e.digital CORPORATION TO FILE

REGISTRATION STATEMENT ON FORM S-3

(SAN DIEGO, CA, December 22, 2004) – e.Digital Corporation (OTC: EDIG), a leading innovator and provider of proprietary digital technology platforms, today announced that, on or before December 29, it is scheduled to file its Registration Statement on Form S-3 on time with the Securities and Exchange Commission in connection with the November Series EE preferred stock financing and the July 1, 2004 note financing (Nov. 19/Nov. 30 shareholder alerts, and July 2, 2004 Form 8K). In November, the company received gross proceeds of $1.85 million from the sale of Series EE preferred stock to accelerate development of the next generation of its proprietary video/audio technology platform and for general working capital. The company may receive up to an additional $2.035 million upon full exercise of the Series EE warrants.

The common stock and warrants to purchase common stock have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States without a registration statement or exemption from registration.