(SAN DIEGO, CA, – December 18, 2007) – e.Digital Corporation (OTC: EDIG), a leading innovator of dedicated portable inflight entertainment (IFE) systems and patented flash memory-related technology, announced today that it has received an opening order from Italian airline, Neos Air. To date, twelve airlines have purchased the Company’s proprietary eVU™ portable entertainment system. Since 2003, over 30 airlines have made dedicated portable systems powered by e.Digital technology their inflight entertainment choice making e.Digital one of the leading suppliers of dedicated portable IFE systems and services.

Neos Air is based in Milan and operates leisure flights to southern Europe, Russia, Africa, the Middle East, the Far East, the Caribbean, Mexico and Brazil. e.Digital has delivered the opening order; Neos Air is scheduled to launch eVU service to their passengers today.

e.Digital’s enhanced studio-approved eVU™ portable entertainment system features a multi-language customizable passenger-friendly interface and an industry-leading 20+ hours of continuous video playback from a single battery charge. eVU is available in either 7" or 8" high resolution LCD screen with 40 GB to 200 GB of rugged and reliable storage for many hours of movies, television shows, music, specialty programming and games. eVU is the smallest and lightest dedicated long play portable IFE product available today and integrates the latest in battery safety features through its removable “Smart” rechargeable high capacity battery pack.

“We’re happy to welcome Neos Air to the growing family of eVU customers,” commented Will Blakeley, president of e.Digital. “Our industry leading 20+ hours of continuous video playback from a single battery and other system enhancements continue to attract airlines interested in providing their passengers the best portable entertainment experience available in the air today.”

About e.Digital Corporation: e.Digital is a leading innovator of dedicated portable inflight entertainment systems. More than 30 airlines have made dedicated portable systems powered by e.Digital technology their inflight entertainment choice. e.Digital also owns and is pursuing the monetization of its Flash-R™ portfolio of flash memory-related patents. e.Digital was the first company to employ and patent important aspects of the use of removable flash memory in portable recording devices. For more information about e.Digital and eVU, please visit: www.edigital.com.