Cornice Announces New Digital Music Player Design Wins with Petters Group/Soniqcast, Digitalway, and Nextway.

Business Editors/High-Tech Writers

LONGMONT, Colo.--(BUSINESS WIRE)--Feb. 17, 2004

New Wins Expand Use of Storage Element in

Digital Music Hardware Markets Worldwide

Cornice Inc. -- an innovator in compact, high-capacity storage -- has announced new design wins from manufacturers of portable digital music players, including Petters Group/Soniqcast, Digitalway, and Nextway.

These Storage-Element-based digital music players introduced in January 2004 are the Petters Group/Soniqcast WiFi-enabled Element(TM) Aireo(TM), Digitalway's MPIO HD200, and Nextway's NHD-150D. The Element Aireo was a Best Of CES Finalist at the 2004 International Consumer Electronics Show (CES). The sleek product designs by these manufacturers leverage the ideal balance of compact design, gigabyte-class storage capacity, and battery-friendliness that has made Cornice's Storage Element a rapid success in the consumer electronics industry.

"Looking back at this most recent CES, it was obvious that Cornice is compounding and capitalizing upon its 2003 success in the first months of 2004," said Kevin Magenis, president and CEO of Cornice Inc. "The balance of the year will show continued penetration of the Cornice Storage Element into additional consumer electronic designs, not only in the area of digital music players, but other exciting product categories as well."

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 electronics. Available in 1.5- and 2.0-gigabyte capacities, the Cornice Storage Element remains a key component in some of the most innovative consumer electronic devices introduced in the past year. In addition to considerable interest from device manufacturers, leading consumer electronics infrastructure providers like Texas Instruments, PortalPlayer, and SigmaTel announced their continued intent to optimize their offerings for use with the Storage Element, providing consumer electronics manufacturers an easy way to incorporate Cornice's technology in future products.

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 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 VantagePoint Venture Partners. Privately held, Cornice maintains its headquarters in Longmont, Colorado. Visit Cornice at http://www.corniceco.com/.