e.DIGITAL CORPORATION RESPONDS TO DIGECOR COMPLAINT

(SAN DIEGO, CA, June 21, 2006) – e.Digital Corporation (OTC: EDIG), a leading innovator of proprietary, secure digital video technology and products, and patented technology in the utilization of flash memory in portable devices, released an update today on the digEcor complaint filed May 4, 2006.

e.Digital has engaged Utah counsel to respond to and defend against digEcor’s complaint. Our response to date has included:

• The removal of the complaint from state court to federal court to argue against the complaint more expediently, and pursue contemplated counterclaims.

• The filing of our Answer & Cross-Complaint in response to the digEcor complaint. We are seeking a declaratory judgment that none of the agreements between e.Digital and digEcor preclude or limit e.Digital’s marketing of the eVU™ portable secure entertainment system.

• The filing in federal court of a Motion to Dismiss unwarranted claims in the complaint, including claims for injunctive relief. Among other defenses, we believe the April 2002 non-disclosure agreement was superseded by a subsequent October 2002 agreement that has since expired and therefore there is no basis for injunctive relief. We are also confident that discovery and the facts of the case will establish that the remaining request for injunctive relief based on the Digital Rights Management agreement does not apply to the marketing of our eVUTM and content management system, which does not use Random Block Encryption (RBE) or content security technologies as specified in that agreement.

Other legal action is also being contemplated. (For more information about the digEcor complaint, please view the following link: http://www.edigital.com/shal051706.htm)

The following supporting documents are available for download on e.Digital’s website and are hyperlinked herein:

Attachment (a) Summary Letter that provides e.Digital’s position relative to the claim for injunctive relief.

Attachment (b) News release from APS/Wencor dated August 20, 2004 corroborating e.Digital’s position that e.Digital was/is in sole possession of the technology and intellectual property (IP) that constitute the digEplayerTM with the exception of the industrial design and case.

Attachment (c): April 2002 NDA that digEcor has based their claim upon.

Attachment (d): October 2002 agreement which superseded the August 2002 NDA and includes Paragraph Q, “ENTIRE AGREEMENT”.

Attachment (e): digEcor’s announcement to work with Triad Systems Engineering for next generation IFE products demonstrating digEcor’s intent to develop and manufacture their own IFE systems.

1250 Unit digEplayer™ Order

Last week, we received both written and verbal assurances from Maycom that they are targeting a mid-to-late August ship date for the delayed 1250 unit digEplayer™ order. This is the first time Maycom has provided us a ship date since they notified us in late March of their unwillingness or inability to complete this order. (For more information regarding this order, please view the following link: http://www.edigital.com/shal032306.htm). This appears to be a positive development and could substantially limit possible claims by digEcor. However, with the assistance of a law firm in Korea, we are continuing to pursue legal remedies against Maycom and its principal to compel performance.

About e.Digital Corporation:. Through customer and partnering relationships, e.Digital is a provider of secure portable Video on Demand products. e.Digital’s services include the licensing of the Company’s MicroOS™, Content Mark-Up Language (CML) application, LDP software, patent-pending Hardware Security technologies, Digital Rights Management (DRM) solutions, Content Download applications, Encryption and Content Protection solutions, and Video Display software applications. In addition, e.Digital partners with leading, innovative companies, designing and providing manufacturing services for products employing the Company’s proprietary digital technology platforms. For more information about e.Digital and its technology platforms, please visit the company website at 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. These statements are not guarantees of future performance and involve risks, uncertainties that could cause actual results to differ materially from those suggested in the forward-looking statements, including but not limited to the Company’s ability to finance its operations, favorably resolve the complaint filed by digEcor, Inc. against the Company and certain of its officers and employees, sell its products, implement a turnkey financial, product, and maintenance solution, manufacture and ship orders in a timely manner, secure additional business, and other risks identified and discussed in our filings with the Securities and Exchange Commission (“SEC”). 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.

Note: eVU and MicroOS are trademarks of e.Digital Corporation. All other company, product, and service names are the property of their respective owners.

CONTACT:

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

e.Digital

16770 West Bernardo Drive

San Diego, CA 92127

Phone: (866) 502-8234

Fax: (858) 304-3023

Stock Symbol: EDIG.OB

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