e.Digital Corporation (fka EDIG)

[Tenderloin]

Cornice Introduces One-Gigabyte Storage Element; Storage Innovator's Product Offerings Enable A Wide Range Of Low-Cost Consumer Electronic Products

LONGMONT, Colo.--(BUSINESS WIRE)--May 24, 2004--Cornice Inc., an innovator in compact, high-capacity storage, today broadened its successful product line with the immediate availability of a 1.0-gigabyte version of its Storage Element (SE). The Cornice SE is now available in three capacities: 1.0-, 1.5-, and 2.0-gigabytes. Since its introduction in June of 2003, the Cornice SE has enjoyed rapid adoption in consumer electronic (CE) devices from industry-leading brands including Philips, RCA, Rio, and Creative Labs.


"Cornice has been very successful in providing storage technologies for products sold primarily at major consumer electronics stores and e-commerce sites," said Kevin Magenis, president and CEO of Cornice. "With this new one-gigabyte Storage Element, Cornice is offering another compelling alternative to higher-end flash-based products, enabling manufacturers to begin developing and selling affordable, enjoyable, consumer electronic devices through mass-market retailers."

New Storage Element Increases Design Options For Affordable CE Devices

Cornice's new 1.0-gigabyte Storage Element addresses a segment of the CE device market typically served by larger amounts of expensive flash memory that offer 256 megabytes of data storage and above.

The Cornice 1.0-gigabyte SE enables a new market for MP3 players. Consumer devices can now be manufactured to offer more than 250 songs in a sleek, affordable package, sold below the current retail price of today's popular flash-based players that offer only a quarter of that capacity.*

Cornice Announces 1.0-Gigabyte Storage Element

The 1.0-gigabyte SE also creates new opportunities for USB keychain memory devices, where one-gigabyte of flash-based storage currently commands more than $300 at retail. Similar devices based on the new 1.0-gigabyte SE could be sold at less than half that cost.

By carrying out a fundamental re-evaluation of how portable storage devices should be designed and manufactured, Cornice has achieved the industry's lowest cost for high-capacity storage for products in the consumer electronics marketplace. By re-examining the mechanics and electronics of storage devices, Cornice is able to create an inexpensive storage solution that is compact, durable, and optimized for portable electronic devices.

Availability

The 1.0-gigabyte Cornice SE is immediately available. Pricing is based on volume in quantities of 100,000 and greater. Products utilizing this SE are expected to be on retail shelves as early as July 2004. Email Cornice's sales department at [e-mail] or call [phone] for further information.

About Cornice

Cornice Inc. is an innovator in small, compact, low-cost, high-capacity storage that enables a new generation of pocket-able consumer electronic devices for the world's leading brand-name manufacturers. The Cornice Storage Element (SE) is durable, integrated, personal storage that brings new levels of affordability and content capacity to these devices.

Early investors in Cornice include the company's founders, management team, and Texas Instruments. The Company has received venture investments from BA Venture Partners, CIBC Capital Partners, GIC Special Investments, Nokia Venture Partners, and VantagePoint Venture Partners. Privately held, Cornice maintains its headquarters in Longmont, Colorado. Visit Cornice at http://www.corniceco.com/.

* Source: Major consumer electronics retailer Web sites