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To: hoffy who wrote (1041)	5/10/1999 12:10:00 AM
From: mark cox	Respond to of 3517

e.Digital, ( EDIG ) looks like the big news that everyone has been waiting for may be out today or this week. Has anyone noticed how much press the online musical downloads is getting? MP3 is going to be replaced with secure copyrighted downloads. This is a multibillion dollar business. A tiny little company by the name e.Digital is right in the middle of it with their partners Lucent Technologies and Texas Instuments. e.Digital has a patented OS, (operating system), for handheld devices that use flashmemory. They have designed and built a small digital music player for Lucent From an article in EET. ***************************** May. 07, 1999 (Electronic Engineering Times - CMP via COMTEX) -- Sunnyvale, Calif. - The nascent market for Internet audio is on a rapidly rising number of technology companies' play lists. In recent weeks, product announcements from Diamond Multimedia, Samsung Electronics, Lucent Technologies and RealNetworks have turned up the volume on an already buzzing market segment.** Not all of the new offerings accommodate MP3 files. Last month, SDMI founding member Lucent Technologies introduced a Texas Instruments DSP-based, non-MP3 Internet-audio portable music player that only plays music that has been compressed using Lucent's Enhanced Perceptual Audio Coder (Epac). The player employs an operating and file-management system, called MicroOS, that was developed by e.Digital* (San Diego), a contract design company that is building the handheld device for Lucent.* Lucent said the device will be ready for delivery to OEMs in time for Christmas. It promised that it will work with TI, also an SDMI founding member, to make sure the offering meets SDMI's first set of fast-track security specs. The e.Digital device will use security technology from third-party vendors, including digital watermarking technology from Cognicity. Epac licenses Lucent said it is hammering out deals with Web sites and record labels to carry Epac-encoded music. It plans to license Epac to other device makers and to sell the e.Digital players to OEMs. DSP support for the e.Digital device is expected to be expanded to devices from Lucent Microelectronics and others. *********************************** This is huge news. eDigital has the chance to become a standard in handheld devices. They have also made a digital voice recorder for Lanier Corp. This is a high tech device mostly for physicians to dictate into and then it uploads into their PC and is converted to text. Voice to text. eDigital is also working with Intel Corp for hand held devices. They are producing prototypes for Intel right now that will be delivered this summer. The Chief Technical Officer is supposed to be on a TV station at 6:30am in San Diego Monday morning. It may be to coincide with a big news release of orders from music labels and music websites. eDigital has more potential than any stock I have ever seen. Earlier I said that Tracey would have to build a wing on to the FEMPS hall of fame just for this stock. I forgot to mention that EDIG holds 5 patents dealing with digital devices that use flash memory. Do you wonder why Lucent and Intel have eDigital designing and building hand held devices for them? Because of their OS. I forgot to mention that eDigital is also in the VoiceTIMES consortium with the companies, IBM, Philips, and Intel to name a few. This is because of eDigital's patents for digital recording devices that utilize flash memory. Mark