(SAN DIEGO, CA, – March 30, 2006) – e.Digital Corporation (OTC: EDIG), a leading innovator of secure digital video technology and products, and patented technology in the utilization of flash memory in portable devices, today announced it has begun receiving orders for its new proprietary eVU portable entertainment product from companies in the healthcare and travel and leisure industries. The company also unveiled a new, comprehensive eVU website (www.edigital.com/evu.htm) where prospective customers and other interested parties can take a virtual eVU tour, read its specifications and request additional information.

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, 10 hours of high resolution video playback on a single battery charge, and other advanced features.

“With pilot builds and trials behind us, we are now accepting volume eVU orders. eVU product maturity and the launch of our eVU website, positions us to make further progress in building our eVU closed system Video On Demand (VOD) business”, said Will Blakeley, e.Digital’s president and chief technical officer. “We are also responding to direct requests from individual airlines and IFE providers on eVU business opportunities. We have also made inroads with military organizations on secure video applications utilizing e.Digital’s proprietary technology. We expect to fulfill current and expected eVU orders next quarter and throughout calendar 2006.”

A few concerns about the last 6 months................

I don`t think the sale of non IFE has anything to do with the lawsuit. They had pilot units in the hands of potential customers probably since January and stated that they were ``receiving orders`` in non IFE industries. See the 1st paragraph of the above PR.

Why are all that on hold and the IFE at the top of the list? Is there still any interest in the healthcare, leisure, and travel industries, and what about the military which has seemed to drop out of sight?

Were listening to vague comments as in the past, nothing concrete and continued statements like next quarter without definition. Robert hasn`t changes his style of innuendoes, etc. as they told us they would do regarding releasing information.

I wonder who is selling and what are they trying to sell, and to what industry. Where are the orders from those pilot units that were in the hands of those potential customers?

Again the lawsuit deals with the IFE industry, not the eVU product and non IFE industries.

OZ