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e.Digital and Evolution Technologies Unveil MTV DataPlay-Enabled Music Player; See a Live Demo at 2002 Consumer Electronics Show.

Business Editors and High-Tech Writers

CES 2002

LAS VEGAS--(BUSINESS WIRE)--Jan. 8, 2002

e.Digital Corp. (OTCBB:EDIG), Evolution Technologies, MTV: Music Television, and DataPlay(TM) announced the MTV portable DataPlay-enabled music player.

The device is scheduled to be one of the first music players on the market to utilize DataPlay's innovative technology. The music player will be demonstrated at the 2002 International Consumer Electronics Show (CES) in Las Vegas Jan. 8-11, at the Evolution booth No. 13432 in the MP3 Pavilion. Using DataPlay's removable, quarter-sized 500 MB digital media, the MTV music player holds up to eleven hours of compressed digital music, or five complete pre-recorded albums of CD-quality music.

The next-generation portable device, with DataPlay removable storage media, functions as a music player, a recorder, an external storage drive and an optical media burner. Consumers can rip music, download content, store and transport files, and playback user-recorded files and/or pre-recorded content. Major record labels UMG, EMI, and BMG are scheduled to release popular music content on DataPlay(TM) digital media for purchase by consumers.

The device design is much smaller than CD players and many solid-state digital audio players at 75mm X 85mm X 23mm. It supports MP3, AAC, QDX, and Windows Media(TM) formatted music files and is firmware upgradeable so that end users can download and install additional features as they become available. The device also supports DataPlay's ContentKey(TM) technology designed to allow users to activate pre-recorded content on DataPlay digital media via the Internet.

Evolution, DataPlay, and e.Digital collaborated on the development and design of the MTV DataPlay-enabled music player. Partnering with MTV to brand the player is a perfect fit, as MTV has built a strong reputation taking advantage of new and exciting technologies and platforms to bring music to the masses.

Tony Calandra, Director, Interactive Products for MTV, stated, "This new product is in line with our dedication to breaking new ground through music and entertainment. The MTV audience has consistently been early adopters and this device is the perfect combination of music and technology that our audience loves."

"Our strategy has always been to penetrate the market quickly and effectively by building numerous technology, manufacturing and marketing partnerships, such as our relationships with MTV, DataPlay, and e.Digital," said Brad Deifer, president of Evolution Technologies. "DataPlay digital media, with its unique size, capacity and functionality, has the potential to deliver the most universal, portable and cost-effective digital media solution available in the marketplace."

About Evolution Technologies

With MP3 becoming the de facto choice for Web music listeners, Evolution (www.nowevolution.com) is committed to provide digital audio and radio communication products to music fans everywhere. Evolution's MP3 music players are being sold in Asia, Europe, and North America.

About MTV

MTV Networks, a unit of Viacom International Inc. (NYSE: VIA, VIA.B), owns and operates the following television programming services -- MTV: Music Television, MTV2, VH1, Nickelodeon/Nick at Nite, TV LAND, TNN, CMT and The Digital Suite From MTV Networks, a package of nine US digital services, all of which are trademarks of MTV Networks. MTV Networks also has licensing agreements, joint ventures, and syndication deals whereby all of its programming services can be seen worldwide. In addition, MTV Networks operates The MTVi Group and Nickelodeon Online, a portfolio of leading Internet properties built to address every interest of today's music fan and Internet-savvy kid.

About DataPlay Inc.

DataPlay Inc. was incorporated in November 1998 to develop a Web-enabled digital content recording and distribution media for portable Internet appliances and hand-held consumer entertainment devices. With headquarters in Boulder, Colo., the company employs more than 175 people in the United States, Singapore and Japan. Visit DataPlay on the Internet at www.dataplay.com.

About e.Digital

e.Digital 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, visit www.edig.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 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.

Editors Note: e.Digital and MicroOS are trademarks of e.Digital Corp. DataPlay is a trademark of DataPlay Corp. MTV is a trademark of Music Television. All other company, product, and service names are the property of their respective owners.
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Copyright 2002, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Jan 8, 2002
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