SHAREHOLDER ALERT


E.DIGITAL CORPORATION FILES DEFINITIVE PROXY STATEMENT FOR GENERAL MEETING OF SHAREHOLDERS


(SAN DIEGO, CA. - August 4, 2008)—e.Digital Corporation (OTCBB: EDIG), a leading technology innovator of dedicated portable entertainment systems and patented flash memory-related technology announced today that it has filed its Definitive Form 14A (proxy) for the General Meeting of Stockholders scheduled for Wednesday, September 17, 2008 at 2:00 p.m. Pacific Time. The meeting is scheduled to take place at the Company’s corporate offices in San Diego (16770 West Bernardo Drive). To view the proxy (filed August 1st with the Securities and Exchange Commission) and details of the proposals to be voted upon at the meeting, please go to:

http://www.sec.gov/Archives/edgar/da...

Proxy materials are in the process of being mailed to shareholders of record as of July 21, 2008.

e.Digital is scheduled to release financial results for the quarter ended June 30, 2008 and provide updated information on its eVU™ business and its efforts to monetize the Company’s Flash-R™ patent portfolio this month.

About e.Digital Corporation: e.Digital is a leading innovator of dedicated portable inflight entertainment systems. More than 30 airlines have made dedicated portable systems powered by e.Digital technology their inflight entertainment choice. e.Digital also owns and is pursuing the monetization of its Flash-R™ portfolio of flash memory-related patents. e.Digital was the first company to employ and patent important aspects of the use of removable flash memory in portable recording devices. For more information about e.Digital and eVU, please visit: www.edigital.com.

Safe Harbor statement under the Private Securities Litigation Reform of 1995: All statements made in this document, other than statements of historical fact, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act. You should not place undue reliance on these statements. We base these statements on particular assumptions that we have made in light of our industry experience, the stage of product and market development, expected future developments and other factors that we believe are appropriate under the circumstances. These forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the businesses of the Company and the industries and markets in which the Company operates. Actual outcomes and results may differ materially from what is expressed or implied by the forward-looking statements. More information about potential factors that could affect the Company can be found in its most recent Form 10-K, Form 10-Q and other reports and statements filed with the Securities and Exchange Commission (“SEC”). e.Digital Corporation disclaims any intent or obligation to update these or any forward-looking statements, except as otherwise specifically stated by it.

CONTACT: e.Digital Corporation: Robert Putnam, (858) 304-3016 ext. 205, rputnam@edigital.com