Note: Direct orders

(SAN
DIEGO, CA -- March 29, 2007) - e.Digital Corporation (OTC: EDIG) a
proven technology innovator of dedicated portable inflight
entertainment (IFE) systems and patented flash memory-related
technology, announced today that it has received over $2.5 million in
new orders and contracts for its proprietary eVU portable entertainment
systems and services. The eVU systems orders are expected to ship
before June 30, 2007 and the direct orders and contracts are subject to
future performance by all parties and to standard warranties and
intellectual property indemnifications including certain remedies,
ranging from modification to product substitution or refund as well as
related contractual requirements.