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New software features universal support for music formats and removable media

This means that files stored in the popular mp3 format can play alongside files stored in other formats such as Microsoft's Windows Media or Dolby's AAC, eliminating a key drawback in current portable music player designs. ``We believe strongly that having additional music formats beyond mp3 to choose from is a key advantage for consumers,'' said Mark Phillips, Chief Technology Officer at iObjects. ``Our universal player approach allows you to listen to mp3 files while also utilizing the unique features of other formats such as better compression and enhanced audio. Plus, Dadio's support of both free and copyrighted content vastly expands the library of digital music currently available.''

Storing Music Gets Easier

Dadio's innovative design makes it easier to store more music, flexibly and cost-effectively, by providing universal support for onboard flash memory and removable media. Dadio players will be the first to support a broad range of removable media storage types, including SanDisk's CompactFlash(TM), SmartMedia, Multimedia Cards(TM). IBM's Microdrive, and iOmega Clik!(TM) disks. ``The cost of storage and expansion memory is the single highest component in most player designs and is therefore one of the most critical decisions customers must make today,'' said Kelly Wood, VP of Business Development at iObjects. ``Since storage options vary considerably in cost per megabyte, power consumption, and overall size, it's important to allow manufacturers flexibility in their design in order to meet the differing needs of customers.''

User-Friendly Features

In addition to its universal support of other codecs, Dadio comes with its own optimized mp3 codec. Based on the original ISO standard from the creators of mp3 (Fraunhofer Institute), iObjects' engineering team has developed an industry standard mp3 codec that offers enhanced fidelity and performance over current players. Dadio adds to its user-friendly design by incorporating features such as jBox, a music Jukebox for song playback and play-list management, and dEQ, a high quality digital equalization control system that enhances audio quality. Dadio's jBox software works directly with leading PC-based Jukebox systems and allows drag and drop transfer of music files and play-lists from PCs to digital audio players. Dadio also includes all the necessary software drivers for connecting digital audio players to PCs and other Internet music devices through a USB port. No additional downloading of software from CDs is necessary to get players equipped with Dadio ready to load music.

Making a Digital Appliance

Advances in chip design and intelligence enable Dadio's unique design. New ``system-on-chip'' or SOC based product designs are revolutionizing the capabilities of digital appliances across a wide spectrum of products including personal digital assistants, game players, cell phones, and electronic books. SOCs allow hardware and software to be integrated into a single system, greatly simplifying the operation and improving the capabilities of these new digital devices. Because audio is one of the most demanding and computationally complex things to do on embedded devices, more powerful SOC designs can greatly improve the performance and capabilities of today's mp3 and digital audio players.

Creating a Digital Audio Platform

In introducing Dadio, iObjects has partnered with Cirrus Logic, Corp. (Nasdaq:CRUS - news) to develop an integrated software and hardware platform that greatly expands the capabilities of today's first generation mp3 and digital audio players. Dadio's design takes full advantage of the power and programmability of Cirrus Logic's Maverick(TM) Internet audio system-on-chips. The Maverick(TM) is an all-new SOC chip set specifically designed for digital audio devices. ``Dadio is one of the first products to fully exploit the capabilities of the Maverick(TM) for digital audio,'' said Matthew Perry, Vice President and General Manager of the Embedded Processor Division at Cirrus Logic. Their new software will enable portable music player manufacturers to offer a truly unique product that will quickly gain a leadership position in this growing market.``

I-Jam Multimedia First to Offer Dadio

I-Jam Multimedia LLC has agreed to be the first to offer Dadio in its line of portable digital audio players. I-Jam's forthcoming Win-Jam player, which is powered by Dadio and runs on the Cirrus Maverick chip, is scheduled for release this July with a suggested retail price of $129.99. ``Dadio gives us the flexibility to offer an optimized player for specific music formats. Dadio will be featured in our new Win-Jam player, which will be the first to support Microsoft's new Windows Media Player 7,''said Norm Goldberg, Sr. VP of Marketing of I-Jam Multimedia LLC. ``We also plan to showcase the extended capabilities of Dadio in other new devices.''

How Dadio Works

Dadio is built around a unique software kernel that supports a series of layers and components. The Digital Streaming Services (DSS) layer manages media download and playback. The Hardware Abstraction Layer (HAL) manages interaction with internal memory, storage, LCD, and data ports. The Universal Media Services (UMS) layer manages codecs and digital rights management schemes. To make these modules run together as a complete system, Dadio's kernel provides sophisticated file and memory management functionality and supports multi-threaded operations. Advanced memory buffering allows continuous, smooth operation with external media. This design approach is what makes Dadio unique in providing universal support of music formats and storage solutions. It also enables an entire class of new ``concurrent'' features such as downloading music or managing play lists while listening to music. Moreover, it prevents common problems such as latency or pausing, system crashing, and greatly improves general usability.

About Cirrus Logic

Cirrus Logic is a premier supplier of high-performance analog and DSP chip solutions for Internet entertainment electronics. Building on its global market share leadership in audio integrated circuits and its rich mixed-signal patent portfolio, the company targets high-volume audio, storage and communications applications. Cirrus Logic sells its products under the Crystal®, Maverick(tm) and 3Ci(tm) brands as well as its own name. Founded in 1984 in Silicon Valley, Cirrus Logic operates from headquarters in Austin and major sites located in Fremont, Calif., and Broomfield, Colo., as well as offices in Europe, Japan and Asia. More information about Cirrus Logic is available at www.cirrus.com.

About I-Jam Multimedia

I-Jam Multimedia LLC, headquartered in Schaumburg, Ill., was formed in 1999 to develop and market micro-sized, multimedia products in the digital audio and video categories. The company is leveraging its advanced, in-house expertise in microcircuit design and development with its consumer marketing experience to create innovative solutions for the entertainment and technology industries. For more information, go to the company's Web site at http://www.ijamworld.com./

About Interactive Objects, Inc.

Interactive Objects' Digital Appliance Group is a leading developer of audio solutions for portable digital appliances and the creator of Dadio(TM), the universal software for mp3 and digital audio players. iObjects provides custom software engineering, industrial design and manufacturing services, and offers licenses of its proprietary Dadio(TM) digital audio software to leading consumer electronics, digital media, and computer software companies. iObjects' Business Objects Group provides web application and development services to leading portal and eCommerce web sites.

Interactive Objects is headquartered at 12600 SE 38th, Suite 150, Bellevue, WA 98006,USA. Interactive Objects is listed on the OTC.BB under the symbol ``OBJX'' and on the ``Third Segment'' of the Frankfurt Stock Exchange under the symbol ``IOX'' and German securities code WKN: 913011. The Company can be reached on the web at http://www.iobjects.com/.

The Cirrus and Ijam websites are not under the Company's control and the Company is not responsible for the contents of these sites, or any link contained in one of these sites, or any changes or updates to such sites. The Company is not responsible for webcasting or any other form of transmission received from one of these sites. These links are provided as a convenience and the inclusion does not imply endorsement of the site. When you access one of these sites, you are leaving our website.

Certain information included in this communication contains statements that are forward-looking, such as statements relating to the future anticipated direction of the high technology industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth and potential contracts. These forward statements are subject to a number of known and unknown risks and uncertainties that could cause actual operations or results to differ materially from those anticipated. These risks include, among others, risks associated with failure of our products to achieve market acceptance, unproven sales of the Company's products, risks associated with the software development process and risks related to the transition to a new management team. Certain of these risks and other risks are described under the heading ``Risk Factors'' and elsewhere in the Company's Registration Statement on Form SB-2 and Form 10-KSB filed with the Securities and Exchange Commission (SEC). The 10K and the registration statement are available from the SEC's Web site at http://www.sec.gov/

Contact:

     Interactive Objects, Inc.
     Robyn Byrd, 425/653-5505