e.Digital Corporation (fka EDIG)

[Tenderloin]

Neuros Digital Audio Computer Announces Availability of Positron for Linux Platform Support and Ogg Vorbis Playback

CHICAGO--(BUSINESS WIRE)--June 30, 2003--

First Digital Audio Device Manufacturer to Collaborate with the Open Source Community; Offers Unlimited Possibilities for True Third-Party Application Integration

Digital Innovations, maker of the revolutionary Neuros(TM) Digital Audio Computer, today announced the availability of Positron, an open source synchronization application that allows consumers to transfer digital audio files from a Linux workstation to the Neuros device. Positron represents the first deliverable from Digital Innovations' ongoing joint project with Xiph.org, founders of the Ogg Vorbis file format. Next month the two companies will unveil the second phase of the venture, offering integrated support for Ogg Vorbis playback on the Neuros. Digital Innovations is the first digital audio device manufacturer to offer these valuable capabilities with direct support from the open source community.
    
"Adding support for Linux, Ogg Vorbis, and other operating systems and file formats to MP3 players is expected to extend the lifecycle of the MP3 player market as it begins to mature, said Susan Kevorkian, senior analyst at IDC. "This is an important way for manufacturers to appeal to previously untapped segments of the user base."
    
In providing support for the Linux platform, the Neuros offers a number of clear advantages over other digital audio players that lack such utility. Open source developers have the flexibility to create unlimited third-party applications that other users can use, free of licensing restrictions. Several developers have already begun to build applications that expand Neuros' capabilities beyond its original MP3 file playback functionality. One such application will offer voicemail retrieval capability, while another is designed to randomly select tracks for download from the user's digital music collection based on pre-selected preferences.
    
Today's announcement further empowers consumers to enjoy their music as they wish. The Ogg Vorbis format's superior sound quality and increased storage capacity gives users the opportunity to collect more music on their device and enhance their listening experience.
    
"From its initial stages, the digital audio phenomenon was largely a product of creative, independent developers with a vision for technology and devices that speak directly to consumers and their music. We're harnessing that same spirit to further broaden the appeal and function of Neuros," said Joe Born, Chairman and Chief Technology Officer of Digital Innovations. "The initial reaction we've received from the open source community has been overwhelmingly positive, and certainly suggests a considerable demand for Linux and Ogg Vorbis support - we're thrilled to be the first vendor to work with Xiph to integrate it into our device."
    
"The relationship we've formed with Digital Innovations is quite unique, as it represents the industry's first partnership between a device manufacturer and an open source development group with a common goal," said Jack Moffitt, CEO of Xiph.org. "In developing a direct link from Neuros to the Linux platform, we're giving developers their first opportunity to create interactive applications for a ground-breaking digital audio device. The possibilities are truly endless."
    
The Neuros Digital Audio Computer couples compact design and device usability with new levels of digital music personalization and compatibility to deliver an unprecedented music experience. The device includes several unique features including MyFi, which provides wireless playback capability through any FM radio, and HiSi, an automatic song identification system.
   
 Current Neuros users can download the Positron application directly from www.neurosaudio.com. Ogg Vorbis playback capability, currently available in beta from the Website and scheduled for final release next month, will be accessible via a software update during the Neuros synchronization process. Both are offered free of charge. For more information about Digital Innovations' work with the open source community, please visit http://open.neurosaudio.com. Neuros can be purchased online directly from the company's Website and from J&R Music & Computer World at www.jr.com, and will be available at select retail outlets including CompUSA beginning in September 2003 .

About Xiph.org

The Xiph.org Foundation is a not-for-profit organization dedicated to designing, implementing, and promoting royalty-free, open standards for Internet multimedia. The first of these standards is the Ogg Vorbis audio codec, providing a royalty-free and superior alternative to MP3. For more information visit http://www.xiph.org.

    
About Digital Innovations

 Digital Innovations, established in 1995, is committed to providing breakthrough, easy-to-use products to enhance consumer use and enjoyment of technology. More than two million of the award-winning SkipDoctor line of CD, DVD and game disc scratch repair devices have been sold worldwide. For additional information on Digital Innovations and an interactive demonstration of the Neuros Digital Audio Computer, please visit www.neurosaudio.com.