(SAN DIEGO, CA, December 22, 2004) – e.Digital Corporation (OTC: EDIG), a leading innovator of proprietary digital technology platforms, today announced it expects revenues and advance payments, on purchase orders for products scheduled to ship next quarter, of over $2.2 million for the quarter ending December 31, 2004 with further business growth expected in the fourth quarter ending March 31, 2005.

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I`m not certain on this, but I believe EDIG does not book advance payments as revenue until the product ships. While the money is there, the 2.2M may include some revs for this Q and some revs for next Q, IMO.

John