e.Digital Corporation (fka EDIG)

[Tinroad]

SimpleTech Announces First-to-Market Availability of Type II CompactFlash Cards in Capacities Up to 1GB; Type I Cards Available in Industry-Leading Capacities Of Up To 640MB
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SANTA ANA, Calif.--(BUSINESS WIRE)--Aug. 16, 2001--SimpleTech, Inc. (Nasdaq:STEC), a technology solutions provider offering products based on DRAM, SRAM and flash memory technologies, today announced first-to-market availability of Type I CompactFlash(TM) cards in capacities up to 640MB and Type II cards in industry-leading capacities of 850MB and 1GB.

The cards are designed to meet the expanding needs of commercial and industrial embedded applications professionals looking for the highest possible storage capacity in the most popular standard Types I and II CompactFlash cards.(a)

"This is a prime example of the technical synergy inherent in our recently announced alliance with Hitachi Semiconductor (America)," said SimpleTech's Chief Technical Officer Mark Moshayedi. "We can take Hitachi's leading edge flash memory silicon, double its density with SimpleTech's patented IC Tower(TM) stacking technology, and offer the world's highest capacity CompactFlash cards."

According to Mark D'Arcangelo, Hitachi Semiconductor America's system memory product marketing manager, "These new product offerings from SimpleTech are just the beginning of many future `industry-first' solutions that will result from our partnership. The combination of both organizations' strengths will continue to yield superior product for the marketplace."

The proliferation of digital cameras of 3 megapixels plus, audio players and other consumer electronics -- as well as the standardization of high density CompactFlash in industrial embedded applications -- is fueling an unprecedented demand for high capacity flash cards. As more digital data is captured and supported across various consumer and computing devices, CompactFlash becomes the portable media of choice for the transparent exchange of information between electronic platforms. A captured image on a digital camera can travel to a PC, notebook or handheld device directly or with the help of an adapter.

"By pushing the storage capacity of our CompactFlash cards, we are enabling the market to look at them not just as portable media storage devices but as viable permanent storage options," said Jeanclaude Toma, SimpleTech's vice president, marketing. "With this equivalent of a miniature floppy disk and HDD combo, we can offer ruggedness, high storage capacity, low power consumption and miniaturized size in one package, offering enough flexibility to load and run operating systems and serve as a secure repository for critical data."

Embedded or commercial applications can also leverage the high capacity cards as a storage cradle for Linux operating systems or embedded Windows-based systems that serve host devices, Toma added.

The high capacity cards are available in limited quantities through September, with production quantities expected to be available in October.

SimpleTech, Inc., a leader in the design, manufacturing and marketing of custom and standard DRAM, SRAM and flash memory solutions, is headquartered in Santa Ana, California.

This release may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results predicted. Important factors which could cause actual results to differ materially from those expected or implied in the forward-looking statements are detailed under "Risk Factors" in filings with the Securities and Exchange Commission made from time to time by SimpleTech, including its Registration Statement on Form S-1 declared effective on September 29, 2000, and its periodic reports on Forms 10-K, 10-Q, and 8-K. Other factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include the risks that its compact flash cards may not be compatible or perform in the manner anticipated; customer use of compact flash cards may not grow as anticipated; and new and changing technologies may limit the applications of compact flash cards. SimpleTech undertakes no obligation to release publicly any revisions to forward-looking statements to reflect events or circumstances after the date hereof.

(a) Type II cards, at 5 mm thickness as opposed to 3.3 mm in Type I, enable higher capacities and are ideal for applications such as digital cameras and music players.

CONTACT: SimpleTech, Inc., Santa Ana
Barbara Pronin (media), 949/260-8219
[e-mail]
or
Mitch Gellman (investors), 949/260-8328
[e-mail]