FOR IMMEDIATE RELEASE                                                                                                        

e.DIGITAL SECOND QUARTER 2008 REVENUES SURPASS THOSE OF PRIOR FISCAL YEAR

 Company Expects to Report Over $2 Million in Revenues in Fiscal Q2

(SAN DIEGO, CA, – October 2, 2007) – e.Digital Corporation (OTC: EDIG), a leading innovator of portable inflight entertainment (IFE) systems and patented flash memory-related technology, announced today that it expects to report over $2 million in revenues for the second quarter ended September 30, 2007, surpassing total fiscal year 2007 revenues of $1.8 million. Revenues for the first six months of fiscal 2008 are expected to be over $3.3 million.  

e.Digital also reported today that it has commenced enforcement actions of its Flash-R™ patent portfolio. e.Digital has a 19+ year record of innovation and significant investment in a robust intellectual property asset base which includes being the first company to employ and patent important aspects of the use of removable flash memory in portable recording devices. 

“We have made substantial business progress in the first half of fiscal 2008 through business with Lufthansa, Malaysia Airlines, Air France, Alitalia, Mezzo and their airline customers,” said Will Blakeley, president of e.Digital.  “We introduced our proprietary eVU Extended Range™ (eVU-ER™), with an industry leading 20+ hours of continuous video playback from a single battery, at the recently concluded 28th Annual WAEA Exhibit and Conference. Our IFE products and accessories were well received by the industry and we expect new business and additional orders as a direct result of the conference. 

“Over the next six months of fiscal 2008, we look forward to announcing further IFE business developments, and adding to the more than 30 airlines that have made dedicated portable systems powered by e.Digital technology their inflight entertainment choice,” concluded Blakeley. “We also look forward to holding a general meeting of shareholders and providing progress reports on the monetization of our Flash-R patent portfolio.”