.Digital. “Our experience and expertise complements the strong reputation that HP has for putting innovative technology into the hands of the customer.”

Research into possible new products is already underway.

About e.Digital
e.Digital Corporation designs, licenses, brands, manufactures, and sells digital audio products and technologies. The company's trademarked digital audio players include the MXP(tm) 100, Treó(tm) portable digital jukebox line, Silhouette(tm) ultra-slim MP3-CD player, and Odyssey(tm) line of flash- and hard disk drive-based players. e.Digital launched WeDigMusic.com to complement its digital audio players by providing consumers with a one-stop-shop for streaming and downloading music from thousands of artists on the Web. The company also offers an engineering partnership for the world's leading electronics companies to link portable digital devices to PCs and the Internet. e.Digital develops and markets to consumer electronics manufacturers complete end-to-end solutions for delivery and management of open and secure digital media with a focus on music, voice and video players/recorders, and automotive infotainment and telematics systems. Other applications for e.Digital's technology include portable digital music players and voice recorders; desktop, laptop, and handheld computers; PC peripherals; cellular phone peripherals; e-books; video games; digital cameras; and digital video recorders. Engineering services range from the licensing of e.Digital's patented MicroOS(tm) file management system to custom software and hardware development, industrial design, and manufacturing services. For more information on the company, please visit www.edigital.com. To shop at the e.Digital online store, please visit www.edigital-store.com.

About Softeq
Softeq is a privately held corporation specializing in system integration, project management, and product development for Fortune 1000 companies worldwide. For more information on the company, please visit www.softeq.com.

Safe Harbor statement under the Private Securities Litigation Reform of 1995: All statements made in this document, other than statements of historical fact, are forward-looking statements. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the businesses of the Company and the industries and markets in which the company operates. Those statements are not guarantees of future performance and involve risks, uncertainties and assumptions that will be difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by those forward-looking statements. Factors that may affect the Company's businesses, financial condition and operating results include future products and results, technological shifts, potential technical difficulties that could delay new products and services, competition, pricing pressures, the uncertainty of market acceptance of new products and services by OEM's and end-user customers, effects of changes in the economy, consumer spending, the ability of the Company to maintain relationships with strategic partners and suppliers, the ability of the Company to timely and successfully develop, maintain and protect its technology and product and service offerings and execute operationally, the ability of the company to attract corporate financing and the ability of the Company to attract and retain qualified personnel. These factors may also include, but are not limited to, general market conditions, the Company's ability to develop new products to meet market demand, the Company's ability to maintain cost controls, the mix of products and services the Company's customers require and the effects of natural disasters, international conflicts and other events beyond the Company's control. More information about potential factors that could affect the Company can be found in its most recent Form 10-K, Form 10-Q and other reports and statements filed by e.Digital with the Securities and Exchange Commission ("SEC"). e.Digital disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated by it. Editors Note: e.Digital and MicroOS are trademarks of e.Digital Corporation. All other company, product, and service names are the property of their respective owners.

CONTACT:
e.Digital, Robert Putnam, [phone], [e-mail]
Softeq, Chris Howard, [phone], [e-mail]