e.Digital Corporation (fka EDIG)

[Tinroad]

MP3 Product Sales Grow During June

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Arlington, Virginia 8/13/2003

Revenues from MP3 products such as stand-alone MP3 players and headset CD/MP3 players helped fuel growth in audio products in the month of June, according to figures released today by the Consumer Electronics Association (CEA).

Unit shipments of MP3 players attained sales of 336,452 units - an increase of 138 percent compared to the same period in 2002. Year-to-date totals for MP3 players have reached $101.8 million dollars and 904,000 units in sales.

Headset CD/MP3 player sales continue to rise in the triple digits, which helps push the audio category as well. In June, unit sales were up 202 percent, compared to the same period in 2002, to total sales of 547,000 units and dollar sales were up 104 percent to a total of $27 million.

In-dash CD player sales have been boosted by MP3 playback as well. Both unit sales and dollar sales are up 31 percent for the month of June compared to last year to a total 169,00 units and $27 million.

"The growth in MP3 has been monumental in 2003, with it clearly being a purchase criteria for consumers seeking on the go audio," said Sean Wargo, director of industry analysis. "The great news is that this trend has only just begun, now that the format is moving into the mainstream with the new profit based online music services."

With MP3 products continuing to help the audio category, year-end totals still look positive despite a decline in total sales of 17 percent, compared to last year.

Data cited in this release is available for purchase through CEA's Market Activity Reports and Analysis (MARA) program. With more than 500 reports published annually, the MARA program is recognized as the "authoritative source" for data on the consumer electronics industry. For a list of available reports and purchasing information, visit www.eBrain.org/mara or send an e-mail request to [e-mail].

http://www.ce.org/press_room/press_release_detail.asp?id=10275