I asked Robert several questions [i.e., the recent RyanAir article, our video/audio platform progress, etc] and he responded in 10 minutes at 17:41 PST.

Thank you for your e-mail, Michael. e.Digital and an unannounced Asian customer held several private meetings at CES earlier this month where the next generation of our video/audio technology platform was unveiled. We believe the meetings were successful and we look forward to the release of further information in future company and customer communications.

We continue to work with companies interested in using our audio technology platform. However, as we have stated in our latest shareholder communications, we believe most of our business and revenue growth will be fueled by our video/audio technology platform.

We expect new and follow-on orders from APS/Wencor and their IFE customers. We look forward to releasing more information regarding orders as well as details regarding the next generation of this e.Digital-powered product in upcoming company communications. We are also working on new customer and product developments which we expect will be revealed later this year. We are scheduled to release our Form 10Q for the period ended December 31, 2004 before February 15. Please call me at your convenience if I can be of further assistance.

Best regards,

Robert Putnam

Sr. Vice President

e.Digital Corporation

13114 Evening Creek Drive South

San Diego, CA 92128

http://www.edigital.com

Tel: 858.679.3168

Fax: 858.486.3922

E-mail: rputnam@edigital.com