SAN DIEGO, CA, November 15, 2004) – e.Digital Corporation (OTC: EDIG), a leading innovator and provider of proprietary digital technology platforms, today reported record revenue for the second quarter of fiscal 2005, ended September 30, 2004. Revenue for the quarter was $2.028 million, an 85% increase over the $1.097 million recorded in the second quarter of fiscal 2004.

The company reported a gross profit of $0.367 million in the second quarter compared to $0.135 million for the same quarter in fiscal 2004. The company also reported a smaller operating loss of $0.367 million for the quarter compared to $0.725 million for the same period in fiscal 2004.