FOR IMMEDIATE RELEASE                

e.DIGITAL ANNOUNCES FISCAL Q3 2008 RESULTS

Revenues for First Nine Months of Fiscal 2008 Up 272%

Over Same Period in Fiscal 2007

(SAN DIEGO, CA, – February 14, 2008) – e.Digital Corporation (OTC: EDIG), a leading innovator of dedicated portable inflight entertainment (IFE) systems and patented flash memory-related technology, today reported financial results for its third quarter of fiscal 2008 and nine months ended December 31, 2007.

For the third quarter, e.Digital reported revenues of $1.25 million compared to $1.3 million for the same period a year ago. The year ago quarter revenues included $714,000 from the delivery of a delayed shipment. The Company reported revenues of $4.98 million for the first nine months of fiscal 2008 compared to $1.34 million for the same nine-month period the prior year, a 272% increase. Revenues for the first nine months of fiscal 2008 included new and follow-on shipments of the Company’s proprietary eVU™ mobile entertainment system to multiple IFE customers including major European and Asian airlines.

Gross profit for the third quarter of fiscal 2008 was $396,000 or 32% of revenues. Gross profit for the first nine months of fiscal 2008 was $1.24 million or 25% of revenues. Operating costs in fiscal Q3 2008 were $727,000, compared to $714,000 in fiscal Q3 2007. For the nine months ended December 31, 2007, operating costs were $2.17 million compared to $2.28 million for the first nine months of fiscal 2007.

Net loss for the fiscal third quarter was $397,000 compared to a net loss of $156,000 for the third quarter of the year prior due to the Company’s revenue recognition of $714,000 from a delayed shipment. For the first nine months of fiscal 2008, the Company’s net loss was $1.15 million, a substantial decrease from $2.89 million for the same nine months in fiscal 2007. The improved financial performance is the result of current year eVU product and service revenues resulting in positive product margins. Net loss available to common stockholders for the third fiscal quarter and for the first nine months of fiscal 2008 were $(0.00) per basic and diluted share respectively, compared to $(0.00) and $(0.01) per basic and diluted share for the same periods last year respectively.

“To date, thirteen airlines have made our dedicated portable eVU IFE system their inflight entertainment choice through new and follow-on orders,” commented Will Blakeley, president of e.Digital.  “Our proprietary digital video/audio device (DVAP) technology provides significant advantages over consumer-based and PC-based devices including, 20+ hours of battery life, superior digital video and audio quality, and the ability to easily customize and update content.”

“In just a few months, we have made significant progress on porting our core technology to a lightweight, flexible embedded solution for individualized on-demand IFE entertainment,” continued Blakeley.  “We believe that joint efforts with major airline and airframe companies will yield an embedded eVU system that will offer improved reliability, substantial product and weight/fuel cost savings, and other benefits that would facilitate fleet-wide orders.”

“Due to significant new and follow-on business opportunities and the associated travel involved, we are moving our shareholders meeting to next quarter,” added Blakeley. “Also, our intellectual property team is working to finalize the detailed legal and technical documentation necessary to support additional Flash-R™ patent portfolio enforcement actions against a group of companies who have over $20 billion in annual U.S. revenues derived from what we believe are infringing products.”

Concluded Blakeley, “We remain on track for reporting record revenues for our fiscal year ending March 31, 2008 and, through new and ongoing business developments, we’re positioning e.Digital for a successful fiscal 2009.”