Cornice Announces Asia/Pacific Distributors; Distributors Put In Place To Support Increased Demand For Cornice's Storage Element.

Business Editors/High-Tech Writers

LONGMONT, Colo.--(BUSINESS WIRE)--May 19, 2004

Cornice Inc. -- an innovator in compact, high-capacity storage -- has expanded its presence in the Asia/Pacific region by signing on four distributors as local resources for the company's successful Storage Element (SE) technology. AV Concept Limited of Hong Kong, China, Holy Stone Enterprise Co., Ltd. of Taiwan, Kaga Electronics Co. Ltd. of Japan, and Uniquest Corporation of Korea, will be serving as Cornice's distributors within their respective countries.

"To date, Cornice has been very successful in the Asia/Pacific region, with good design penetration into innovative devices from leading consumer electronics companies," said Scott Holt, executive vice president of sales and marketing at Cornice. "Cornice has selected these partners to extend the architecural advantages of Cornice. Each has a strong set of skills that enhance the rapid integration of a reliable low-cost storage solution. By signing these agreements in four key countries, we are underscoring Cornice's commitment to serving and supporting this strategic region for the consumer electronics market."

By carrying out a fundamental re-evaluation of how portable storage devices should be designed and manufactured, Cornice achieved the industry's lowest cost for high-capacity storage for products in the consumer electronics marketplace. By re-examining the mechanics and electronics of storage devices, Cornice was able to create an inexpensive storage solution that is compact, durable, and optimized for portable electronic devices.

Readers can contact Cornice's Asian distributors using the following information:

AV Concept Limited (Hong Kong, China)

Phone: [phone]

Fax: [phone]

Email: [e-mail]

Web: http://www.avconcept.com

Holy Stone Enterprise Co., Ltd. (Taiwan)

Phone: [phone]

Fax: [phone]

Email: [e-mail]

Web: http://www.holystone.com.tw

Kaga Electronics Co. Ltd. (Japan)

Phone: [phone]

Fax: [phone]

Email: [e-mail]

Web: http://www.taxan.co.jp

Uniquest Corporation (Korea)

Phone: [phone]

Fax: [phone]

Email: [e-mail]

Web: http://www.uniquest.com.kr

About AV Concept Limited

AV Concept Limited ("AV") is one of Asia's leading electronics component distributors for Samsung Electronics and Fairchild Semiconductors. AV is also a "One-stop Service Provider" with strong ability and intelligence to source all kinds of application software designs and electronic components to fit in the customers needs. Headquartered in Hong Kong with major sales offices in Shenzhen, Shanghai, Singapore, Malaysia, Philippines, Indonesia and India, AV boasts a comprehensive distribution network and strong sales expertise in China and South East Asia region.

AV is also a wholly owned subsidiary of AV Concept Holdings Limited, a dynamic and fast growing electronics group listed on Hong Kong Stock Exchange. The Group's businesses include the sales and distribution of electronic components; the design and manufacture of MP3 players; and a leading electronic manufacturing services (EMS) provider in China's fast growing Pearl River Delta region. For more information about AV, please visit our website at http://www.avconcept.com/.

About Holy Stone Enterprise Co., Ltd.

Holy Stone, a technical-oriental distributor, has over 23 years experience in the electronic components industry (listed on Taipei Stock Exchange, TSE: 3026). With a strong technical team, Holy Stone provides customers various services and logistics, including: optimal product design-in, turn-key solutions for DSC/DV and MP3 players, roadmap planning, and a one-stop shop for a full range of electronic components.

About Kaga Electronics Co. Ltd.

Kaga Electronics has been providing a variety of parts and techniques for the vast electronic field, since its establishment as an independent trading company.

What has been supporting this is the ability to supply parts by making the most use of its unique global network; to develop techniques so as to respond to customers' great needs; and to developed as a group of both domestic and foreign companies so as to correspond to the speed and change of technical innovation in the electronic industry.

Kaga supplies an optimum solution to customers by refining individual power and by utilizing the synergy effect of all domestic and foreign group companies.

About Uniquest Corporation

Established in 1993, Uniquest is a leading-edge solutions provider in Korea. Focused on creating demands and providing innovative solutions to the market, the current line cards include Altera, IDT, Intel, Silicon Labs, and others.

Uniquest has three divisions for sales addressing the wireless, communications, and digital consumer markets. For more information about Uniquest, please visit our website at http://www.uniquest.co.kr/.

About Cornice

Cornice Inc. is an innovator in small, compact, low-cost, high-capacity storage that enables a new generation of pocket-able consumer electronic devices for the world's leading brand-name manufacturers. The Cornice Storage Element (SE) is durable, integrated, personal storage that brings new levels of affordability, reliability and content capacity to these devices.

Early investors in Cornice include the company's founders, management team, and Texas Instruments. The Company has received venture investments from BA Venture Partners, CIBC Capital Partners, GIC Special Investments, Nokia Venture Partners, and Vantage Point Venture Partners. Privately held, Cornice maintains its headquarters in Longmont, Colorado. Visit Cornice at http://www.corniceco.com/.