SAN DIEGO, CA, July 28, 2005 e.Digital Corporation (OTC: EDIG), a leading innovator of proprietary digital technology platforms, today announced preliminary unaudited revenues of approximately $950,000 for the quarter ended June 30, 2005. The company also announced that it expects revenues in its second fiscal quarter (Q2 - 2006) ending September 30, 2005 to exceed $1.6 million.

We expect increased fiscal 2006 revenues by designing, developing, manufacturing, selling and supporting versions of our proprietary content-protected digital video/audio technology platform (DVAP) to current and emerging customers, said Atul Anandpura, e.Digital s president and chief executive officer.

We expect DVAP-based Kino devices will contribute revenues in fiscal 2006, along with new customer-branded closed system versions of our DVAP. We also expect additional orders and business from APS/Wencor.

Recent results evidence that our strategy of aligning our DVAP with desirable video content and focusing on companies providing or pursuing the sales or rentals of closed system secure video products is working. We look forward to providing more information regarding current and emerging business as events occur and as our business customers announce their products.

Concluded Anandpura, We thank our shareholders for their support and look forward to presenting e.Digital s latest business developments at our upcoming annual meeting.