It appears since your last reported meeting at EDIG more progress has been made beyond just the IFE market opportunity, hence the public statement as follows:

``e.Digital also announced that it is expanding initial deliveries of its new, proprietary eVU™ mobile entertainment system to companies in the healthcare and travel and leisure industries``

And since both murgirl and I received identical responses from RP just yesterday that these ``initial deliveries`` were order based, not trial based, it appears eVU business has started and the march to 4000 is underway.

Management has focused on profitability based strictly on eVU sales, set the target at 4000 units and now looks to be finally on that road.

Then there`s the wild card.....PATENTS !

06/29/06

FOR IMMEDIATE RELEASE

e.DIGITAL CORPORATION REPORTS FISCAL 2006 RESULTS

Company Provides Update on eVU™ Business and Flash Memory IP Efforts

(SAN DIEGO, CA, – June 29, 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, today reported revenues for its fiscal year 2006 ended March 31, 2006 totaled $3.3 million compared to revenues of $4.3 million for fiscal 2005. The decrease was due primarily to the inability or unwillingness of contract manufacturer, Maycom, to timely complete a 1250 unit digEplayer™ order as previously reported. At March 31, 2006 the Company had approximately $1.2 million of orders, but delivery by Maycom is behind schedule and not assured. However, e.Digital recently received assurances from Maycom for a mid-to-late August targeted delivery of this delayed 1250 unit order.

The Company reported an operating loss of $2.5 million for fiscal 2006, compared to an operating loss of $2 million for fiscal 2005. The increase in the operating loss was due primarily to an impairment charge of $604,000 for deposits related to the delayed 1250 unit order. Net loss available to common stockholders for fiscal 2006 was $(0.03) per basic diluted share, compared to $(0.02) per basic diluted share for fiscal 2005.

e.Digital also announced that it is expanding initial deliveries of its new, proprietary eVU™ mobile entertainment system to companies in the healthcare and travel and leisure industries (please go to the following link to view the product: www.edigital.com/evu.htm). Based on e.Digital’s proprietary digital video technology, eVU features razor-sharp images on its 7” high resolution LCD screen, superb audio fidelity, dual stereo headphone jacks, embedded credit card reader/processor, touch screen capabilities, bright full featured graphical user interface, e.Digital’s patent-pending hardware security technology, up to 10 hours of high resolution video playback on a single battery charge, and other advanced features.

“Our eVU mobile entertainment system and turnkey entertainment services business is being well-received, especially by companies in the in flight entertainment (IFE) industry,” said Will Blakeley, e.Digital’s president and chief technical officer. “We are excited to be working with Mezzo Movies and other companies who are offering eVUs to their customers/passengers/patients. With volume eVU production on track to begin next quarter with our U.S. manufacturer, we look forward to releasing order details as we receive the consent of our customers.”

In addition to direct product sales, e.Digital believes that as its turnkey entertainment services solution is adopted, the Company will capture more margin on each unit sale and collect monthly revenues from content and other services, and could become profitable with annual deliveries totaling approximately 4,000 eVU units.

Addressing e.Digital’s efforts to monetize its flash memory-related patent portfolio, Blakeley remarked, “With the assistance of IP veteran, Pat Nunally, and other outside groups and firms, we are identifying potential licensees in the cell phone, PDA/Pocket PC, portable A/V recorder, digital camera, camcorder, and other portable device industries. Pat and other outside groups and firms are also assisting us expedite the processing of our patent portfolio, derive a valuation of our intellectual property in products we believe are utilizing our patents, and prepare the foundational documentation, materials and agreements in order to pursue licensing agreements and the potential revenues they could generate.”