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Wednesday, 07/09/2003 3:17:07 PM

Wednesday, July 09, 2003 3:17:07 PM

Post# of 93819
Refresher course on the EDIG-Hewlett-Packard relationship:

e.DIGITAL DELIVERS WIRELESS MP3 HEADSETS
FOR MAJOR OEM CUSTOMER


(SAN DIEGO, CA - July 1, 2003) - e.Digital Corporation (OTC: EDIG) today announced the on-time fulfillment of its design and development project for Softeq Development Corp. announced earlier this year. The project, commissioned by Hewlett-Packard through Softeq, required a custom designed MP3-based wireless headset.

The headset’s mechanical, hardware, software and firmware designs were all developed by e.Digital and use e.Digital’s patented MicroOS™ Operating System. The headset incorporates embedded flash memory containing prerecorded audio files that will interact with strategically placed transmitters.

The major OEM customer for these wireless headsets will be named later this year.

"This delivery completes our first project with Softeq and represents over $1.2 million in orders and development," stated Fred Falk, president and CEO of e.Digital. "Working with Softeq and Hewlett-Packard has been a great experience and we look forward to possible product extensions and follow-on orders as well as new project opportunities with them."

"We challenged e.Digital to leverage their portable design capabilities and provide our customer with a product that could benefit millions of users," said Christopher Howard, President of Softeq. "This product required stringent technical as well as functional specifications, all of which e.Digital met or exceeded."

"This has been a very exciting project for e.Digital," noted Atul Anandpura, e.Digital’s vice president of research and development. "We have been able to showcase a wide range of our design capabilities, our patented technologies and innovation in a single product."

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