Proprietary Video/Audio Technology Platform Fueling Business Expansion

(SAN DIEGO, CA, December 22, 2004) – e.Digital Corporation (OTC: EDIG), a leading innovator of proprietary digital technology platforms,...........

Anandpura continued, “Beyond the IFE industry, our video/audio technology platform has brought us new business opportunities from industries and companies where our platform’s features enable their product plans.”

“By continuing to expand the capabilities of our patented MicroOS™, e.Digital is at the forefront of innovating and integrating the latest technology into business and entertainment devices. While we are proud of our early pioneering efforts, the majority of our business growth is expected to come through successful partnering with companies who share our vision of enabling large business and consumer markets with user-friendly devices that are either pre-loaded with, or can easily and quickly access, secure content through new high-speed downloading protocols, with our patent-pending hardware encryption protecting the content.”

Concluded Anandpura, ``......At the upcoming Consumer Electronics Show (January 6 – 9, 2005), the next generation of our video/audio technology platform is scheduled to be unveiled in private meetings by e.Digital and by a large unannounced Asian customer. Both companies are scheduled to hold meetings with certain current and prospective customers. We expect significant business from this latest version of our platform will be announced within the next two quarters. Because of this and other new business developments, we are hiring additional engineering resources to meet increasing business demand. We look forward to releasing further business updates with revenue guidance, and announcing new business developments next quarter and throughout the coming year.”

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Anandpura continued, “Last quarter, we refined and augmented the Kino™ version of our video/audio technology platform for meetings with prospective customers at the January 2005 Consumer Electronics Show (CES). Based on the meetings held by us, and those of an established Asian customer, we expect revenues this year from the sales of branded Kino-based devices.”

“We also continue to develop promising opportunities for devices based on our secure video/audio technology platform for high-speed video download kiosk-centered businesses.”