e.Digital also announced today that it has received new IFE orders totaling over $1.2 million from Mezzo Movies and from a major European airline. The Company expects to ship the orders during this second fiscal quarter.

"Our eVU™ mobile entertainment system IFE business is building momentum," said Will Blakeley, e.Digital's president and chief technical officer. "We began receiving quantity eVU orders in the second half of fiscal 2007 subsequent to the formal debut of eVU at the WAEA show last September. Since that time the activity and interest in our eVU portable entertainment systems and services has steadily increased. Combining first fiscal quarter eVU sales with scheduled current quarter sales (fiscal Q2), we expect to report over $3 million in revenues for the first half of fiscal 2008."

Addressing e.Digital's efforts with Duane Morris LLC to monetize its flash memory-related patent portfolio, Blakeley commented, "Our management team, with the assistance of intellectual property (IP) veteran, Pat Nunally, has been working diligently with patent enforcement counsel, Duane Morris, to exploit our portfolio. We are very encouraged by the technical and legal development of our portfolio and expect patent enforcement actions to commence this quarter."

"We believe our efforts to monetize our flash-memory related IP and our accelerating eVU IFE business position e.Digital for a successful fiscal 2008," concluded Blakeley. "We look forward to announcing the date of the shareholder's meeting this quarter and expect additional eVU orders throughout this fiscal year to add to our over $3 million in current eVU business and backlog."

About e.Digital Corporation: e.Digital is a provider of secure portable Video on Demand products including its proprietary eVU™ portable entertainment system. e.Digital also owns and is pursuing the monetization of its portfolio of flash memory-related patents. For more information about e.Digital and eVU, please visit: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. 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.

                     e.Digital Corporation and subsidiary                   Condensed Consolidated Balance Sheets                  (000s omitted except per share amounts)                                               March 31, 2007  March 31, 2006                                                    $               $                                             --------------  -------------- ASSETS Current Cash and cash equivalents                              695           1,059 Accounts receivable                                     37               2 Inventory                                              309               - Deposits and prepaid expenses                           51              32                                             --------------  -------------- Total current assets                                 1,092           1,093 Property and equipment, net                             36              63 Prepaid transaction costs                              629               -                                             --------------  --------------     Total assets                                     1,757           1,156                                             ==============  ============== LIABILITIES AND STOCKHOLDERS' DEFICIT Current Accounts payable                                       687             261 Accruals and other                                     281             741 Customer deposits                                      119             793 Dividends                                              464             402 Convertible term note - current portion                139               - Secured promissory note                                750               - Unsecured notes, short-term                              -           1,016 Convertible subordinated notes                           -             397                                             --------------  -------------- Total current liabilities                            2,440           3,610                                             --------------  -------------- Long-term liabilities                                  754               - Stockholders' deficit                               (1,437)         (2,454)                                             --------------  -------------- Total liabilities and stockholders' deficit          1,757           1,156                                             ==============  ==============                       e.Digital Corporation and subsidiary               Condensed Consolidated Statements of Operations                  (000s omitted except per share amounts)                                                For the year ended March 31,                                                  2007            2006                                                   $               $                                             --------------  -------------- Total revenue                                        1,815           3,250 Cost of revenue                                        790           3,136                                             --------------  --------------   Gross profit                                       1,025             114 Operating expenses:   Selling and administrative                         1,619           1,318   Research and related expenditures                  1,474           1,338                                             --------------  -------------- Total operating expenses                             3,093           2,656                                             --------------  -------------- Operating loss                                      (2,068)         (2,542) Other expense                                        1,061             565                                             --------------  -------------- Loss and comprehensive loss                         (3,129)         (3,107) Imputed and accrued dividends on preferred  stock                                                 123           2,161                                             --------------  -------------- Loss attributable to common stockholders            (3,252)         (5,268)                                             ==============  ============== Loss per common share - basic and diluted   $        (0.01) $        (0.03) Weighted average common shares outstanding     217,130,347     177,472,037