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e.DIGITAL RECEIVES OVER $2.5 MILLION IN NEW eVU™

PORTABLE IFE SYSTEMS ORDERS AND CONTRACTS

(SAN DIEGO, CA – March 29, 2007) - e.Digital Corporation (OTC: EDIG) a proven technology innovator of dedicated portable inflight entertainment (IFE) systems and patented flash memory-related technology, announced today that it has received over $2.5 million in new orders and contracts for its proprietary eVU portable entertainment systems and services. The eVU systems orders are expected to ship before June 30, 2007 and the direct orders and contracts are subject to future performance by all parties and to standard warranties and intellectual property indemnifications including certain remedies, ranging from modification to product substitution or refund as well as related contractual requirements. 

“We’re proud that our ‘best in class’ eVU portable entertainment system is being selected by a growing number of airlines,” said Will Blakeley, president of e.Digital. “We look forward to providing more information about our growing eVU business and our intellectual property (IP) licensing enforcement efforts through IP counsel Duane Morris LLP in upcoming company communications.”