SAN DIEGO, CA, July 1, 2008) - e.Digital Corporation (OTC: EDIG), a leading technology innovator of dedicated portable entertainment systems and patented flash memory-related technology today announced it sold $750,000 of Series AA Convertible Preferred shares and warrants to selected accredited investors including the Company’s senior vice president, Robert Putnam.

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"Digital recording on to flash memory has become a standard in portable electronic products,” said Robert Putnam, senior vice president of e.Digital Corporation. Putnam initiated and oversees e.Digital’s IP monetization efforts. “e.Digital created and patented important intellectual property in the use and utilization of flash memory in portable electronics products that we believe is being widely used in cell phones, cameras, camcorders, PDA’s and other popular devices without our consent."