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Message: e.DIGITAL REPORTS RECORD REVENUES AND

The answer is your 3.9 million amount is wrong.

AR = 2.1 Mil

Accounts receivable, trade

2,137,965

from the 10Q

e.Digital Corporation and subsidiary

CONSOLIDATED BALANCE SHEETS

December 31,

March 31,

2008

2008

(Unaudited)

$

$

ASSETS

Current

Cash and cash equivalents

742,740

122,116

Accounts receivable, trade

2,137,965

174,905

Inventories

516,034

489,238

Deposits and prepaid expenses

31,758

34,717

Total current assets

3,428,497

820,976

Property and equipment, net of accumulated depreciation of

$497,212 and $485,037, respectively

27,886

40,061

Total assets

3,456,383

861,037

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