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Maycom's Powered-by-e.Digital Technology(TM) Product Features 128 MB CompactFlash(TM)

Powered by e.Digital technology, MP2000 comes with a suggested retail price of $169, including a removable 128 MB CompactFlash card. MP2000 has superb audio quality and louder output levels than most other portable music players on the market today. MP2000 also features a rugged, brushed aluminum case, an internal, rechargeable NiMH battery providing nearly seven hours of continuous music playback, and a backlit LCD screen.

Fred Falk, President and CEO of e.Digital, said, ``We are very pleased to announce the availability of the MP2000, which features superior clarity, loudness and battery life in a sleek pocket-sized product. MP2000 is another important extension of e.Digital's technology and showcases our ability to produce consumer electronics using a variety of memory options and technologies.

``We are proud to add the MP2000 to our existing MP3 player line that includes our e.Digital-branded MXP 100, which utilizes Microdrive storage media, and Treo 10, with its built in, miniature 10 GB hard disk drive (HDD). Holiday shoppers will find our entire selection of great sounding portable digital music players at our online store now.''

Based on e.Digital's MicroOS(TM), MP2000 supports MP3 and Windows Media(TM) file formats, and is field upgradeable to support other popular music formats as they become available. MP2000 measures only 3 3/4`` W x 2 1/4'' H x 1/2`` D. A quick-charge AC adapter included in the package fully charges the battery in only three hours.

To order your MP2000 for only $169, point your web browser to http://www.edigital-store.com and select ``MP3 Players''. The standard MP2000 package includes the MP2000 unit, AC adapter/battery charger, USB cable, and stereo earphones, and includes MusicMatch Jukebox software for encoding digital music files and e.Digital's MXP(TM) Music Explorer(TM) software for file organization and downloading.

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 with a focus on music players/recorders and portable digital voice 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: 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 OEMs 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.

Editors Note: e.Digital and MicroOS are trademarks of e.Digital Corporation. Microdrive is a trademark of International Business Machines Inc. Windows Media is a trademark of Microsoft Corporation. All other company, product and service names are the property of their respective owners. 

Contact:

     e.Digital Corporation
     Robert Putnam, 858/679-1504
     robert@edig.com
      or
     Fleishman-Hillard (Media Relations for e.Digital)
     Bridget Stachowski, 619/237-7717
     stachowb@fleishman.com