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e.DIGITAL RECEIVES INITIAL eVU™ PORTABLE IFE SYSTEMS AND SERVICES ORDER FROM LUFTHANSA

Company Enters Into Supply and Content Integration Agreements with One of the World’s Largest Airlines

(SAN DIEGO, CA – May 1, 2007) - e.Digital Corporation (OTC: EDIG) a proven technology innovator of dedicated portable inflight entertainment (IFE) systems and patented flash memory-related technology, announced today that it has received an initial eVU portable entertainment systems and services order from Lufthansa. In connection with this initial order, the Company has also entered into supply and content integration agreements with Lufthansa. This order is part of the new orders and contracts e.Digital announced on March 29, 2007.

Beginning this summer, Lufthansa will provide eVUs to Business Class passengers utilizing its 44 and 48-seat all-business class routes between Newark, NJ and Munich, Germany, and between Newark and Chicago O'Hare and Dusseldorf, Germany. eVUs will also be provided to Business Class passengers on Lufthansa's long-range Airbus 300-600 flights. eVU content will feature a selection of Hollywood movies, audio channels and a variety of games. The graphical user interface (GUI), customized for Lufthansa, will offer a variety of language options including English, German, Spanish, Portuguese, French, Italian, Russian and Arabic - to complement the airline's diverse customer base on these routes.

e.Digital’s next generation studio-approved eVU portable entertainment system features a customizable passenger-friendly GUI and 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 technology through its removable “Smart” rechargeable high capacity battery pack.

“We’re delighted to be working directly with Lufthansa, one of the world’s premier airlines,” said Will Blakeley, president and chief technical officer of e.Digital. “We look forward to supporting Lufthansa and their portable IFE hardware and services requirements,” commented Fred Falk, e.Digital’s vice president of corporate development.