E.DIGITAL CORPORATION ANNOUNCES AUDIO WEBCAST OF ANNUAL MEETING OF SHAREHOLDERS

(SAN DIEGO, CA, August 1, 2005)—e.Digital Corporation’s (OTCBB: EDIG), annual meeting of shareholders will be available live through an audio-only webcast on Thursday, August 4, 2005 at 2:00 p.m. Pacific Time.

Windows Media Player is required to access the webcast. For additional information on Microsoft`s Windows Media Player click here:

Windows Media Player

http://www.microsoft.com/windows/windowsmedia/download/default.asp

Please click here to register and listen to the webcast: eDigital Webcast

http://phx.corporate-ir.net/playerlink.zhtml?c=74480&s=wm&e=1111730

Individuals interested in listening to the webcast are encouraged to register in advance of the meeting and to temporarily disable any “pop-up” protection they may have before entering the webcast

An audio replay of the webcast will become available through the same link listed above approximately one hour after it concludes and will remain available for approximately 30 days.

Disclaimer: e.Digital has contracted for Internet audio streaming services through a reputable outside service provider. Although the company believes this service provider to be both reliable and effective, the company can make no guarantee as to the sound quality, ease of access, or level of customer service experienced by each participant.

About e.Digital Corporation: e.Digital Corporation partners with leading, innovative companies, designing and providing manufacturing services for their branded digital video/audio and wireless products based on the Company’s proprietary MicroOS™-enabled technology platforms. e.Digital specializes in the delivery, management, and protection of secure digital content through it’s technology platforms. e.Digital’s services include the licensing of the Company’s MicroOS, custom software and hardware development, industrial design, and manufacturing services through the Company’s manufacturing partners. For more information about e.Digital and its technology platforms, please visit the company website at www.edigital.com.

CONTACT:

e.Digital Corporation: Robert Putnam, (858) 679-1504, rputnam@edigital.com