Service, sales, warranty work?

2007: $1.8 million

2008 $5.6 million ** 206% oncrease over '07

2009 $11.1 million ** 99% increase over '08

e.DIGITAL ANNOUNCES RECORD REVENUES AND PROFITABLE RESULTS FOR FISCAL YEAR 2009

(SAN DIEGO, CA, – June16, 2009) – e.Digital Corporation (OTC: EDIG), a leading technology innovator of dedicated portable entertainment systems and patented flash memory-related technology, today announced record revenues of $11.1 million for its fiscal year ended March 31, 2009, an increase of 99% over fiscal year 2008 revenues. Revenues for fiscal year 2009 included $10.1 million in licensing fees from the Company’s Flash-R™ patent portfolio. e.Digital also announced net income attributable to common stockholders for fiscal year 2009 of $2.8 million or $0.01 per diluted share, compared to a net loss attributable to common stockholders of $1.8 million or $(0.01) per diluted share for fiscal year 2008. The $4.6 million improvement was the result of higher margin patent license revenues that offset a decline in eVU™ product and service revenues.