Rio Picks Cornice's Storage Technology for Hours of Music in New ``Rio Nitrus'' and ``Rio Eigen'' Digital Audio Players

Business Wire, June 2, 2003

Business Editors/High-Tech Writers

LONGMONT, Colo.--(BUSINESS WIRE)--June 2, 2003

Cornice Technology Helps Digital Music Players Achieve Compact Size

And Higher Storage Capacity For Competitive Price

Cornice Inc., an innovator in compact, high-capacity storage, today announced that two new Rio(R) portable digital audio players, the Rio Nitrus Urban and the Rio Eigen Executive, will feature the 1.5-gigabyte Cornice Storage Element (SE), enabling them to store up to 600 songs within a competitively priced ultra-compact MP3 player.

Rio, a Digital Networks North America company, expects to ship the Rio Nitrus Urban to retailers in August 2003 with a suggested retail price of $299.99 and the Rio Eigen Executive to retailers in September 2003 with a suggested retail price of $329.99.

Both Rio models will be ultra-compact and offer users the ability to carry up to 40 hours of music on a slim player that weighs less than two ounces. The players will support MP3 and WMA formats and be compatible with pressplay and Windows Media Audio 9. The players will use USB 2.0 for fast music transfers, come with Rio Music Manager 2.0 for easy digital music organization, and include a 15-hour rechargeable battery.

Selecting Cornice Gives Rio Customers Affordable, Portable Digital Music

By supplying an ideal balance of compact size, durability, high storage capacity, and low cost, the Cornice SE has enabled Rio to develop and deliver the Rio Nitrus Urban and Rio Eigen Executive products -- two uniquely compelling portable digital music players that will be appreciated by consumers who want to bring their music collections with them. The storage capacity and the overall cost point that the Cornice SE delivers outclasses conventional portable storage solutions available in today's highly competitive consumer electronics market.

By carrying out a fundamental evaluation of how portable storage devices should be designed and manufactured, Cornice achieved the industry's lowest cost for high-capacity portable storage. Combined with a re-examination of the mechanics and electronics of storage devices, Cornice was able to create an inexpensive storage solution that was compact, durable and optimized for portable electronics.

"Incorporating Cornice's innovative Storage Element technology allowed us to create tiny players with huge storage capabilities," said Kevin Brangan, vice president at Rio. "As the innovator of the MP3 category, Rio has long been at the forefront of innovation and we believe that Cornice offers the best storage option for reasonably priced portable hard drive players. We are excited to be one of the first Cornice-based products to market and to participate in the company's worldwide launch."

About Rio

Rio, a Digital Networks North America company, pioneered portable digital audio technology in 1998 with the launch of the Rio 300. Since then, Rio has become the world's number one brand of portable MP3 players by developing a host of award-winning portables that let music lovers take their music with them wherever they go. For more information regarding Rio or to purchase a Rio digital audio player, please visit www.rioaudio.com.

About Cornice

Cornice Inc. is an innovator in small, compact, low-cost, high-capacity storage that enables a new generation of pocket-able consumer electronic devices for the world's leading brand-name manufacturers. The Cornice Storage Element (SE) is durable, integrated, personal storage that brings new levels of affordability and content capacity to these devices.

Early investors in Cornice include the company's founders, management team, and Texas Instruments. In August 2002, the Company received its first venture investment from CIBC Capital Partners, Nokia Venture Partners, and VantagePoint Venture Partners. Privately held, Cornice maintains headquarters in Longmont, Colorado. Visit Cornice at http://www.corniceco.com/.

Note to Editors: Rio(R) is a registered trademark of Digital Networks North America, Inc.