e.Digital Corporation (fka EDIG)

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Reciprocal and DataPlay Take Electronic Media Distribution to New Levels of Portability, Security and Ease-of-Use
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NEW YORK & BOULDER, Colo.--(BUSINESS WIRE)--July 24, 2001--


Digital Clearing and Distribution Partnership Final Piece in DataPlay Strategy to Connect Retail Networks, Content Owners and Electronics Companies

Reciprocal, Inc., the provider of business infrastructure for the distribution of digital assets, and DataPlay, Inc., developer of the universal media format for all things digital, today announced an electronic media distribution agreement that will provide new levels of portability, security and ease-of-use for media companies, as well as consumers. The agreement leverages Reciprocal's services to integrate digital content across an extensive network of retailers and distributors, including Coconuts, Best Buy, Circuit City and Target.

The agreement also represents an additional direction for DataPlay, allowing pre-recorded content to be activated on a DataPlay digital media disc and making the acquisition of new content much quicker and easier than by downloading.

Reciprocal will also serve as a digital clearing service for DataPlay, processing subsequent transactions by consumers who activate content on pre-recorded DataPlay digital media.

"DataPlay has achieved industry-wide endorsements and recognition, and their understanding of the digital distribution requirements closely resembles our own, " said John Schwarz, President and CEO, Reciprocal. "Reciprocal is thrilled to provide the final link in DataPlay's strategy to connect retailers, content owners and electronic device companies in a way that is attractive to consumers. We look forward to a rewarding relationship with DataPlay that will make digital distribution easy and enjoyable for everyone."

"Reciprocal's services are the final piece in DataPlay's strategy of bringing additional content directly to consumers through a secure digital channel," said Steve Volk, CEO of DataPlay. "This supports DataPlay's mission to serve the public's hunger for pre-recorded and downloadable content while maintaining security and control from the distribution end."

"BMG has enjoyed working with Reciprocal as one of our clearinghouse service providers to make digital distribution easier for retailers as well as end consumers," said Sami Valkonen, Senior Vice President of New Media and Business Development for BMG Distribution. "We believe that the DataPlay offering is another step in the right direction in terms of delivering a highly portable, secure format to the market."

DataPlay digital media enables access to all forms of digital content across all digital devices and platforms, including music, images, documents, software, games, video and more. About the size of a quarter, DataPlay digital media are single-sided 250MB and double-sided 500MB micro-optical discs that support both user-recorded and secure pre-recorded content. One 500MB digital media can hold more than 11 hours of music downloads or five complete pre-recorded albums of CD-quality music, hundreds of high-resolution photographs, or dozens of games, and will retail for around $10.

DataPlay's strategy to penetrate the market quickly and effectively is built upon numerous strategic partnerships for developing devices and providing content for use with the DataPlay digital media. Universal Music Group, EMI Recorded Music, BMG Entertainment and Rosetta Books are currently planning to release pre-recorded music and e-book content on DataPlay digital media for use in multiple consumer electronic devices. Leading consumer electronic developers, such as Toshiba Corporation, Samsung Electronics, Olympus, Creative Labs and SonicBlue, are developing portable music players/recorders, digital cameras, PC peripherals, PDAs, portable games and other devices that will support the DataPlay format.

In January of this year, DataPlay won the Best of Show Award for Mobile Devices and Best Overall Lifestyle Product at the Consumer Electronics Show in Las Vegas, an event that has built a reputation for being the preeminent venue for the industry's most promising companies and products. DataPlay was recognized for its value, usability, inventiveness and design. DataPlay also received the CES Innovations 2001 award in the Blank Media category at the show in recognition of its innovative consumer electronics product.

About DataPlay, Inc.
DataPlay, Inc. was incorporated in November 1998 to develop a Web-enabled digital content recording and distribution media for portable Internet appliances and hand-held consumer electronic and entertainment devices. Headquartered in Boulder, Colorado, the Company employs more than 175 people in the United States, Singapore and Japan. Visit DataPlay on the Internet at www.dataplay.com.

About Reciprocal
Reciprocal delivers the business infrastructure for the distribution of digital assets by integrating critical functions, including e-commerce and electronic inventory management, with leading digital rights management (DRM) technologies. The Company provides comprehensive, easy-to-implement services that enable clients to realize new revenues and efficiencies while controlling digital assets and enabling a simple user experience. In partnership with other industry leaders, these flexible and scalable services address the requirements of the music, publishing, software and film industries, as well as others such as financial services and healthcare. The Company also offers strategic consulting and integration services that help content providers, distributors and websites choose and implement the solution that best fits their business needs. More than 100 companies in the Americas, Europe and Asia have selected Reciprocal as their digital distribution services provider.