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Lucent Technologies and e.Digital Corp. select SanDisk to supply CompactFlash cards for portable EPAC Internet music player


FOR RELEASE WEDNESDAY MAY 26, 1999

MURRAY HILL, NJ and SAN DIEGO, CA - Lucent Technologies (NYSE: LU) and e.Digital Corporation (OTC: EDIG) announced today that they have selected SanDisk Corporation (NASDAQ:SNDK) to supply its 32-megabyte (MB) CompactFlash Card memory for use in their new secure EPAC (Enhanced Perceptual Audio Coding) Internet music player.

Lucent and e.Digital are jointly offering to OEM customers licensing of their reference design as well as the handheld solid-state music player. A 32-MB SanDisk CompactFlash (CF) Card will be included with each EPAC Internet music player sold.

More than 165 products with specific slots for solid-state CF cards have been introduced thus far, making it the most popular small-size storage card in the industry. SanDisk, which invented CompactFlash, sells CF cards in capacities ranging between 4 and 96MB.

The new pocket-sized EPAC Internet music player will provide CD-transparent quality play back and could include an FM radio tuner. Initially, the device will be bundled with one 32MB CompactFlash card and OEM customers will offer additional 32MB retail CompactFlash cards as accessories.

The new EPAC Internet music player is scheduled to ship to OEM customers in the fourth quarter of 1999. Also included with each sale will be EPAC encoding software and a CompactFlash card reader/writer external drive for desktop computers. SanDisk branded flash cards are sold in over 10,000 stores worldwide.

"We chose SanDisk as our flash memory card vendor because of their leadership in this market," said Joyce Eastman, director of audio initiatives in Lucent's New Ventures Group. "We are taking the current generation of portable players to the highest levels of audio quality and design.

"Together with e.Digital and SanDisk, we have designed an EPAC player that offers excellent sound quality and copyright protection," she said.

Fred Falk, president of e.Digital, said, "We are pleased to expand our ongoing relationship with SanDisk, the leader in flash memory for data storage. We chose the CompactFlash card for its small form-factor, high capacity, serialization feature, simple interface and reliability. Our SDMI (Secure Digital Music Initiative)-compliant music player features our patented MicroOS™ flash file system and plays music stored in Lucent's EPAC audio format, which offers high security features and excellent sound quality."

"With SanDisk CompactFlash being selected as the storage media for the EPAC music player, we are continuing to establish a strong foothold in the Internet music player market," said Nelson Chan, vice president of marketing at SanDisk.

"SanDisk has worked very closely with Lucent Technologies and e.Digital to establish a reference design, which we believe will spark new design wins for our CompactFlash card. We are pleased to be working with market innovators like e.Digital and Lucent and plan to continue this relationship for future products in this market," he said.

"Market research firms project that more than one million Internet music players will be sold next year, followed by sales of about eight million units the following year. Both our CompactFlash and MultiMediaCard are ideal storage solutions for these ultrasmall Internet music players. Both cards also include SanDisk's unique serialization, which provides copyright protection," Chan said.

Lucent Technologies, headquartered in Murray Hill, N.J., designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronic components. Bell Labs is the research and development arm for the company. For more information on Lucent Technologies, visit the Web site at http://www.lucent.com.

e.Digital Corporation offers an engineering partnership for the world's leading electronics companies to link portable digital devices to PC's and the Internet. Engineering services range from the licensing of e.Digital's multi-patented MicroOS™ file management system to custom software and hardware development and manufacturing services. For more information on e.Digital, visit http://www.edig.com.

SanDisk Corporation, the world's largest supplier of flash data storage products, designs, manufactures and markets industry-standard, solid-state data, digital imaging and audio storage products using its patented, high density flash memory and controller technology. SanDisk is based in Sunnyvale, CA. Its SanDisk's Web site/home page address: http://www.sandisk.com.