e.DIGITAL ANNOUNCES IP INNOVATIONS GROUP

e.Digital Innovations Group (EDIG) Developing

Key New Technologies and Partnerships

(SAN DIEGO, CA, – December 15, 2010) – e.Digital Corporation (OTC: EDIG), long known as a focal point of commercial innovation, today announced the formation of the e.Digital Innovations Group (EDIG). EDIG’s charter is to further e.Digital’s history of innovation, develop a new, strong and diverse intellectual property portfolio and to collaborate with strategic partners to bring game-changing technologies and products to market.

“Throughout our twenty-two year history we have created foundational technologies, many of which are at the core of wireless headset, digital audio/video recorder and portable music player markets,” said Fred Falk, president and CEO of e.Digital Corporation. “Technology innovation has always been our principal value and our new EDIG business unit has been chartered with innovating and monetizing new technologies that we believe have significant potential for consumer products and industries.”

“Our EDIG division is already developing several new technologies and we have claimed rights in the areas of communication networks and digital data distribution,” added Falk. “Through EDIG, we expect to develop these and other emergent technologies, secure rights to the technologies and develop strategic relationships with partners who have the resources and infrastructure to leverage EDIG technologies in significant consumer markets.”

The EDIG division was formed by reorganizing current personnel and consultants, some previously assigned to entertainment systems development. While e.Digital continues its IFE business and aggressively exploiting its Flash-R™ patent licensing business, the new division focuses talent on novel technologies.

Falk concluded, “We will be releasing further details on some of EDIG’s new technologies next quarter in preparation for a planned March meeting of stockholders.”

About e.Digital Corporation: e.Digital is a leading innovator of dedicated portable inflight entertainment systems. More than 30 airlines have made dedicated portable systems powered by e.Digital technology their inflight entertainment choice. e.Digital also owns and is pursuing the monetization of its Flash-R™ portfolio of flash memory-related patents. e.Digital was the first company to employ and patent important aspects of the use of removable flash memory in portable recording devices. 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: Fred Falk, (858) 304-3016 ext. 202, ffalk@edigital.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it