The summary numbers aren`t exact, but outline the substantial disparity.

From the PR dated:

12/22/04………..3rd PR about Q 3 & 4 ``expected`` revenue……………………

``today announced it expects revenues and advance payments, on purchase orders for products scheduled to ship next quarter, of over $2.2 million for the quarter ending December 31, 2004 with further business growth expected in the fourth quarter ending March 31, 2005.``

Note the $2.2 and further growth which says more than $2.2.

Based on the above we should see Q4 better than Q3 of $2.2 at the time the communication was made. Let`s say Q4 at $2.5 mil.

Since we missed Q3 by $781k, and add 2.5 mil, the total for Q4 calculates to at least $3.281. This will tell us if they are continuing to feed us with true statements or are they still using flip flop terms.

(SAN DIEGO, CA, February 14, 2005) – e.Digital Corporation (OTC: EDIG), a leading innovator and provider of proprietary digital technology platforms, today reported revenues for the third quarter of fiscal 2005, ended December 31, 2004. Revenues for the quarter were $1.419 million, a 98% increase over the $0.718 million recorded in the third quarter of fiscal 2004.

Revenues for the first nine months ended December 31, 2004 were $3.540 million compared to $2.970 million for the same nine months last year.

The company also reported $0.967 million in advance payments (customer deposits) at December 31, 2004.

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Summary: Q3 was 1.419 million, 781 less than stated, a total of 2.2 minimum per the PR.. They had 967 carryover to Q4, as of Dec 31, 2004.

Fiscal Year total is estimated to be 4.200, while 9 months YTD was 3.540, indicating Q4 will be approx 660k.

If Q4 was expected to be higher than 2.2 as reported in their PR of 12/22/04 and adding either 718k or 967k , we should have seen Q4 at a minimum of 2.9 to 3.2 million.

This is an approx difference of 2.2 to 2.5 million lost revenue from earlier statements.

The term ``expected`` cannot carry that kind of a discrepancy.