E-data Corporation Form 10SB Filed; SEC Confirms Receipt of Filing, Review Process Underway

Business Wire, May 17, 2002

Business Editors

PORT WASHINGTON, N.Y.--(BUSINESS WIRE)--May 17, 2002

(Stock Symbol: OTC: EDTA) E-data Corporation is the holder of the "Freeny Patent", U.S. Patent No. 4,528,643, "System for Reproducing Information in Material Objects at a Point of Sale Location", covering a specific system and method of distributing content over electronic and wireless networks.

E-data Corporation today reported that the required Securities and Exchange Commission Form 10SB, a necessary first step for the company in obtaining status as a fully reporting issuer of securities on the OTC Bulletin Board, has been filed. An official copy of the form may be obtained by visiting the SEC web site at www.sec.gov and searching the EDGAR database.

Said Bert E. Brodsky, Chairman and C.E.O. of E-data Corporation, "In addition to fulfilling a promise made to the shareholders, the submission of our 10SB allows the company to move forward and concentrate its efforts on furthering operations concerning ongoing lawsuits, new lawsuits, and general marketing of licenses for the Freeny Patent."

From the date of receipt of filing, the Corporate Finance department of the SEC has 60 days to issue comments regarding the filed registration statement. It is standard procedure for the SEC to review and comment on the filed document. Such comment may take various forms including a request for additional information, clarification of certain informational sections and/or questions and comments on the financial statements appended to the Form.

Upon receipt of any comments from the SEC the Corporation will immediately prepare an "amended" Form 10SB filing to include any additional information requested, as is the standard operating procedure. Should the SEC fail to provide E-data with an initial response within a 60 day period from the date of filing, the filed statement will automatically become effective.

About E-data Corporation

E-data owns North American and European patents covering a specific system and method of distributing digital content over electronic and wireless networks. These patents are basic building blocks of an emerging global market for music, books, films and other products digitally distributed through kiosks or other electronic systems or networks. Under its innovative business model, E-data will actively partner with companies in various markets to leverage its Intellectual property rights by practicing as well as licensing its proprietary technology.

Forward Looking Statements

This press release contains forward-looking statements which involve known and unknown risks and uncertainties or other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used herein, the words "may," "could," "estimate," "believes," "anticipates," "thinks," "intends," "will be," "expects" and similar expressions identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Prospective investors are cautioned that forward-looking statements are not guarantees of future performance. Actual events or results may differ from the Company's expectations, which are subject to certain risks and uncertainties, including but not limited to protracted judicial proceedings, growth trends in e-commerce and the ability of the Company to finance its licensing and marketing activities.