e.Digital Corporation (OTCBB: EDIG), a proven technology innovator of dedicated portable inflight entertainment (IFE) systems and patented technology in the utilization of flash memory in portable devices, today reported that revenues for its fiscal year 2007 ended March 31, 2007 totaled $1.8 million compared to revenues of $3.3 million for fiscal 2006. The decrease was due primarily to transitioning from supplying an older product to one customer accounting for substantially all of fiscal 2006 revenue to distributing the new proprietary eVU(TM) portable entertainment system to multiple customers commencing in the second half of fiscal 2007. Product sales for the second half of the year were $1.79 million compared to $34,000 for the first six months prior to eVU's launch.