e.Digital Corporation (fka EDIG)

[cksla]

Consumer Electronics Association Recognizes PortalPlayer's
Excellence in Design and Engineering at CES 2004

Santa Clara, Calif., December 15, 2003--PortalPlayer, Inc., the the company that enabled the fast-growing music jukebox market, today announced that it has received the prestigious Consumer Electronics Association (CEA) Innovations 2004 Design and Engineering Showcase Honoree Award in the Software/Embedded Technologies category. As a winner, the company's Audio Jukebox Platform will be showcased alongside other award-winning products during the International Consumer Electronics Show (CES) in the Innovations Silver Exhibits, #70311, January 8-11, 2004 in Las Vegas, Nevada. For those unable to attend the exhibits, award-winners can be seen by visiting http://www.CESweb.org/Innovations.

"We are honored to have the Consumer Electronics Association recognize our Audio Jukebox Platform for its superior design and engineering excellence," said Gary Johnson, president and CEO of PortalPlayer. "This award, along with our leading market share, further reinforces the significant contribution our technology has played in enabling the portable audio market over the last three years."

The PortalPlayer Audio Jukebox Platform is the industry's only integrated silicon and software solution for designing next generation entertainment products such as portable digital music devices, general audio systems and streaming audio receivers. This complete platform includes a system-on-chip (PP5002D), firmware, and a PC-based digital media manager software development kit (SDK). Based on a scaleable, fully customizable architecture, the PortalPlayer platform gives OEMs and ODMs the flexibility to build multiple versions of products from a single base design.

The leading computer and electronics manufacturers have used the PortalPlayer jukebox platforms to create this new product category of portable music devices including recent market entries: Philips, RCA, Rio and Samsung.

PortalPlayer continues its product innovation, as recently signified by the adoption of PortalPlayer platform technology in the Rio Karma, which is the first Ethernet-enabled portable audio jukebox to share music with PCs within the home network. Rio Karma is very small pocket-sized unit and connects to a dock to the audio receiver, enabling people to enjoy their complete Karma-based music library on their home stereo or computer in another room through the network.


About PortalPlayer


PortalPlayer, Inc. is personalizing digital entertainment by providing complete platforms for computer and consumer electronics manufacturers to design innovative portable products that integrate audio and photo capabilities. The company's award-winning, flexible silicon and software platform has been adopted by the majority of leading audio jukebox manufacturers worldwide by providing superior features and unmatched flexibility, and enabling rapid time to market. Founded in 1999, PortalPlayer is a privately-held company with offices in Santa Clara, California; Charlotte, North Carolina, Seattle, Washington; and Hyderabad, India.

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e.DIGITAL AND PORTALPLAYER TO CO-DEVELOP DIGITAL AUDIO PRODUCTS FOR CONSUMER ELECTRONICS MANUFACTURERS
1/10/2003 - e.Digital Corporation (OTC: EDIG) announced a development and co-marketing partnership with PortalPlayer, Inc. As a PortalPlayer Design Partner, e.Digital plans to develop new digital audio products combining PortalPlayer's single-chip integrated circuit for music encoding and playback with e.Digital's reference designs. As part of the agreement, PortalPlayer will refer pre-qualified OEM customers to e.Digital for product development using PortalPlayer's chip set.
"Researchers from IDC forecast that the digital audio market will exceed 200 million units worldwide by 2006, presenting a great opportunity for OEMs who can deliver compelling and powerful entertainment devices," said Michael Maia, vice president of marketing for PortalPlayer. "We qualified e.Digital as one of our charter Design Partners because of their ability to speed manufacturers' time-to-market and expertise in system integration, firmware development, and project management."

Fred Falk, president and CEO of e.Digital, said, "We are pleased to continue our tradition of incorporating new technologies with our MicroOS" to create useful applications and attractive products for OEM customers. Being a charter company in PortalPlayer's Design Partners Program puts us in a position to help OEM customers navigate emerging industries, determine the quickest path to product completion, and launch a number of different products with the latest features. It opens the door for revenue-producing opportunities from a broader customer base."

The PortalPlayer Design Partners Program provides a fast track to new system designs by giving OEMs access to the engineering resources and complementary intellectual property of its qualified partners, and PortalPlayer's system-on-chip (SoC) platforms, firmware, system architecture, and PC-based digital media management applications. Using PortalPlayer's platforms as a starting point, Design Partners work with OEMs to quickly and cost-effectively build differentiation into next generation products.