e.digital CORPORATION AND IP VETERAN PAT NUNALLY TEAM TO PURSUE MONETIZING COMPANY’S FLASH MEMORY-RELATED PATENT PORTFOLIO

(SAN DIEGO, CA, June 27, 2006) – e.Digital Corporation (OTC: EDIG), a leading innovator of proprietary, secure digital video technology and products, and patented technology in the utilization of flash memory in portable devices, announced today that it has contracted with wireless and intellectual property (IP) veteran, Pat Nunally, to lead e.Digital’s efforts in identifying products and companies that may be utilizing the Company’s flash memory-related IP and preparing e.Digital’s patent portfolio for monetization.

Nunally has more than 20 years of experience in wireless and IP development. Nunally has directed the development of several companies’ IP efforts including Patriot Scientific. Nunally co-founded and was executive vice president of Wave Interactive Network (now Wave Systems). He also served as president and chief executive officer of Gruppe Telekom (now owned by Philips). Nunally previously held senior positions with Sensormatic, Intellisys Automation, E-Metrics, General Dynamics and Interstate Electronics.

“Pat has already begun identifying products and companies that we believe are using our IP,” said Will Blakeley, president and chief technical officer of e.Digital. “Over the next few months, management will be working closely with him and other outside parties to process our patent portfolio and derive a valuation of our IP in products that we believe are utilizing our flash memory-related patents. We are also preparing the documentation, materials, and agreements necessary to initiate discussions with potential licensees of our patent portfolio.”

About e.Digital Corporation:. e.Digital is a provider of secure portable Video on Demand products including its eVU™ mobile entertainment system. e.Digital also licenses its MicroOS™, Content Mark-Up Language (CML) application, LDP software, patent-pending Hardware Security technologies, Digital Rights Management (DRM) solutions, Content Download applications, Encryption and Content Protection solutions, and Video Display software applications. Additionally, e.Digital partners with leading, innovative companies, designing and providing manufacturing services for products employing the Company’s proprietary digital technology platforms. e.Digital is also pursuing the monetization of its flash memory-related patent portfolio. For more information about e.Digital and its technology platforms, please visit the company website at www.edigital.com.

Safe Harbor statement under the Private Securities Litigation Reform of 1995: All statements made in this document, other than statements of historical fact, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act. You should not place undue reliance on these statements. We base these statements on particular assumptions that we have made in light of our industry experience, the stage of product and market development, expected future developments and other factors that we believe are appropriate under the circumstances. These forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the businesses of the Company and the industries and markets in which the company operates. These statements are not guarantees of future performance and involve risks, uncertainties that could cause actual results to differ materially from those suggested in the forward-looking statements, including but not limited to the Company’s ability to finance its operations, favorably resolve the complaint filed by digEcor, Inc. against the Company and certain of its officers and employees, sell its products, implement a turnkey financial, product, and maintenance solution, manufacture and ship orders in a timely manner, secure additional business, and other risks identified and discussed in our filings with the Securities and Exchange Commission (“SEC”). Actual outcomes and results may differ materially from what is expressed or implied by the forward-looking statements. More information about potential factors that could affect the Company can be found in its most recent Form 10-K, Form 10-Q and other reports and statements filed with the Securities and Exchange Commission (“SEC”). e.Digital Corporation disclaims any intent or obligation to update these or any forward-looking statements, except as otherwise specifically stated by it.

Note: eVU and MicroOS are trademarks of e.Digital Corporation. All other company, product, and service names are the property of their respective owners.

CONTACT:

e.Digital Corporation: Robert Putnam, (858) 304-3016 ext. 205, rputnam@edigital.com