e.Digital Corporation (fka EDIG)

[emit]

FOR IMMEDIATE RELEASE

E.DIGITAL CORPORATION ANNOUNCES NEW DIGITAL PLAYER/RECORDER USING IBM'S MICRODRIVE(TM) MEDIA

Product Based on e.Digital's MicroOS(TM) 2.0
with VoiceNav(TM) Speech Interface


(SAN DIEGO, CA - September 5, 2001) - e.Digital Corporation (OTC: EDIG), a global provider of comprehensive digital product development and designs, today announced a digital audio and music player/recorder incorporating IBM's Microdrive removable hard disk media. Based on e.Digital's new MicroOS 2.0 operating system, the ultra-portable product supports VoiceNav, e.Digital's natural speech-recognition user interface for performing navigation and playback functions. e.Digital's new compact product features digital music and voice recording and playback.

Steve Ferguson, Vice President of Sales & Marketing, said, "Our base model will come with a 340 MB IBM Microdrive with 512 MB- and 1 GB-capacity Microdrives as optional media. Consumers can store and organize up to 20 hours of high-quality digital music and/or studio-quality voice recordings on a 1 GB capacity Microdrive.

"This player fits the product niche between hard disk drive-based players and Flash memory card-based players. It is one of the first truly ultra-portable products using large capacity removable spinning media. A built-in buffer memory prevents audible skipping even during workouts and sporting activities. The product also supports SanDisk's CompactFlash(TM) removable media.

Jim Collier, Chief Operating Officer, stated, "Our exclusive MicroOS 2.0 upgraded operating system enhances file management capabilities and features more sophisticated power management to support our revolutionary VoiceNav speech recognition interface. Users can navigate through directories and playlists using natural speech commands. We believe our unique features, ingenious speech interface, and generous storage capacity make the e.Digital Microdrive player/recorder particularly attractive."

Fred Falk, President and CEO, added, "This Microdrive-based product utilizing a Texas Instruments' 54X DSP, appeals to OEM customers and consumers. While we license and support OEM's, we will respond to customer demand for our technology through various distribution channels. Production is already under way in Asia for OEM customers to meet demand for our MicroOS-based product in time for the holiday selling season. Our focus on offering complete end-to-end product development, delivery, and support significantly enhances our per-product revenue as well as our business of licensing our technology platforms to OEMs and other manufacturers for use in their branded products.

"We continue working with OEM partners and customers to incorporate new technologies and new storage media, including embedded miniature hard disk drives, Microdrives, Flash memory cards, and DataPlay digital media, into products, some of which are scheduled for consumer availability in time for the holiday selling season."

"With Fleishman-Hillard, we are coordinating a technology media relations program that will put these products in front of editors, hosts, readers, and audiences. Further announcements are scheduled that will detail price and availability of this and other Powered by e.Digital products."

About e.Digital
e.Digital Corporation offers an engineering partnership for the world's leading electronics companies to link portable digital devices to PCs and the Internet. e.Digital develops and markets to consumer electronics manufacturers complete end-to-end solutions for delivery and management of open and secure digital media with a focus on music players/recorders and portable digital voice recorders. Engineering services range from the licensing of e.Digital's patented MicroOS(TM) file management system to custom software and hardware development, industrial design and manufacturing services. For more information on the company, please visit www.edig.com.

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Safe Harbor statement under the Private Securities Litigation Reform of 1995: This document contains forward-looking statements relating to future performance, technology and product development that may affect future results and the future viability of the company. Actual results could be affected or differ materially from those projected in the forward-looking statements as a result of risks and uncertainties, including future products and results, technological shifts, potential technical difficulties that could delay new products, competition, general economic factors, and conditions in the markets in which the company operates, pricing pressures, the uncertainty of market acceptance of new products and services by OEM's and end-user customers, and other factors identified and discussed in the Company's most recent filings with the Securities and Exchange Commission. These forward-looking statements are based on information and management's expectations as of the date hereof. Future results may differ materially from the Company's current expectations.

Note: e.Digital and MicroOS are trademarks or registered trademarks of e.Digital Corporation. All other company, product, and service names are the property of their respective owners.

CONTACTS:

Robert Putnam
e.Digital Corporation
[phone]
[e-mail]

Bridget Stachowski
Fleishman-Hillard (Media Relations for e.Digital)
[phone]
[e-mail]

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