e.Digital Corporation and subsidiary
                   Condensed Consolidated Balance Sheet
                  (000's omitted except per share amount)
                                (unaudited)

                                                    June 30,    March 31,
                                                      2010         2010
                                                       $            $
ASSETS
  Current
    Cash                                                 2,545        2,819
    Accounts receivable                                    162          109
    Inventory                                              292          347
    Deposits and prepaid expenses                           24           59
                                                  ------------ ------------
  Total current assets                                   3,023        3,334
    Property and equipment, net                              9           11
                                                  ------------ ------------
  Total assets                                           3,032        3,345
                                                  ============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY
  Current
    Accounts payable                                       118           52
    Accrued and other                                      194          316
                                                  ------------ ------------
  Total current liabilities                                312          368
  Stockholders' equity                                   2,721        2,977
                                                  ------------ ------------
  Total liabilities and stockholders' equity             3,033        3,345
                                                  ============ ============



                   e.Digital Corporation and subsidiary
              Condensed Consolidated Statement of Operations
                 (000's omitted except per share amount)
                               (unaudited)

                                                   For the three months
                                                      ended June 30,
                                                     2010         2009
                                                       $            $
Revenues                                                  512          223
Cost of revenues                                          338          121
                                                 ------------ ------------
  Gross profit                                            174          102
Operating expenses:
  Selling and administrative                              366          577
  Research and development                                158           79
                                                 ------------ ------------
Total operating expenses                                  524          656
                                                 ------------ ------------
Operating income (loss)                                  (350)        (554)
Other income (expenses)                                     -          (15)
                                                 ------------ ------------
Income (loss) before income taxes                        (350)        (569)
Provision for income taxes                                  -            -
                                                 ------------ ------------
Income (loss)                                            (350)        (569)
Dividends on convertible preferred stock                  (31)         (43)
                                                 ------------ ------------
Income (loss) attributed to common stockholders          (381)        (612)
                                                 ============ ============
Income (loss) per common share - basic
 and diluted                                            (0.00)       (0.00)
                                                 ============ ============

Weighted average common shares outstanding
  Basic and diluted                                   287,017      282,507
                                                 ============ ============