CompUSA Stores Nationwide to Carry e.Digital's Odyssey MP3 Players; Easy-to-Use Odyssey MP3 Players for PC and Mac Boast Voice Recording, Up to 30-Hour Playback Time

Business Wire,  August 1, 2002  

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Business Editors & High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--Aug. 1, 2002

e.Digital Corp. (OTC: EDIG) today announced that CompUSA, America's Largest Computer Superstore, is the first retailer to carry e.Digital's new Odyssey 100 and Odyssey 200 MP3 players.

The Odyssey 100 and 200 are Mac and PC compatible, easy to use, loaded with features, and economically priced.

"We're delighted to have CompUSA add more of our products to their digital audio selection," said Tom Boksa, vice president of consumer electronics for e.Digital, "They now carry both flash-based and hard disk products from our MP3 product lines. The Odyssey players, which have already shipped to CompUSA and will be available in the next few weeks, join our Treo 15 personal digital jukebox line already available at CompUSA stores nationwide. Our brand-new Odyssey products are versatile and economical, with a simple-to-use Odyssey Manager program for both PCs and Macs. We expect CompUSA customers to be very enthusiastic about the new Odyssey line."

The extraordinary Odyssey 100 MP3 player features up to 30 hours of battery life from a standard AA Alkaline battery and retails for $129. With 64 MB of embedded flash memory, stereo earphones, and an intuitive user interface, this powerful MP3 player is perfect for music enthusiasts who value maximum play time. The Odyssey 100's standard accessories include a wired remote control and a carrying case with belt clip. A built-in SmartMedia card expansion slot lets users add up to 128 MB more of removable flash memory.

The Odyssey 200 features MP3 file playback in addition to high-quality voice recording using the Odyssey 200's standard 128 MB built-in flash memory for over 8 hours of voice recordings. A SmartMedia card expansion slot lets users add up to 128 MB more of removable flash memory. It also has a digital FM tuner with 20 customizable FM station presets. A multipurpose wired remote control, carrying case, and belt clip come standard with the Odyssey 200, which retails for $179.

About CompUSA

CompUSA Inc. www.compusa.com is one of the nation's leading retailers and resellers of personal computers and related products and services. CompUSA Inc. currently operates 220 CompUSA Computer Superstores in 84 major metropolitan markets across the United States that serve retail, corporate, government and education customers and includes technical service departments. Many of the stores include classroom training facilities.

About e.Digital

e.Digital Corp. designs, licenses, brands, manufactures, and sells digital audio products and technologies. The company's trademarked digital audio players include the MXP 100(TM), Treo 15 and Treo 10, Odyssey 100, Odyssey 200, and Odyssey 300. The company also 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, voice and video players/recorders, and automotive infotainment and telematics systems. Other 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(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 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, Treo, MXP 100, and Odyssey are trademarks or registered trademarks of e.Digital Corp. All other company, product, and service names are the property of their respective owners.

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