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09/29/03 8:54 PM

#47362 RE: rstring #47361

High Defination, multi-codec and other words keep popping up in different places.

e.DIGITAL CORPORATION ANNOUNCES NEW OEM SOLUTION FOR
MULTI-CODEC HIGH DEFINITION VIDEO DEVICES



e.Digital To Use Equator Technologies’ BSP-15 Video-Centric SOC Chip to
Meet Growing Demand from OEM Customers and Licensees


(SAN DIEGO, CA - January 8, 2003) - e.Digital Corporation (OTC: EDIG) today announced a next generation, multi-codec, high definition, customizable video solution for OEM- branded home entertainment products. The solution incorporates Equator Technologies’ BSP-15 video centric system-on-a-chip video processor with e.Digital’s technology, design, and user interface. Products incorporating the e.Digital video solution will feature the ability to play DivX, MPEG-4 video, Microsoft’s Windows Media Video, and/or traditional DVD formats, and will play motion pictures from a DVD or built-in hard drive.

"This video platform has the potential to be the core of the next generation of home entertainment products with a flexibility and affordability not previously available," said Atul Anandpura, vice president of research and development for e.Digital. "Equator’s proprietary video processing chipset and our technology and engineering expertise are being combined to address the emerging OEM market for new home video products handling multiple codecs and featuring high definition capabilities. Our new, customizable solution is already attracting OEMs who have scheduled private demonstrations at the International Consumer Electronics Show in Las Vegas this week."


About e.Digital
e.Digital Corporation designs, licenses, brands, manufactures, and sells digital audio products and technologies. The company's trademarked digital audio players include the MXP TM 100, TreóTM portable digital jukebox line, SilhouetteTM ultra-slim MP3-CD player, and OdysseyTM line of flash- and hard disk drive- based players. e.Digital launched WeDigMusic.com to complement its digital audio players by providing consumers with a one-stop-shop for streaming and downloading music from thousands of artists on the Web. 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 MicroOSTM 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 in the e.Digital online store, please visit www.edigital-store.com.


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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. 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.

Editors Note: e.Digital is a trademark of e.Digital Corporation. All other company, product, and service names are the property of their respective owners. Equator is a trademark of Equator Technologies, Inc. DivX is a trademark or registered trademark of DivXNetworks, Inc. Windows and Windows Media are trademarks of Microsoft Corp. All other trademarks or registered trademarks are the property of their respective owners.

CONTACT:

Robert Putnam, (858) 679-1504, robert@edig.com