Will they deliver on health care as they are in IFE?

(SAN DIEGO, CA, – December 21, 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, provided the following update today on the status of its eVU™  mobile entertainment system business and efforts to monetize the Company’s flash memory-related patent portfolio:  

eVU™ Mobile Entertainment System Business 

Through U.K.-based Mezzo Movies and through our own direct sales efforts we are currently working with several Asian, European and North American airlines on eVU order deliveries, pilot programs and RFP requests. We are also in the process of finalizing our first IFE orders to a major European airline.

Additionally, we are working with one of the world’s largest airlines on an eVU trial that is scheduled to begin next quarter.  

We have also made progress in introducing eVU to well-known healthcare facilities in the U.S. These facilities have completed successful trials and are moving ahead with plans for eVU deployments. With the assistance of our partners who are focused on this business, we expect to begin delivering significant eVU orders to the healthcare industry in 2007.