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Thursday, 08/29/2002 11:57:06 AM

Thursday, August 29, 2002 11:57:06 AM

Post# of 93821
e.Digital Provides Reference Design for New Classic DP200 DigitalPlayer/Recorder Now Available At Circuit City

SAN DIEGO, Aug 29, 2002 (BUSINESS WIRE) -- e.Digital Corp. (OTCBB:EDIG), a global provider of comprehensive digital product development and designs, and Musical Electronics, Ltd., a major Asian OEM manufacturer with annual sales totaling $160 million, today announced that the Classic DP200 personal digital player and recorder is now available at Circuit City.

The Classic DP200 uses e.Digital's reference design technology and was created under e.Digital's strategic alliance with DataPlay(TM) and licensed to Musical Electronics under e.Digital's multi-year licensing agreement with Musical.

The e.Digital MicroOS(TM)-powered DataPlay personal digital player and recorder by Classic comes with 500 MB of memory and plays up to eight hours of digital quality music. Users can load their favorite songs onto their computer and record them onto blank DataPlay digital media. The micro-thin, removable DataPlay digital media -- about the size of a quarter -- makes it easy for music enthusiasts to carry their music files with them.

The Classic DP200 features superior sound quality, large storage capacity, a USB 1.1 connection, and support for both MP3 and Windows Media(TM) file formats. The unit is field upgradeable to support other popular formats as they become available. The Classic DP200 ships with software, one 500 MB DataPlay blank digital media, headphones, carrying case, rechargeable Lithium-Ion battery and power adapter.

Fred Falk, CEO of e.Digital, said, "The Classic DP200 represents the culmination of a combined effort among e.Digital, DataPlay and Musical to develop a revolutionary new personal data player and recorder design that can be adapted to a number of OEM industrial designs. The Classic DP200 is the second digital audio product Musical Electronics has brought to the market using e.Digital technology."

"DataPlay is very excited to see the Classic DP200 at Circuit City. e.Digital and Musical have worked hard to help bring one of the first DataPlay-enabled products to the market and consumers," said Todd Oseth, senior vice president of marketing and business development for DataPlay.


About DataPlay

DataPlay Inc. was incorporated in November 1998 to develop a Web-enabled digital content recording and distribution media for portable Internet appliances and hand-held consumer entertainment devices. Visit DataPlay on the Internet at www.dataplay.com.


About Musical Electronics Ltd.

Established in 1976, Musical Electronics Ltd. is a Hong Kong-based ISO 9002 certified company with 650,000 square feet of vertically integrated manufacturing facilities in China. Musical manufactures and distributes a full line of ODM/OEM digital audio, digital imaging, car navigation and telecommunication consumer electronics products. Musical's export markets are North America and Europe.


About e.Digital

e.Digital Corp. designs, licenses, brands, manufactures, and sells digital audio products and technologies. The company's trademarked digital audio players include the MXP(TM) 100, Treo(TM) portable digital jukebox line, Silhouette(TM) ultra-slim MP3-CD player, and Odyssey(TM) line of flash- and hard disk drive-based players. The company also 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: All statements made in this document, other than statements of historical fact, are forward-looking statements. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the businesses of the Company and the industries and markets in which the company operates. Those statements are not guarantees of future performance and involve risks, uncertainties and assumptions that will be difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by those forward-looking statements. Factors that may affect the Company's businesses, financial condition and operating results include future products and results, technological shifts, potential technical difficulties that could delay new products and services, competition, pricing pressures, the uncertainty of market acceptance of new products and services by OEM's and end-user customers, effects of changes in the economy, consumer spending, the ability of the Company to maintain relationships with strategic partners and suppliers, the ability of the Company to timely and successfully develop, maintain and protect its technology and product and service offerings and execute operationally, the ability of the company to attract corporate financing and the ability of the Company to attract and retain qualified personnel. These factors may also include, but are not limited to, general market conditions, the Company's ability to develop new products to meet market demand, the Company's ability to maintain cost controls, the mix of products and services the Company's customers require and the effects of natural disasters, international conflicts and other events beyond the Company's control. More information about potential factors that could affect the Company can be found in its most recent Form 10-K, Form 10-Q and other reports and statements filed by e.Digital with the Securities and Exchange Commission ("SEC"). e.Digital disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated by it.

Note: e.Digital and MicroOS are trademarks of e.Digital Corp. All other company, product, and service names are the property of their respective owners.



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