SECOND QUARTER FISCAL 2006 REVENUES

Receives Notice of New IFE Order

(SAN DIEGO, CA, - October 14, 2005) - e.Digital Corporation

(OTC: EDIG), a leading innovator of proprietary digital

technology platforms, today announced preliminary revenues for

the second fiscal quarter of 2006 ended September 30, 2005 to be

over $1.8 million compared to $2 million for the same period last

year. For the six months ended September 30, 2005, the company

announced preliminary revenues to be over $2.8 million compared

to $2.1 million for the six months ended September 30, 2004.

The company also reported it has received notice of a new

digEplayerT order from digEcorT (formerly APS) for approximately

$750,000, which it expects to ship this quarter. e.Digital also

expects to receive orders for it`s new MedeViewer E7T this

quarter from companies in the healthcare and travel and leisure

industries.

``We continue to make progress growing annual revenues and

reducing losses,`` said Atul Anandpura, president and chief

executive officer of e.Digital Corporation. ``We are experiencing

a growing market for versions of secure, closed system video

products which we are moving to exploit through versions of our

new proprietary digital video/audio technology platform (DVAP).``

Commenting on digEcor`s decision to develop their own products,

Robert Putnam, e.Digital`s senior vice president said,

``Intellectual property rights, non-recurring engineering fees,

and the size of guaranteed orders were the major issues that

precluded us from reaching an agreement on supplying an embedded

system. While we appreciate notice of digEcor`s latest order, we

understand their desire to go their own direction in order to

secure their own intellectual property for the digEplayer.``

``We are proud to be the company that designed, developed, and is

manufacturing (through our partners in Asia) the first portable

in-flight entertainment product which is currently being used by

20 airlines,`` said Fred Falk, e.Digital`s vice president of

business development. ``Based on our proprietary first generation

DVAP, the award winning digEplayer showcases our expertise in

closed system video products, content loading and playback. Its

success has opened doors to new business opportunities with

companies who share our desire to exploit new markets for closed

system video products utilizing our proprietary next generation

DVAP.``

e.Digital`s new DVAP will come in the form of a finished product

with the following planned features:

. High resolution digital LCD

. Embedded magnetic card reader

. Touch screen capabilities

. Internet access

. Voice over IP (VoIP)

. Full featured graphical user interface

. Content security

. RFID for tracking and theft control

. Access to e.Digital-supplied content

Concluded Putnam, ``With orders expected for our MedeViewer E7

this quarter and in the next quarter, and based on current and

emerging business from the healthcare and travel and leisure

industries, and other markets, we expect fiscal 2006 annual

revenues and business to exceed fiscal 2005 revenues and

business. We also expect to be much more active with new

customers in media and press opportunities for e.Digital and our

next generation proprietary DVAP technology.``

These preliminary revenue results are subject to completion of

quarter end accounting procedures by e.Digital`s management and

to review by its independent auditors. e.Digital expects to

announce its final results for the second fiscal quarter ended

September 30, 2005 by mid-November 2005.

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

MicroOST-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.

Note: MicroOS and MedeViewer E7 are trademarks of e.Digital

Corporation. digEcor and digEplayer are trademarks of Wencor.

All other company, product, and service names are the property

of their respective owners.

CONTACT:

e.Digital Corporation: Robert Putnam, (858) 679-1504,

rputnam@edigital.com