June 27
FOR Immediate RELEASE


e.digital CORPORATION AND IP VETERAN PAT NUNALLY TEAM TO PURSUE MONETIZING COMPANY S FLASH MEMORY-RELATED PATENT PORTFOLIO



(SAN DIEGO, CA, June 27, 2006) e.Digital Corporation (OTC: EDIG), a leading innovator of proprietary, secure digital video technology and products, and patented technology in the utilization of flash memory in portable devices, announced today that it has contracted with wireless and intellectual property (IP) veteran, Pat Nunally, to lead e.Digital s efforts in identifying products and companies that may be utilizing the Company s flash memory-related IP and preparing e.Digital s patent portfolio for monetization.



Nunally has more than 20 years of experience in wireless and IP development. Nunally has directed the development of several companies IP efforts including Patriot Scientific. Nunally co-founded and was executive vice president of Wave Interactive Network (now Wave Systems). He also served as president and chief executive officer of Gruppe Telekom (now owned by Philips). Nunally previously held senior positions with Sensormatic, Intellisys Automation, E-Metrics, General Dynamics and Interstate Electronics.



Pat has already begun identifying products and companies that we believe are using our IP, said Will Blakeley, president and chief technical officer of e.Digital. Over the next few months, management will be working closely with him and other outside parties to process our patent portfolio and derive a valuation of our IP in products that we believe are utilizing our flash memory-related patents. We are also preparing the documentation, materials, and agreements necessary to initiate discussions with potential licensees of our patent portfolio.