e.Digital Corporation (fka EDIG)

[emit]

26 Mar 2002, 02:11 PM EST

SAN DIEGO, Mar 6, 2002 - e.Digital to Design, Develop, Manufacture, and Deliver Eclipse-Branded
Products for Automotive Infotainment and Telematics Systems. Eclipse by Fujitsu Ten automotive audio and infotainment products and technology received prestigious Audio Sound Grand Prix Awards in 2000 and 2001. Eclipse is
the fastest growing brand in the car stereo world.
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From the amended S3 - Also in March 2002, we announced that we had entered into a Development and Manufacturing Agreement with Eclipse by Fujitsu Ten, a car stereo company. Under the agreement, e.Digital will receive NRE fees for design and development services, as well as revenues for the manufacture and delivery of Eclipse-branded audio products. Specifically, the agreement provides that e.Digital will provide Eclipse by Fujitsu Ten with engineering services to integrate file management and compressed audio management technology designed by e.Digital into an advanced automotive audio system. Eclipse refers to their automotive audio system as an "infotainment" platform because it includes not only a radio and CD Player, but also may -

(i) connect wirelessly to the Internet to download music or other data,

(ii) store, organize, retrieve, and play back data, including digital audio files, from a hard disk drive,

(iii) connect wirelessly to a user's home personal computer while parked in the driveway for purposes of downloading and/or uploading music or other information,

(iv) record radio signals to a built-in hard disk drive as they are received and

(v) recognize the driver's voice commands to perform a variety of operations.

Prior to entering into the Development and Manufacturing Agreement, we had collaborated with Eclipse by Fujitsu Ten for several months to develop and deliver state-of-the-art automotive OEM and aftermarket infotainment systems integrating the latest digital audio, voice recognition, data storage, video, and wireless Internet technologies for sale under the Eclipse brand name. The first system was unveiled at the 2002 International Consumer Electronics Show in Las Vegas January 8 -- 11.