e.Digital Corporation (fka EDIG)

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SecureMedia and DivXNetworks Extend Encryptonite License Agreement

- SecureMedia's Patented Encryption Technology Helps Secure DivXNetworks Open Video System for Video-on-Demand Over IP Networks

Natick, MA August 13, 2002 SecureMedia, Inc. today announced that it has extended an existing agreement with DivXNetworks, Inc. for licensing of SecureMedia's Encryptoniteä digital content encryption technology. DivXNetworks, the technology company that created the revolutionary patent-pending DivX video compression technology, has been using Encryptonite as the encryption cipher component of the DivX Open Video System video-on-demand solution.

The DivX Open Video System is the world's first and only solution for the protected distribution of video-on-demand over broadband IP networks using DivX technology. Currently live with over 20 content providers and well over a thousand pieces of content, the secure video-on-demand service enables consumers with high-speed Internet connections to purchase rentals of selected films and begin viewing the film almost immediately. The DivX Open Systems employs Encryptonite technology to encrypt content in addition to a proprietary DivX digital rights management (DRM) solution that includes geographic region enforcement, business rules and key management, key rotation and several other techniques. Compatible with the international MPEG-4 standard, DivX video compression technology has become the de facto standard for digital video, providing an amazing 7:1 compression ratio from MPEG-2 file sizes while giving full-screen, DVD quality playback.

SecureMedia provides excellent encryption technology for the component-based digital rights management system we've built at DivXNetworks, said Eric Grab, Director of Engineering at DivXNetworks (www.divxnetworks.com).

SecureMedia's patented Encryptonite technology enables persistent protection of digital content from the point of content origination to the point of consumption. Encryptonite was designed specifically to address the security requirements of leading content owners for distribution of their media assets through broadband IP networks. Encryptonite can secure virtually any media type and format without adding any measurable overhead to the content file itself. SecureMedia provides the Encryptonite technology in an easy-to-use Software Development Kit package.

“We are very pleased to be extending our business association with DivXNetworks where our core encryption technology will be applied to the high quality video distributed through the Open Video System, said Fred Ellis, CEO of SecureMedia. Our implementation with DivXNetworks reflects the open platform, media agnostic nature of our Encryptonite security solutions.

About DivXNetworks
DivXNetworks is a leading technology company that enables the rapid proliferation of video content over Internet Protocol (IP) networks by combining the lightweight, ubiquitous access of the Internet with DVD-quality video performance. The company’s approach is built upon the success of the DivX™ codec, a leading standard for MPEG-4 video distribution with over 60 million users worldwide, and the DivX Open Video System, a next-generation content delivery system that provides unsurpassed aggregation, promotion, and distribution of video content for mass markets. DivXNetworks is headquartered in San Diego, California, with a satellite office in Los Angeles. For more information about DivXNetworks, visit http://www.divxnetworks.com.

About SecureMedia, Inc.
SecureMedia, www.securemedia.com, is a leading provider of open platform, media agnostic encryption and rights management solutions for the delivery of video-on-demand and other digital content over broadband IP networks. The Company provides a range of content security solutions from the comprehensive Encryptonite Systemä digital rights management solution to software toolkits, hardware cores and plugins for third party media delivery systems. SecureMedia’s customers represent industry leaders and include NTT, Sumitomo, DivXNetworks, Equator Technologies, Picosoft and RealNetworks. SecureMedia has offices in Boston, San Francisco and Auckland, New Zealand with a representative in Tokyo, Japan.