e.Digital Corporation (fka EDIG)

[101Dahlias]

FOR IMMEDIATE RELEASE ( don't know if this was already posted or not)

E.DIGITAL INTERNET MUSIC PLAYER DESIGN TO BE FEATURED
IN SD CARD™ ASSOCIATION PAVILION AT CES 2001


(SAN DIEGO, CA - January 4, 2001) - e.Digital Corporation (OTC: EDIG), a global provider
of comprehensive digital product development and designs, today announced that one
of its Internet music player designs incorporating the Secure Digital Memory Card
(SD Card) will be featured in the SD Card Association Pavilion at the international
Consumer Electronics Show (CES) in Las Vegas January 6-9, 2001. Over two dozen members
of the Association, formed in January 2000 by SanDisk, Toshiba, and Matsu****a, best
known by its Panasonic brand name, will display product designs using the extremely
compact and durable SD Card.

Fred Falk, President and CEO of e.Digital, said, "We are pleased to offer our OEM
customers a flexible Internet music player design that is one of the first to feature
the Secure Digital Memory Card. This design can be adapted to portable systems, or
built into automobile- or home-based digital music systems including set-top boxes.
As the Internet music marketplace strives to establish itself, security issues are
at the forefront. The SD Card helps address the concerns of manufacturers and the
music industry, providing improved protection for copyrighted content."

Raymond Creech, President of the SD Association, stated, "We are very proud of the
progress of the SD Association and our members, and we are happy to have e.Digital
take part in this opportunity. This Pavilion gives us a chance to collectively show
off the SD Card and highlight some of our members' offerings to the consumer electronics
industry. Visitors, customers, and the press will be able to see these products up
close and watch a short presentation featuring e.Digital and others incorporating
the SD Card in their designs."

The 3,250 square-foot SD Card Association Pavilion is located in the Las Vegas Convention
Center, North Hall, Booth #L5158.

e.Digital's MicroOS-based multi-codec Internet music player design is available for
licensing by consumer electronics manufacturers and other OEM partners. The flexible
design can be adapted to portable, home-based, automotive, or other stereo format
according to customer specifications. It includes multiple music codec support, removable
memory, and security features. The design is SDMI compatible.

About the SD Memory Card
The SD (Secure Digital) Memory Card is a highly-sophisticated memory device about
the size of a postage stamp. SD Memory Cards stand to revolutionize information,
entertainment and communications by putting advanced digital storage technology quite
literally at your fingertips.

SD Memory Cards are non-volatile, which means they do not require power to retain
the information stored on them. They are solid-state devices, so they have no moving
parts to skip or break down. They will offer an incredible combination of high storage
capacity (32 MB, 64 MB, or 128 MB, with the promise of up to 256 MB in 2001), fast
data transfer, great flexibility and excellent security. And of course, incredibly
small size.

About e.Digital
e.Digital Corporation provides original equipment manufacturers (OEMs) with comprehensive
product development services for the next generation of digital devices. e.Digital
offers an engineering partnership for the world's leading electronics companies to
link portable digital voice, music, video, photography, and text devices to PCs and
the Internet. Engineering services range from the licensing of e.Digital's patented
MicroOS™ file management system and reference designs to custom software, firmware,
and hardware development, industrial design and manufacturing services. For more
information on the company, please visit www.edig.com.

# # #

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 impact on 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 risk factors such as:
future products and results; technological shifts; potential technical difficulties
that could delay new products; competition; general economic conditions in the markets
in which the company operates; the ability of the company, its customers, and suppliers
to solve latent Year 2000 compliance issues; pricing pressures; and the uncertainty
of market acceptance of new products by OEM's and end-user customers.

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

CONTACTS:
e.Digital Corporation: Robert Putnam, [phone], [e-mail]
The MWW Group (for e.Digital): Matt Messinger, Public Relations, [phone],
[e-mail]
SD Association: Raymond Creech, President SDA, [phone], [e-mail],
www.sdcard.org
This message has been sent from E-Digital Inc
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