To: Mr Metals who wrote (18465 ) 7/28/1999 10:19:00 AM From: 2MAR$ Respond to of 25711
(BSNS WIRE) e.Digital Corp. and Lydstrom Inc. Announce Design Integratio e.Digital Corp. and Lydstrom Inc. Announce Design Integration Agreement Business Editors SAN DIEGO--(BUSINESS WIRE)--July 28, 1999-- Portable, Secure Internet Music Player and Home Stereo System Share High Sound Quality, Large Storage Capacity e.Digital Corp. (OTCBB:EDIG) announced today that its secure, portable Internet music player design will include compatibility with Lydstrom Inc.'s SongBank MZ3-5000. The SongBank is a 5,000 song capacity, multi-zone home entertainment system capable of connecting to the Internet. Users will be able to exchange songs between the two devices with no loss of sound quality. Fred Falk, president and chief executive officer of e.Digital, said, "The interface between these two products gives users the option of listening to their favorite music on the run or in their homes. Users will have vast amounts of storage in the Lydstrom home system, from which they can easily select their favorite Internet music files or CD songs to download to our portable player." Falk continued, "Our portable player will support a wide variety of Internet music formats, and it will address the music industry's concerns about music piracy by complying with the SDMI's guidelines to protect music files from being illegally copied and distributed." Rahul Shah, president of Lydstrom, stated, "SongBank uses Lucent's ePAC(TM) music compression technology as the native format, and will be able to exchange files through the USB connector. ePAC music compression provides the best possible sound quality in any playback situation." He added, "The home system will also support other secure Internet music formats to ensure that users have access to the widest selection of music for their library." e.Digital and Lucent Technologies (NYSE:LU) are co-marketing a portable, secure Internet music player design that features SDMI compliance and supports secure Internet music formats. This latest collaboration with Lydstrom is another important step in taking the e.Digital/Lucent portable design to a wider audience interested in mainstream Internet music choices and CD-transparent sound quality. Lydstrom's SongBank MZ3-5000, which will be available by December 1999, is targeted at the growing market for networked home entertainment systems. The device will allow families to effectively manage and catalog various types of media, particularly current CD collections and audio downloaded from the Internet. The SongBank has a memory capacity of approximately 5,000 high-fidelity songs. Its search, retrieve, and catalog features are accessible through a touch-screen remote control interface. Both the e.Digital portable Internet music player and the Lydstrom SongBank system use the Lucent Enhanced Perceptual Audio Coder(TM) (ePAC(TM)), licensed by Lucent. ePAC is a new version of the Lucent Perceptual Audio Coder(TM) (PAC(TM)) developed by Bell Labs, the research and development arm of Lucent Technologies. ePAC is an audio compression algorithm with the highest-quality audio at the lowest bit rates. At 128 kilobits per second, ePAC offers CD-transparent stereo sound. e.Digital Corp. offers an engineering partnership for the world's leading electronics companies to link portable digital devices to PCs and the Internet. Engineering services range from the licensing of e.Digital's multi-patented MicroOS(TM) file management system to custom software and hardware development, design and manufacturing services. For more information on the company, visit www.edig.com. Lydstrom Inc, with offices in Boston and Arlington, Va., was formed to address the growing need for media management solutions in the home. From our revolutionary new CD player to advanced new media routers, Lydstrom strives to manage this information overload and become a beacon in the sea of media. For more information on Lydstrom, visit our Web site at lydstrom.com . For investment opportunities, please e-mail investors@lydstrom.com. Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements relating to future performance, technology and product development that may impact on 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 risk factors such as: future products and results; technological shifts; potential technical difficulties that could delay new products; competition; general economic conditions in the markets in which the company operates; the ability of the company, its customers, and suppliers to become Year 2000 compliant; pricing pressures; and the uncertainty of market acceptance of new products by OEM's and end-user customers. Note to Editors: MicroOS is a trademark of e.Digital Corp. Lydstrom is a trademark of Lydstrom Inc. ePAC is a trademark of Lucent Technologies. All other product or service names are the property of their respective owners. --30--ts/sd* CONTACT: e.Digital Corp. Robert Putnam and Wendy Ravenel, 619/679-1504 robert@edig.com wendy@edig.com or Lydstrom Inc. 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