(SAN DIEGO, CA, August 17, 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, announced today that it has filed a motion seeking to amend its response to the digEcor complaint with the following counterclaims:

• e.Digital is seeking an injunction barring digEcor and its agents from alleging, asserting, declaring or implying that e.Digital is in breach of the 2002 NDA, the 2002 Agreement, the Purchase Order, and/or the DRM agreement in any way, or that e.Digital is limited in any way by those agreements, any other agreements between e.Digital and digEcor, or any other right of digEcor, from manufacturing, marketing or selling its eVU™.

• e.Digital is seeking an injunction against digEcor’s manufacture and/or sale of their next generation player (currently marketed as the “digEplayer XT”) to the extent digEcor and its agents have improperly used e.Digital’s confidential information as alleged in the full amended response.

Further legal action is also being contemplated.