e.Digital Corporation (fka EDIG)

[gernb1]

Low-cost digital memory card line slated for release
Business Wire (January 8, 2002)

LAS VEGAS, Jan 8, 2002 (BUSINESS WIRE) -- Thomson multimedia (Paris
Euroclear:18453) (NYSE:TMS), provider of a wide range of audio and video
technologies to consumers and professionals in the entertainment and media
industries, will soon bring a range of affordable, easy-to-use Digital Memory Cards to
market in 2002. This new type of write-once digital semiconductor memory will mean
lower suggested retail prices, convenience, and security for consumers who use
digital cameras, mp3 players and other portable devices.

The new write-once memory cards will be marketed under Thomson's Technicolor
brand name. As the leading global provider and distributor of entertainment media
solutions and services in a variety of formats - including film, DVD, videocassette, and
digital cinema - Technicolor has extensive experience delivering trusted, high-quality
media solutions. Technicolor Digital Memory Cards offer write-once convenience and
security, will come in standard flash formats and sizes, and will work
interchangeablely with existing flash cards. By offering these new memory cards to
consumers, Technicolor provides a valuable digital storage solution alternative that is
uniquely affordable, convenient, and secure.

"As the digital imaging and portable digital music markets grow, we're anticipating the
desires of mainstream consumers who want a more convenient way to store and use
files, and a more secure digital copy of those valuable photographs and mp3 files.
With Matrix 3-D Memory, we can offer Technicolor Digital Memory Cards in familiar
formats and sizes that are convenient, secure, and much lower in cost," said
Thomson's David Geise, Vice President - Accessories Products.

Today, a conventional flash memory card typically represents half the cost of a small
mp3 player and a large portion of a digital camera's system cost, and users of both
must be tied to a PC. By significantly reducing the memory cost and simplifying the
user experience, Technicolor Digital Memory Cards offer a mass-market product with
suggested retail pricing that will be comparable to buying today's 35mm film.

The new Technicolor memory product is an archival memory product designed to store
information securely for many decades. These solid-state cards ideally meet the
requirements of portable electronic products: ruggedness, low system costs, small
form factor, and low power consumption.

"Thomson has recognized the market opportunity for low-cost, convenient, storage for
portable consumer electronics. Today's digital solutions are not yet as easy to use as
consumers would like. With these new Technicolor Digital Memory Cards, Thomson
and Matrix are well positioned to exploit the large new market opportunity for very low
cost solid-state memory cards," said Dennis Segers, President and CEO of Matrix
Semiconductor. "Our success will enhance digital imaging and audio in the mass
market."

Matrix 3-D Memory is the first product based on Matrix Semiconductor's breakthrough
3-D technology. By building ultra-dense chips in three dimensions, Matrix can provide
dramatically lower cost chips. For more information on Matrix and this technology
breakthrough, please visit http://www.matrixsemi.com/.

This press release contains forward-looking statements regarding prospects for the
future that involve a number of risks and uncertainties. Among the factors that could
cause actual income to differ materially from those expected are the following:
business conditions and general economic conditions, competitive factors such as
pricing and marketing efforts of rival companies; timing of product introductions; ability
of contract manufacturers to meet product price objectives and delivery schedules;
legislative, regulatory and industry initiatives that may affect planned or actual product
features and marketing methods; and the pace and success of product research and
development. For more information on the potential factors that could affect the
company's financial income, please review the relevant SEC filings.

About Thomson multimedia

With sales of 9.1 billion Euros (U.S. $8.3 billion) in 2000 and 73,000 employees in
more than 30 countries, Thomson multimedia (Paris Euroclear: 18453) (NYSE: TMS)
provides a wide range of video (and enabling) technologies, systems, finished
products and services to consumers and professionals in the entertainment and
media industries. To advance and enable the digital media transition, Thomson
multimedia has five principal activities; Digital Media Solutions, Displays and
Components, Consumer Products, Patents and Licensing and New Media Services.
The company distributes its products under the THOMSON, RCA and TECHNICOLOR
brand names. For more information: www.thomson-multimedia.com.

Thomson multimedia Press Relations Marc Meyer Tel : [phone]
[e-mail] Dave Arland Tel : [phone] [e-mail] Thomson
multimedia Investor Relations Stephane Rougeot Tel: [phone]
[e-mail]

About Matrix Semiconductor

Founded in 1998, Matrix Semiconductor, Inc. (Santa Clara, Calif.) has developed the
means to create three-dimensional semiconductors using standard manufacturing
techniques and materials. By optimizing use of a semiconductor wafer's area --
building "up" rather than "out" -- Matrix's 3-D technology produces ultra-dense chips for
high-volume markets at dramatically lower costs than comparable technologies.
Matrix's first product based on the technology, Matrix(TM) 3-D Memory (3DM) will
combine the compact size, ruggedness, and low system cost of solid-state electronics
with the cost-per-megabyte of disk technologies. Comparable in cost and usage
model to 35mm film, audiotape, and other traditional consumable media, Matrix 3-D
Memory will enable the first mass-market semiconductor consumable. The company
has received over $80 million in funding from Benchmark Capital, Skymoon Ventures,
Microsoft, and multiple world-leading consumer electronics manufacturers. Find out
more at http://www.matrixsemi.com/.

Matrix Semiconductor Press Relations Melissa Selcher Tel: [phone]
[e-mail] Phase Two Strategies for Matrix Semiconductor Phil
Gomes Tel: [phone] [e-mail]

CONTACT: Thomson multimedia Press Relations

Marc Meyer, 331.41.86.5003

[e-mail]

Dave Arland, 317/587-4450

[e-mail]

or

Thomson multimedia Investor Relations

Stephane Rougeot, 331.41.86.5297