DIGEPLAYER™ ORDER FROM APS/WENCOR

Company Provides Update on

Annual Meeting of Shareholders Schedule

(SAN DIEGO, CA, May 17, 2005) – e.Digital Corporation (OTC: EDIG), a leading innovator and provider of proprietary digital technology platforms, announced today that it has received a follow-on $635,000 order from APS/Wencor for Ethernet-enabled digEplayers. With this order, the company has more than $1.8 million in orders, most with advance payments (customer deposits), to date in fiscal 2006.

Subject to the timely filing of the company’s Form 10-K, expected in late June, and the timely preparation of proxy filings and materials, e.Digital expects to announce the date and address of its annual meeting of shareholders before June 17, 2005. The company will provide a live audio webcast of the meeting, which is being scheduled for this summer in San Diego. Details of the broadcast will be announced before the meeting.

“Beyond the recent MicroOS™-powered digEplayer orders, we are encouraged with the progress being made on business opportunities involving enhanced versions of our proprietary video/audio technology platform outside of the in-flight entertainment industry,” commented Atul Anandpura, president and chief executive officer of e.Digital. “We are on schedule with the filing of our Form 10-K and the preparations for our annual meeting of shareholders. We expect to release further information on business and technology developments this quarter.”