e.Digital Corporation (fka EDIG)

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e.Digital's Odyssey 1000 Establishes New Standard in Digital Entertainment
Technology-Rich Portable Audio Player Features Elegant Design, Intuitive User Interface
SAN DIEGO--(BUSINESS WIRE)--July 22, 2002--It's sleek, it's powerful, it has the capacity to download 4,800 songs, or 400 CDs, at lightning-quick speed -- and it's PC and Mac compatible. e.Digital Corporation (OTCBB:EDIG - News) today announced its new Odyssey 1000(TM) digital jukebox and data storage device, its premier digital audio player. Powered by e.Digital's MicroOS® 2.0, the Odyssey 1000 combines the best of e.Digital's digital audio technology into one stellar, feature-packed unit.

Jim Collier, President and COO of e.Digital, said, "The Odyssey 1000 sets the standard by which all other portable entertainment products will now be judged. It is the result of our first joint project with our strategic development partner Digitalway. It combines an elegant, world class industrial design from Digitalway's award-winning engineering team with e.Digital's state-of-the-art, patented audio technology. There is nothing else available that matches its elegant looks, full range of features, and cutting-edge Drag `n Rip(TM) technology."

The Odyssey 1000, which will be available to consumers this fall, boasts superb sound quality and outstanding battery life, with a minimum of 13 hours of playback time. The feature-rich Odyssey 1000 has a 20 Gigabyte hard drive for optimum MP3 and Windows Media(TM) WMA playback and doubles as a data storage unit for movies, spreadsheets, e-books, and more. Its stainless steel, sleek industrial design only enhances the aesthetic appeal of this digital audio powerhouse, which is small enough to fit in a pocket or purse.

The Odyssey 1000's high-speed USB 2.0 connection and remarkable ease of use make downloading and transferring music a breeze. With the Odyssey 1000's USB 2.0 connection, users can transfer an entire CD to their player in about 5 seconds. And e.Digital's Drag `n Rip technology enables users to transfer music in one easy step simply by dragging tracks directly from a CD directory onto their player's hard drive. Drag `n Rip optionally enables users to create a mirror library of music on their computer. The Odyssey 1000 also is compatible with Mac iTunes.

Another outstanding feature is the Odyssey 1000's voice navigation capabilities. The Odyssey 1000 uses e.Digital's VoiceNav(TM) user interface based on Lucent's speech recognition technology so users can navigate through their libraries of music simply by the power of their own voice. It also has an easy-to-use scroll wheel for effortless manual navigation. In addition, the Odyssey 1000 is a voice recorder that comes with a built-in microphone for hours of voice recording on its massive hard drive.

Collier added that, "This is a product that will have broad appeal to both Mac and PC users. It provides them with a full suite of features and advanced technology not currently available from any other product on the market. It also will be subscription enabled and fully compatible with our subscription content partners, soon to be announced. Its intuitive user interface and ease of navigation will appeal to all age groups. Anyone who likes music and books will love the Odyssey 1000."

Furthermore, the Odyssey 1000 comes with music preloaded by e.Digital's Broadband Entertainment Business Unit so users can immediately start enjoying music on their player. The Odyssey 1000 also has an FM tuner with 12 available station presets and 16 MB DRAM buffering for robust anti-skip protection and increased battery life.

The standard Odyssey 1000 package will include e.Digital Music Explorer(TM) 2.0 software for PC (featuring Drag `n Rip technology), carrying case with belt clip, an installation CD and manual, stereo earphones, USB 2.0 cable with standard and mini connectors, a universal DC adaptor/battery charger, and RCA audio cable for home stereo connection..

The Odyssey 1000's Drag `n Rip technology, voice navigation capabilities, and preloaded content make it absolutely unparalleled among its peers. The much-anticipated Odyssey 1000 will be available to consumers this fall.

The versatile Odyssey 1000 includes the following features:

Features:

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20 Gigabyte hard drive
13-hour minimum playback time
Mac and PC compatible
Mac iTunes compatible
Drag `n Rip copies music directly from CD to player
USB 2.0 high-speed download
Typical USB 2.0 transfer rate: 8 Megabytes per second (MBps)
Voice navigation using VoiceNav(TM) technology
Built-in microphone for voice recording
MP3, Windows Media(TM) (WMA), and WAV file playback
FM tuner with 12 preset stations
16 MB DRAM anti-shock buffering
Five-band equalizer with 5 presets and 1 user-defined setting
Approximate dimensions: 2.87" x 4.3" x 0.9" (73mm x 110mm x 22.8mm)
Blue backlit electro-luminescent LCD with adjustable settings
Internal real-time clock
WMA Digital Rights Management (DRM) support
Combined audio out and remote control jack
Multi-language support via firmware upgrade
Playlist creation through user interface
Firmware upgradeable
Lithium-Polymer rechargeable battery charges in 4 hours

About e.Digital

e.Digital Corporation offers an engineering partnership for the world's leading electronics companies to link portable digital devices to PCs and the Internet. e.Digital develops and markets to consumer electronics manufacturers complete end-to-end solutions for delivery and management of open and secure digital media with a focus on music, voice and video players/recorders, and automotive infotainment and telematics systems. Other applications for e.Digital's technology include portable digital music players and voice recorders; desktop, laptop, and handheld computers; PC peripherals; cellular phone peripherals; e-books; video games; digital cameras; and digital video recorders. Engineering services range from the licensing of e.Digital's patented MicroOS(TM) file management system to custom software and hardware development, industrial design, and manufacturing services. For more information on the company, please visit www.edig.com. To shop at the e.Digital online store, please visit www.edigital-store.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 affect 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 risks and uncertainties, including future products and results, technological shifts, potential technical difficulties that could delay new products, competition, general economic factors, and conditions in the markets in which the company operates, pricing pressures, the uncertainty of market acceptance of new products and services by OEM's and end-user customers, and other factors identified and discussed in the Company's most recent filings with the Securities and Exchange Commission. These forward-looking statements are based on information and management's expectations as of the date hereof. Future results may differ materially from the Company's current expectations.

Note: e.Digital, Music Explorer, MicroOS 2.0, Drag `n Rip, VoiceNav and Odyssey are registered trademarks of e.Digital Corporation. Windows Media is a trademark of Microsoft Corporation. All other company, product, and service names are the property of their respective owners.

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Contact:
e.Digital Corporation
Lisa Stevens, 858/679-1504 (Media)
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Robert Putnam, 858/679-3168 (Investor Relations)
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