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Cleo to Hold Over 100 CD's Worth of Music on Internal Drive

Under the agreement, Remote Solution will license e.Digital's MicroOS(TM)-based Internet music player design for a new multi-codec, SDMI-capable portable jukebox product named Cleo(TM). Remote Solution plans to introduce the Cleo to the consumer market under its own brand name and in addition will make it available for licensing by name-brand OEM customers in the electronics, computer, and audio industries.

``The Cleo rises above the current Internet music marketplace confusion by including support for several compression formats and digital rights management systems. With major record labels promising to provide Internet downloadable content, it is important for us to provide our customers with a user-friendly product that can support it,'' said David Ahn, president of Remote Solution. He continued, ``We are confident that the combination of our consumer product design and production capabilities and e.Digital's technical expertise and market awareness will create a formidable new competitor in the Internet music player arena.''

Fred Falk, president and CEO of e.Digital, added, ``Remote Solution is an ideal partner for us because of their pioneering work in their Personal JukeBox product line incorporating a hard disk into a portable MP3 player. It is an ideal fit with the music player reference designs we have refined in the last year, and with our flexible, MicroOS core technology specifically created for use in portable devices.'' He continued, ``We believe that the Cleo will offer music consumers something they have never seen before: a portable digital music jukebox with a simple user interface; support for multiple music codecs including those being adopted by the major record labels; and the ability to store and play back up to 2000 songs.''

Hong-Bum Shin, president of HanGo Electronics, said, ``Remote Solution/HanGo and e.Digital share an enormous interest in the Internet music industry. We are all committed to generating cutting edge portable designs that will maximize the end user's experience in every way. With all the recent developments in the Internet music industry, and the consumer audience's interest in taking their favorite digital tunes with them, we are pleased with the market prospects for Cleo.''

Atul Anandpura, e.Digital vice president of R & D stated, ``Cleo will incorporate e.Digital's MicroOS(TM)-based multi-codec music player design and will include a 6.4 GB portable hard drive. We will leverage our customizable MicroOS file management system to effectively manage the large-capacity hard disk in Cleo. Our core technology is flexible by design, to allow the incorporation of a hard disk or other storage media in place of Flash memory in portable devices.''

e.Digital's flexible, multi-codec Internet music player design also incorporates a Digital Signal Processor (DSP) from Texas Instruments.

About Remote Solution

Remote Solution, located in Brea, Calif., is the U.S. Marketing and sales organization for HanGo Electronics, Co., Ltd., Korea. For more information on the company, visit www.remotesolution.com.

About HanGo Electronics, Co., Ltd.

HanGo Electronics, Co., Ltd., located in Kimchun, Korea, was founded in January 1993. The company is a leading manufacturer of remote controls, multimedia and other consumer devices, specializing in high-volume OEM manufacturing and production work. HanGo Electronics has leading brand name customers including; Hitachi, NEC, Daewoo, General Instruments, Lexicon, TIVO, and Harman Kardon. HanGo Electronics is also an OEM manufacturer of several newly announced expansion modules for Handspring's(TM) new line of handheld computers.

About e.Digital

e.Digital Corp. 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 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 solve latent Year 2000 compliance issues; pricing pressures; and the uncertainty of market acceptance of new products by OEM's and end-user customers.

Note: e.Digital and MicroOS are trademarks of e.Digital Corp. Handspring is a trademark of Handspring Inc. All other company, product, and service names are the property of their respective owners.

Contact:

     HanGo/Remote Solution
     Lucy Gilmer, 714/674-5190 ext. 104
     or
     e.Digital Corp.
     Robert Putnam or Wendy Ravenel, 858/679-1504
     robert@edig.com
     wendy@edig.com
     or
     The MWW Group (for e.Digital)
     Matt Messinger, 201/964-2377
     mmessing@mww.com