Replies to post #9168 on e.Digital Corporation (fka EDIG)

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.DIGITAL CORPORATION AND BANG & OLUFSEN ENTER INTO LICENSING AGREEMENT

http://www.fernbach.de/html/beosound%202.html

e.Digital to Supply Licensed Custom Product Platform to Bang & Olufsen for Branded Music Products

(SAN DIEGO - July 12, 2001) - e.Digital Corporation (OTC: EDIG), a global provider of comprehensive digital product development and designs, and Bang & Olufsen, a premier European audio/video company, today announced that the two companies have signed a royalty-bearing licensing agreement. Under the agreement, e.Digital will customize and provide to Bang & Olufsen a MicroOS™-based custom product platform for use in Bang & Olufsen's branded music product line. The agreement also calls for non-recurring engineering fees to be paid to e.Digital.

Fred Falk, president and CEO of e.Digital, said, "Bang & Olufsen has earned a great reputation for innovation in their 75-year history. This is an excellent opportunity for our platforms and our MicroOS technology to become the basis for new products from Bang & Olufsen that continue to break barriers in the consumer electronics and audio/video world." He continued, "We are pleased with this relationship, and look forward to the revenue stream we expect to receive as B&O takes products to the consumer market later this year."

Mr. Poul Henrik Soejberg, Managing Director, Bang & Olufsen Multimedia A/S, added, "We are always looking for partners who demonstrate an understanding of the future of the industry. e.Digital's unique designs and streamlined approach to hardware and software development will strengthen our development program to create and manufacture revolutionary new products."

About Bang & Olufsen
Bang & Olufsen, a premier European electronics, telephony, and audio/video manufacturer, trades on the Copenhagen Stock Exchange. Bang & Olufsen celebrated its 75th anniversary in 2000, and derives the predominant share of its revenue and earnings from its audio/video business. The Company's divisions include AudioVisual, Multimedia, Telecom, and Medicom. For more information on Bang & Olufsen , please visit www.bang-olufsen.com.

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. 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™ and MicroCAM™ technologies to custom software and hardware development, industrial design and manufacturing services. For more information on the company, please visit www.edig.com.



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

CONTACTS:
e.Digital Corporation: Robert Putnam, [phone], [e-mail]
Fleishman-Hillard (Media Relations for e.Digital): Erin Cecil, [phone], [e-mail]