e.DIGITAL CORPORATION EXPANDS SERVICES TO PROVIDE DSP SOLUTIONS
 FOR INTERNET COMPATIBLE PORTABLE DEVICES

(SAN DIEGO, CA – March 22, 1999) – e.Digital Corporation (OTC: EDIG) reported today that it is expanding its engineering services to include the implementation of DSP solutions. The Company announced that it has hired Kevin Bostenero, a senior digital signal processing (DSP) engineer, to head its expanding services for OEM customers.

Fred Falk, President and CEO of e.Digital, stated, "This addition to our engineering team expands the services we can offer our customers which include Lucent Technologies (NYSE: LU), Intel Corporation (NASDAQ: INTC) and Lanier Worldwide, Inc. We also expect to announce new opportunities as a result of our expanded capabilities. Kevin will be the architect of custom DSP solutions specialized to the needs of our customers whose designs are calling for more sophisticated portable devices to process voice, text, images and music."

Mr. Falk continued, "Whereas large electronic design firms like Cadence (NYSE: CDN) offer a broad range of software, consulting and design services, we focus on software, design and engineering services for portable digital devices. The appropriate DSP technology is a critical component of these devices. We are now able to provide DSP software and solutions perfectly complementing our patented operating system software and digital engineering services. Designing and incorporating custom DSP solutions expands e.Digital's business and provides us an important competitive edge."

Mr. Bostenero's past experience includes positions at Stellcom Technologies, Megatek Corporation, and Cubic Corporation, with project-based experience at Scientific Atlanta Signal Processing Systems, Loral Telemetry and Instrumentation, NCR, Optigraphics and Unisys. He holds a Bachelor of Science degree in Computer Science from San Diego State University.

Mr. Bostenero said, "I am very excited about the opportunities at e.Digital. I expect to make significant contributions to the breadth of their services by developing application-specific DSP solutions for their customers."