(SAN DIEGO, CA, September 13, 2006) – e.Digital Corporation (OTC: EDIG), a leading innovator of proprietary secure digital video technology and products, and important technology in the use of flash memory in portable devices, announced it has requested the U.S. Patent & Trademark Office (USPTO) declare an interference between e.Digital’s U.S. Patent Application No. 10/938,060 and APS/digEcor U.S. Patent Application No. 10/657,822. The Company believes both patent applications are based upon proprietary security and encryption methods developed by e.Digital. The Company believes that these methods are used in the digEplayer 5500™.

e.Digital is asserting that the 10/657,822 APS/digEcor patent application was filed without its consent or knowledge using e.Digital’s documents and containing e.Digital’s proprietary intellectual property. e.Digital is requesting that the USPTO declare e.Digital the inventor and that it be awarded the patent rights to this key technology. e.Digital is also evaluating other actions it may take regarding this matter.

1250 Unit digEplayer™ Order

Based on personal inspection and direct contact with Maycom and its vendors, e.Digital believes that Maycom is on schedule to deliver the 1250 units in mid-October. e.Digital is actively monitoring Maycom’s progress and is scheduled to have personnel in Korea to inspect manufacturing and final assembly of the 1250 units. As previously stated, delivery of this order is not assured nor can there be assurance that digEcor will accept delivery pursuant to the terms of the order.