SAN DIEGO--(BUSINESS WIRE)--June 15, 1999--

e.Digital Begins Fulfillment of $3 Million Initial Purchase Order for Cquence Mobile(TM) Handheld Digital Voice Recorder and Docking Station

e.Digital Corp. (OTCBB:EDIG) announced today that it has begun shipping Cquence Mobile handheld digital voice recorders and computer docking stations to OEM customer, Lanier Worldwide Inc. This begins the fulfillment of Lanier's initial purchase order worth over $3 million to e.Digital.

Cquence Mobile will be marketed by Lanier's direct sales force and distributor network as part of the Cquence family of document management solutions.

"Cquence Mobile will allow the end user to have all of the benefits of the traditional hard-wired dictation station, with the added freedom to dictate anywhere," said Rod Reed, director of marketing, Lanier. "Traditional digital voice recorders lack the functionality needed by high-volume users. Cquence Mobile will provide the healthcare and legal markets the latest in digital voice technology without sacrificing functionality."

Fred Falk, president and chief executive officer of e.Digital, stated, "Completion of Cquence Mobile is a major milestone for both companies. We are very proud of the finished product, which represents the highest quality, most feature-rich portable dictation device ever built. The product will soon be installed in Lanier's customer base, and Lanier will provide rolling sales forecasts as we near completion of the initial purchase order."

Norbert Daberko, vice president of engineering at e.Digital, said, "Our Micro OS operating system and product development expertise were leveraged in the creation of Cquence Mobile, with special attention to Lanier's end user interface specifications. It allows for capturing demographics, such as user ID, type of work, and patient/case number through the use of a convenient telephone-style keypad. An optional built-in barcode reader is also available to capture these demographics. In addition, Cquence Mobile provides systematic voice prompts, an electroluminescent liquid crystal display (LCD), rechargeable NiMH batteries, high-speed IrDA-compliant infrared data interface, and removable (SanDisk CompactFlash(TM)) memory. The recorder is highly configurable, allowing users to tailor the system's operation and data collection to their specific needs."

Daberko continued, "The docking station serves a number of functions including PC-host interface (via high-speed infrared data transfer) and convenient battery charging base. The docking station marries digital handheld dictation with PCs, Intranets and the Internet."

A photo of the finished product can be seen on Lanier's Web site at (http://www.lanier.com/healthcare/doc...

Falk added, "With the research and development we've done over the last two and a half years, and our involvement in the VoiceTIMES alliance with IBM (NYSE:IBM), Intel (Nasdaq:INTC), and others, we are positioned to play a major part in the evolution of the digital dictation industry."

Falk continued, "Beyond dictation, our goal is to leverage our digital product design expertise and MicroOS into one of the industry standards for use in portable digital music, data, image and eventually, full-motion video devices. Part of the fulfillment of this goal is e.Digital's recently-announced partnership with Lucent Technologies (NYSE:LU) in the development and marketing of a secure Internet music player based on e.Digital's MicroOS and Lucent's EPAC (Enhanced Perceptual Audio Coder) compression technology."

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 and manufacturing services. For more information on the company, visit www.edig.com.

Based in Atlanta, Lanier Worldwide Inc. is a $1.6 billion wholly-owned subsidiary of Harris Corp. With more than 1,600 sales and service locations in nearly 100 countries, Lanier is one of the world's largest providers of document management solutions, services and support. Lanier markets, sells and services a wide array of tailored solutions designed to improve document productivity. From document creation, distribution, replication and retention, Lanier aims to lower the cost of these processes, while making customers more productive. For more information on Lanier visit www.lanier.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