September 17, 2007

LUFTHANSA PROVIDING e.DIGITAL’S PORTABLE 7” eVU™ IFE SYSTEM AND SERVICES ON SELECTED ROUTES

(SAN DIEGO, CA – September 17, 2007) - e.Digital Corporation (OTC: EDIG) a leading innovator of dedicated portable inflight entertainment (IFE) systems and patented flash memory-related technology, announced today that Lufthansa is providing e.Digital’s proprietary 7” portable eVU™ entertainment system and services on selected routes to passengers utilizing its 44 and 48-seat all-Business Class routes between Newark, N.J. and Munich, Germany, and between Newark and Chicago O'Hare and Dusseldorf, Germany. eVUs are also being provided to Business Class passengers on Lufthansa's long-range Airbus 300-600 flights between Frankfurt, Germany, Cairo, Egypt and Almaty, Kazakhstan.

e.Digital’s eVU systems were successfully launched in June and support equipment was installed in Frankfurt, Munich and Dusseldorf airports which included e.Digital’s proprietary 98-unit content docking stations providing Lufthansa the ability to update over 300 eVU’s simultaneously without connecting any cables.

e.Digital customized its graphical user interface (GUI) for Lufthansa in a variety of language options including English, German, Spanish, Portuguese, French, Italian, Russian and Arabic - and emulates Lufthansa’s embedded IFE systems offering the airline's diverse customer base a seamless user experience on these routes.

e.Digital’s enhanced studio-approved eVU portable entertainment system features a multi-language customizable passenger-friendly interface and an industry-leading 20+ hours of continuous video playback from a single battery charge. eVU 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 features through its removable “Smart” rechargeable high capacity battery pack.

“To fully support Lufthansa and our growing IFE business in Europe, we established a working relationship with Lufthansa Teknik, a premier European services company,” remarked Fred Falk, vice president of corporate development for e.Digital. “We appreciate the opportunity to work with Lufthansa and support their portable IFE and services needs.”

e.Digital is showcasing its enhanced eVU mobile entertainment system and services in Booth #1200 at the 28th Annual World Airline Entertainment Association (WAEA) Exhibit and Conference being held this week in Toronto.

About e.Digital Corporation: e.Digital is a provider of secure portable Video on Demand products including its proprietary eVU™ portable entertainment system. e.Digital also owns and is pursuing the monetization of its portfolio of flash memory-related patents. For more information about e.Digital and eVU, please visit: www.edigital.com.

Safe Harbor statement under the Private Securities Litigation Reform of 1995: All statements made in this document, other than statements of historical fact, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act. You should not place undue reliance on these statements. We base these statements on particular assumptions that we have made in light of our industry experience, the stage of product and market development, expected future developments and other factors that we believe are appropriate under the circumstances. These forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the businesses of the Company and the industries and markets in which the Company operates. Actual outcomes and results may differ materially from what is expressed or implied by the forward-looking statements. More information about potential factors that could affect the Company can be found in its most recent Form 10-K, Form 10-Q and other reports and statements filed with the Securities and Exchange Commission (“SEC”). e.Digital Corporation disclaims any intent or obligation to update these or any forward-looking statements, except as otherwise specifically stated by it.

CONTACT: e.Digital Corporation: Robert Putnam, (858) 304-3016 ext. 205, rputnam@edigital.com