E.DIGITAL AND FUSION ANNOUNCE THE WORLD’S FIRST PORTABLE VIDEO RECORDER/PLAYER FOR DIGITAL VIDEO RECORDER (DVR)/SET TOP BOX CONTENT DOWNLOADING

FOR IMMEDIATE RELEASE

E.DIGITAL AND FUSION ANNOUNCE THE WORLD’S FIRST PORTABLE VIDEO RECORDER/PLAYER FOR DIGITAL VIDEO RECORDER (DVR)/SET TOP BOX CONTENT DOWNLOADING

Product to be Unveiled at Mediacast 2004 in London May 25 - 27

SAN DIEGO, CA – May 24, 2004 – e.Digital Corporation (OTC: EDIG) and Fusion Digital Technology Ltd (Fusion) today announce the world’s first portable, Personal Video Recorder for downloading audio and video content from Fusion’s range of digital TV receivers including the Digifusion FVRT200 (twin tuner 80 GB digital video recorder (DVR)), the Digifusion FRT200 (twin tuner DTT set-top box) and the Digifusion FRS200 (twin tuner DTH set top box). The revolutionary pPVR™ is scheduled to be unveiled at Mediacast 2004 in London May 25 – 27 at Fusion’s booth #D12.

Fusion Digital Technology Ltd. is a dynamic company focused on becoming a leader in the worldwide consumer electronics market. Fusion is a partnership of Barry Rubery, co-founder and former CEO of Pace Micro Technology plc and Beko Elektronik A.S., one of Europe’s largest consumer electronics manufacturers. With headquarters in North England and utilizing Beko’s manufacturing facilities, Fusion designs, manufactures and supplies free to air and pay TV digital receivers for satellite, cable and terrestrial platforms alongside integrated LCD and plasma televisions as well as other innovative digital consumer electronics solutions.

“e.Digital’s portable, Personal Video Recorder technology coupled with our DVR and set-top boxes will provide unparalleled flexibility, enabling DTT and satellite consumers to access their favorite music, shows and movies; they will be able to watch and listen to their favorite programs and music at a place and time of their choosing,” commented Barry Rubery, CEO of Fusion Digital Technology Ltd.

“After working with Barry and his team at Fusion for many months, we are pleased to announce this breakthrough product based on our proprietary personal video technology platform,” said Fred Falk, e.Digital’s president and CEO. “We strongly believe the portable, personal video recorder/player is quickly going to become a “must-have” consumer product. Fusion is leading the way by offering the e.Digital-powered pPVR™ to consumers in the UK and international markets.”

Mediacast 2004 is the leading international technology show for digital media distribution. It showcases the cutting-edge technologies that allow users to move, manage and secure and make money from digital content. Mediacast is the only exhibition of its kind presenting the latest interactive services and emerging technologies across cable, satellite, digital terrestrial television (DTT) and Internet platforms.

pPVR™ Key Features

– Offers ‘Personal video and audio on the Move’

– Has an integrated back-lit LCD screen

– Supports MPEG2 and MPEG4 playback

– Accepts MPEG2 streams from appropriate Digifusion set-top boxes to store on it’s HDD

– 20Gb Hard Disk Drive (up to 40 hours of video programming)

– Can download music and video from an analog source or from the Internet via a PC

– Completely portable, enabling users to play in their cars, anywhere outside their homes or in their homes through their entertainment systems

– Incorporates timer for recordings

About e.Digital Corporation: e.Digital Corporation partners with leading original equipment manufacturers (OEMs) licensing, designing and providing manufacturing services for OEM-branded digital video, digital audio and wireless products based on the Company’s proprietary MicroOS™-enabled technology platforms. e.Digital specializes in the delivery and management of open and secure digital content through it’s Personal Video, Personal Audio, Automotive, and Wireless technology platforms. e.Digital’s services include the licensing of the Company’s MicroOS™, custom software and hardware development, industrial design, and manufacturing services through the Company’s manufacturing partners. For more information about e.Digital and its technology platforms, please visit the company website at www.edigital.com.

About Fusion Digital Technology Ltd.: Fusion Digital Technology Ltd design, manufacture and supply innovative digital consumer electronics products for the international marketplace. The range includes both free to air and pay TV digital receivers for satellite, cable and terrestrial platforms alongside integrated LCD and plasma televisions. Fusion is a joint venture between industry pioneer Barry Rubery, founder and former Chief Executive of Pace Micro Technology plc, together with one of Europe’s largest consumer electronics manufacturers Beko Elektronik A.S. With its headquarters in Harrogate, North England, Fusion manufactures its products from its affiliated plants in Turkey. For more information, please visit www.fusiondigitec.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. 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. Those statements are not guarantees of future performance and involve risks, uncertainties and assumptions that will be difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by those 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 by e.Digital Corporation with the Securities and Exchange Commission (“SEC”). e.Digital Corporation disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated by it.