e.Digital Corporation (fka EDIG)

[Tenderloin]

DIVXNETWORKS AND ADS PARTNER FOR HOME VIDEO ENTHUSIASTS
For more info visit http://www.divxnetworks.com

Innovative Device Enables Consumers to Capture, Record and Create Video in DivX Format Through Bundled Video Editing Software


DivXNetworks, Inc., the company that created the revolutionary, patent-pending DivX® video compression technology, and ADS Tech, a world leader in Universal Serial Bus and IEEE-1394/FireWire solutions, today announced a licensing partnership. The agreement enables the new ADS Tech Instant VideoMPX USB 2.0 video capture device to capture, record and edit high-quality DivX video files.

Instant VideoMPX is a complete hardware/software solution that lets Windows XP users capture the high quality of uncompressed video over a high-speed USB 2.0 connection. Once video is captured, the bundled VideoStudioO 8 video editing software from DivX Licensed Software partner Ulead® enables the creation, recording, and editing of videos in the popular DivX format. Simply by setting the capture options, users can record direct to DivX to create content that can be played back on their PC and then burned to a CD, saved to flash memory media or played on a DivX Certified device.

'By including DivX technology with Instant VideoMPX, consumers will be able to record two hours of video on a single 700MB CD without sacrificing quality,' said ADS Tech's President Mike McCoy. 'This is a key benefit for the millions of users who have notebooks and other portable video playback devices that support the DivX format.'

Often called the 'MP3 of video,' DivX is among the world's most popular video technologies with over 120 million global users. The superior compression and visual quality of DivX video enables users to store and distribute DVD-quality videos at 1/10th the size of MPEG-2, the DVD standard. Through the DivX Certified program for consumer electronics devices, over 20 million DVD players, portable video players and handheld devices from major manufacturers will ship in 2004 that support the full playback of DivX video files.

'DivXNetworks is pleased to partner with ADS Technologies to bring DivX functionality to the high-performance Instant VideoMPX device,' said DivXNetworks' Senior Manager of OEM Sales Chester Ng. 'By giving their users the ability to compress and record their home videos in DivX and then transfer those files throughout the full DivX Ecosystem of platforms and devices, ADS Tech is creating a complete connected video experience.'

About DivXNetworks
DivXNetworks is a consumer-focused video technology company positioned at the center of multimedia convergence. The company's core offering is the DivX ® video codec, among the world's most popular video compression technologies with over 120 million users worldwide. Often called 'the MP3 of video,' the patent-pending DivX video technology offers DVD-quality at 10 times greater compression than MPEG-2 files, enabling full length films to easily fit on a CD or be delivered over broadband connections. DivX video technology powers a range of applications that span the convergence value chain, from a secure IP-based video-on-demand solution to next-generation consumer electronics products and video software applications. DivXNetworks is headquartered in San Diego, California, with satellite offices in Los Angeles and San Jose, CA, Taipei, Taiwan, Tokyo, Japan, Guildford, England and Dortmund, Germany. For more information, visit http://www.divxnetworks.com.

About ADS Technologies
ADS Technologies is a world leader in Universal Serial Bus and IEEE-1394/FireWire solutions. Since 1992, the company has introduced high-quality multimedia, networking and presentation products at consumer-friendly prices. The company's award-winning USB product line includes eleven complimentary peripherals and its USB Port for Desktops is the world's best-selling USB PCI host card. PYRO 1394DV, the first consumer-priced digital video editing solution on the PC market, has been widely adopted by owners of digital video camcorders for its ease-of-use for first time DV editors, its functionality and its low cost. ADS Technologies' products are distributed by Ingram Micro in the United States, Canada and Europe. ADS Technologies' products are available in nearly 3,000 consumer electronic and computer retail stores and through OEM private label customers around the world who market ADS Technologies products under their own brand name. For more information, please visit the Web site at http://www.ADStech.com or phone: [phone]. In Southern Europe, contact ADS Tech at tel: [phone] or email Eric Kebani at [e-mail].