``They should not be retained or given more shares to finance the payment of $163,000 for CEO who cannot deliver.``

Uhhhh, hey Einstein...Atul Anandpura was CEO for only 9 months during FY05 and FY05 was a better year financially for the company than FY04...and with a lower operating loss.

SAN DIEGO, CA, – June 22, 2005) – e.Digital Corporation (OTC: EDIG) today reported revenues for the fiscal year ended March 31, 2005 (the Company’s fiscal 2005) totaled $4.25 million, a 24% increase over fiscal 2004 revenues of $3.42 million. The company reported a $997,000 or 23% gross profit in the fiscal year compared to $689,000 or 20% for fiscal 2004. The company also reported a slightly reduced operating loss of $2.04 million for the fiscal year compared to $2.33 million in fiscal 2004.

P.S. BTW, brilliant tactical move selling at 13 cents. Pure genius.