e.Digital Corporation (fka EDIG)

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OT: ESS Technology Becomes DivXNetworks, Inc. First Certified DVD Chip Partner

Vibratto(TM) Products Offer Full DivX(R) Certified Video Functionality for DVD Players

FREMONT, Calif., July 8 /PRNewswire-FirstCall/ -- ESS Technology
(Nasdaq: ESST) a leading provider of silicon solutions for digital imaging, video and audio consumer electronics, today announced that DivXNetworks, Inc., the company that created the revolutionary, patent-pending, DivX(R) video compression technology, has certified ESS's Vibratto family of DVD decoder
chips, making ESS the first official DivX Certified(TM) Partner to pass the stringent certification requirements needed to gain DivX Home Theater Certification status.

ESS Technology has developed the Vibratto line of high quality, single chip and chipset solutions that allow manufacturers to satisfy growing consumer demand for cutting-edge multimedia technology. DivX certified reference platforms based on ESS's Vibratto family of DVD chipset solutions are the latest additions to the rich feature-set already available on the
Vibratto-based DVD reference platforms. DivX video, which offers DVD-quality video at seven to 10 times greater compression rates than MPEG-2, is the world's most popular MPEG-4 compatible video compression technology, with over 85 million users worldwide. A wide range of DivX Certified consumer electronics devices, from portable video players to DVD players and set-top boxes, are scheduled to be introduced in the second half of 2003.

"We are excited to have qualified as the first to bring to market DivX Certified DVD chips that enable the next generation of multimedia DVD players," said Patrick Ang, executive vice president and chief operating officer of ESS Technology. "With its excellent visual quality and unsurpassed compression ratios, decoding of DivX video technology is an invaluable added feature to our leading Vibratto family of video decoders. As consumer broadband penetration grows rapidly worldwide, we believe DivX will soon be adopted as the de facto standard for multimedia over broadband, since it dramatically reduces download times compared to the popular MPEG-2 standards, while still retaining near-DVD video and audio quality. We anticipate that rapid market acceptance of the DivX standard will lead to full volume production in the very near future."

"Consumers have the right to expect a consistently high level of
performance when they purchase a DVD player, and we created the DivX Certification program as a guarantee of quality and compatibility for our users around the world," said Jordan Greenhall, co-founder and chief executive officer of DivXNetworks. "As the first DivX Certified DVD chip products on the market, the ESS Vibratto family will allow OEMs to create devices that offer the highest level of visual quality for all versions of DivX content, including DivX 3.11. DivX users everywhere have been clamoring for these devices, and we expect the first ESS-powered DivX Certified DVD player to hit the market very soon. Taking together all the DivX certified DVD units on the market, including those made with ESS's Vibratto products, we expect that several million DivX certified units will ship by the end of 2003."

DivX Certification includes a full DivX software development kit to help third parties make their existing solutions compatible with DivX technology, or to help them create new solutions from scratch. The DivX Certified Partner Program was created to enable the development of official DivX-enabled consumer electronics products to meet the global demand for high-quality DivX convergence devices. For more information on DivX certification process, visit http://www.divx.com/certified.

About ESS Technology

ESS Technology, Inc., is a leading supplier of high-performance
feature-rich chips for the rapidly expanding DVD, digital imaging and digital entertainment markets. The company is also a leading provider of solutions for applications in the growing consumer entertainment market. ESS provides advanced products that enable the emergence of digital home systems that
deliver and manage entertainment and information in the home.

ESS, headquartered in Fremont, California, has R&D, sales, and technical support offices worldwide. ESS Technology's common stock is traded on the Nasdaq National Market under the symbol ESST. ESS Technology's web site address is: http://www.esstech