e.Digital Corporation (fka EDIG)

[Tenderloin]

America Online Licenses aacPlus v2 Audio Codec from Coding Technologies; aacPlus v2 Provides AOL with Enhanced Audio Quality at Very Low Bit-rates for the NSV Video Format

NEW YORK --(Business Wire)-- July 26, 2004 -- Coding Technologies, a leading provider of audio compression software for broadcast, mobile, and Internet, announced today that America Online has licensed its aacPlus v2 audio codec for use with its media delivery platform and the NSV file format. aacPlus v2 will enable AOL to efficiently deliver high-quality audio and audio-visual services at low bit rates to AOL members.

"We are focused on offering the very best media experience to our members and web users, in order to showcase the world class content available on AOL and AOL for Broadband, and throughout our various Web Properties," said Scott Brown, Director of Media Systems Development for America Online. "aacPlus v2 audio from Coding Technologies will help us to deliver the highest quality streaming audio and video via our efficient media platform."

"AOL has the largest online audience and the leading media infrastructure to support their vast array of content," said David Frerichs, Vice President and US General Manager for Coding Technologies. "Their adoption of aacPlus v2 will further accelerate the codec as the common denominator for distribution of audio content across Internet, mobile, and broadcast."

aacPlus is AAC coupled with Coding Technologies' SBR (Spectral Band Replication) and Parametric Stereo technologies. SBR is a unique bandwidth extension technique, which enables audio codecs to deliver the same quality at half the bit rate. Parametric Stereo enhances the codec efficiency a second time for low-bit-rate stereo signals. Both SBR and Parametric Stereo are backward and forward compatible methods to enhance the efficiency of any audio codec. As a result, aacPlus delivers streaming and downloadable 5.1 multichannel audio at 128 Kbps, near CD-quality stereo at 32 Kbps, excellent quality stereo at 24 Kbps, and great quality for mixed content down to 16 Kbps mono and below. This level of efficiency fundamentally enables new applications in the markets of mobile and digital broadcast.

About Coding Technologies

Coding Technologies provides the best audio compression for mobile, broadcasting, and Internet. SBR(TM) (Spectral Band Replication) from Coding Technologies is a backward and forward compatible method to enhance the efficiency of any audio codec; putting the "PRO" in mp3PRO and the "Plus" in aacPlus. Parametric Stereo from Coding Technologies and Philips again nearly doubles the efficiency of audio codecs for stereo signals at low bit rates. Products from Coding Technologies are fundamental enablers of open standards such as MPEG, Digital Radio Mondiale, HD Radio, and the DVD Forum.

Coding Technologies is a privately held company with offices in Sweden, Germany, and Silicon Valley. Founded in 1997 in Stockholm, the company later merged with a spin-off of the renowned Fraunhofer Institute in Germany, the inventor of MP3. Coding Technologies' customers include America Online, iBiquity Digital, mmO2, Nokia, Real Networks, SK Telecom, Thomson, Texas Instruments, Vodafone, and XM Satellite Radio.

For more info visit http://www.codingtechnologies.com.