e.Digital Corporation (fka EDIG)

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TI's Programmable DSP Powers Compaq's iPAQ Music Center, Enabling Digital Recording From Virtually Any Source Without a PC

iPAQ Music Center, TI's First Programmable DSP-Based Audio Encoding Device, Re-invents Home Entertainment Systems
http://biz.yahoo.com/prnews/010612/datu005.html

DALLAS, June 12 /PRNewswire/ -- In its continued effort to expand the scope of digital music and grow its market position in digital audio, Texas Instruments Incorporated (NYSE: TXN - news; TI) today announced that Compaq Computer Corporation (NYSE: CPQ - news) selected TI's industry-leading programmable digital signal processor (DSP) technology to enable audio encoding and decoding in the iPAQ Music Center, a digital audio device that serves as Compaq's first home entertainment system and extends Compaq's iPAQ(TM) product line. The iPAQ Music Center, the first TI-enabled product that allows users to digitally record music from almost any source, will store and organize thousands of digital music files without the use of a PC. (See http://www.ti.com/sc/internetaudio.)

The iPAQ Music Center enables users to store, compile and catalog more than 400 CDs or 5,000 songs. Using TI's programmable DSP, the iPAQ Music Center can play both MP3 and Windows Media Audio (WMA, currently supported in streaming Internet radio only) as well as digitally record music directly from CDs into MP3 files at speeds up to six times faster than real-time. The DSP's programmability also enables the Music Center to be upgraded via the Web to support future digital audio formats. With stand-alone access to the Internet using an existing ISP, consumers can use the iPAQ Music Center to listen to streaming radio stations worldwide. It is also compatible with existing entertainment components, such as a TV and stereo.

Compaq and OpenGlobe co-developed the iPAQ Music Center, moving beyond ``old-fashioned'' CD players with advanced features such as music management, direct recording capability, Internet access and Internet radio functionality, home network connectivity and support for portable digital audio players.

``Compaq is committed to delivering cutting-edge, user-friendly home entertainment products and services that enhance consumers' lifestyles,'' said Michael Brown, director and general manager, Entertainment Products, Compaq Computer Corporation. ``Leveraging TI's leading technology, the iPAQ Music Center is ahead of its time in features, flexibility and ease-of-use.''

A recent report from IDC predicts that worldwide shipments of digital audio players will reach 5.5 million units in 2001, and grow to 25.9 million units by 2001. ``IDC believes that the market will expand significantly beyond the current set of portable products,'' said Susan Kevorkian, analyst with IDC's Consumer Devices research practice. ``Jukebox units with hard drive storage are expected to be a major growth category. IDC projects that this category will total 6.3 million units worldwide by 2005, representing an annual growth rate of almost 120% from 2000.''

``Compaq's iPAQ Music Center is a great example of the growth and development of the digital audio hardware market, and we agree with forecasts that 2001 will continue to see phenomenal growth in this industry,'' said Chris Schairbaum, worldwide marketing manager of Internet Audio at TI. ``As the preferred supplier of DSPs to the leading consumer electronics manufacturers, TI expects a whole new generation of TI-powered Internet Audio devices to emerge this year. The iPAQ Music Center offers the first glimpse of what's to come.''

TI's Programmable DSP Offers the Broadest Solution in Internet Audio

Only TI's family of Internet Audio DSP solutions, based on TI's low-power TMS320C5000(TM) DSPs, support all the widely used digital audio formats including MP3, WMA, Advanced Audio Coding (AAC), ATRAC3 and AudibleReady software speech codec ACELP®.net from VoiceAge. Furthermore, TI's programmable DSPs offer the versatility to support future product features and audio compression formats by means of simple software downloads, rather than costly hardware upgrades. The chip's small size also enables Internet Audio player manufacturers to design devices with extremely compact form factors.

TI provides high-performance, programmable DSP and analog-based solutions for many digital audio segments. TI offers a broad range of audio products with the performance headroom and flexibility in a low power solution for designs ranging from portable Internet audio players and digital radios to home jukeboxes and home theatres in a box. Building on its market leadership, TI's award-winning, next-generation product line already has received commitments from leading consumer electronics manufacturers in the Internet Audio industry. TI shipped its two-millionth Internet Audio DSP in November 2000 and has recently received technology awards from EDN and MicroDesign.

Compaq's iPAQ Music Center is expected to be available in early July 2001 at a suggested retail price of $799. For more information, or to purchase the iPAQ Music Center online, visit http://www.compaq.com/ipaqaudio.

About TI

Texas Instruments Incorporated is the world leader in digital signal processing and analog technologies, the semiconductor engines of the Internet age. The company's businesses also include sensors and controls, and educational and productivity solutions. TI is headquartered in Dallas, Texas, and has manufacturing or sales operations in more than 25 countries.

Texas Instruments is traded on the New York Stock Exchange under the symbol TXN. The company's web site is www.ti.com.

Safe Harbor Statement: Statements contained in this press release regarding the Internet appliance market and other statements of management's beliefs, goals and expectations may be considered ``forward-looking statements'' as that term is defined in the Private Securities Litigation Reform Act of 1995, and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. Statements regarding growth in the Internet appliance market are based on projections from International Data Corporation, an independent market analysis firm. The following factors and the factors discussed in TI's most recent Form 10-K could cause actual results to differ materially from the statements contained in this press release: changes in expected customer acceptance of Internet appliances and changes in the market for such appliances. TI disclaims any intention or obligation to update any forward- looking statements as a result of developments occurring after the date of this press release.


Trademarks:
TMS320C5000 is a trademark of Texas Instruments Incorporated.
ACELP is a registered trademark of the Universite de Sherbrooke.
iPAQ is a trademark of Compaq Computer Corporation.


Note: IDC forecasts are from the April 2001 report from Bryan Ma and Susan Kevorkian entitled ``MP3 Players and More: Forecast and Analysis of the Worldwide Compressed Audio Player Market, 2000-2005''
SOURCE: Texas Instruments Incorporated