e.DIGITAL CORPORATION ANNOUNCES RESULTS FOR THE SECOND QUARTER AND SIX MONTHS ENDED SEPTEMBER 30, 2005

(SAN DIEGO, CA, – November 15, 2005) – e.Digital Corporation (OTC: EDIG), a leading innovator of proprietary digital video technology platforms, today reported revenues for the second quarter of its fiscal year 2006 ended September 30, 2005 totaled $1.99 million compared to revenues of $2.03 million for second quarter of fiscal 2005, a decrease of less than one percent. Revenues for the first six months of fiscal 2006 ended September 30, 2005 totaled $2.99 million compared to revenues of $2.12 million for the first six months of fiscal 2005, an increase of 40 percent.

Gross profit for the second quarter of fiscal 2006 was $540,000 compared to $367,000 for the same period of fiscal 2005. Gross profit for the first six months of fiscal 2006 was $711,000 compared to $436,000 for the same period of fiscal 2005.

The company reported a reduced operating loss of $145,000 for its second fiscal quarter 2006, compared to an operating loss of $394,000 for the same period last year. The company reported an operating loss of $675,000 for the first six months of fiscal 2006 compared to an operating loss of $1.10 million for the same period last year. The decrease in operating loss resulted from the increase in gross profit for the six-month period and a decrease in operating expenses.

Net loss available to common stockholders for the second fiscal quarter of 2006 was $(0.00) per basic diluted share, compared to $(0.00) per basic diluted share for the same period last year. Net loss available to common stockholders for the first six months of fiscal 2006 was $(0.01) per basic diluted share, compared to $(0.01) per basic diluted share for the same period last year.

The company also announced it has received a formal digEplayer™ purchase order from digEcor worth approximately $1.2 million, $750,000 of which it expects to ship this quarter.

“We are making steady progress growing annual revenues and reducing losses,” said Will Blakeley, e.Digital’s new president and chief technical officer. “I am very excited to be leading a company that has a dynamic blend of senior engineering talent and experience, proprietary video/audio and content protection technologies, and a growing market and customer base for versions of secure, closed system video products based on our new digital video/audio technology platform (DVAP). We are working to enhance e.Digital’s proprietary technologies, maximize our DVAP-based business opportunities, and grow annual revenues through current and new business expansion.

“I came to e.Digital because I believe we are well-positioned to exploit a developing market that has tremendous potential,” concluded Blakeley. “We expect fiscal 2006 revenues will exceed fiscal 2005 revenues and look forward to launching our proprietary MedeViewer™ with customers and partners in the healthcare and travel and leisure industries.

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 its 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 http://echo.bluehornet.com/ct/ct.php?t=1079244&c=668382981&m=m&type=4.

Safe Harbor statement under the Private Securities Litigation Reform of 1995: All statements made in this document, other than statements of historical fact, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act. You should not place undue reliance on these statements. We base these statements on particular assumptions that we have made in light of our industry experience, the stage of product and market development, expected future developments and other factors that we believe are appropriate under the circumstances. These forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the businesses of the Company and the industries and markets in which the company operates. These statements are not guarantees of future performance and involve risks, uncertainties that could cause actual results to differ materially from those suggested in the forward-looking statements, including but not limited to the Company’s ability to finance its operations, ability of the Company’s manufacturing partner to manufacture and ship orders in a timely manner, acceptance of customer-branded products, securing additional business, and other risks identified and discussed in our filings with the Securities and Exchange Commission (“SEC”). Actual outcomes and results may differ materially from what is expressed or implied by the forward-looking statements. More information about potential factors that could affect the Company can be found in its most recent Form 10-K, Form 10-Q and other reports and statements filed by e.Digital Corporation with the Securities and Exchange Commission (“SEC”). e.Digital Corporation disclaims any intent or obligation to update these or any forward-looking statements, except as otherwise specifically stated by it.

Note: MicroOS and MedeViewer are trademarks of e.Digital Corporation. digEplayer is a trademark of digEcor (formerly APS/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

e.Digital Corporation and subsidiary

Condensed Balance Sheet

(000`s omitted except per share amounts)

(audited)

September 30, 2005

March 31, 2005

$

$

ASSETS

Current

Cash

380

1,290

Accounts receivable

22

52

Prepaid expense and other

78

505

Total current assets

480

1,847

PP&E and other assets

94

126

Total assets

574

1,973

LIABILITIES AND STOCKHOLDERS` DEFICIT

Current

Accounts payable

607

522

Accrued liabilities

587

616

Customer deposits

41

707

Leased liabilities

515

515

Promissory notes short-term

1,913

977

Total current liabilities

3,663

3,337

Long-term liabilities

-

897

Stockholders` deficit

(3,089)

(2,261)

Total liabilities and stockholders` deficit

574

1,973

e.Digital Corporation and subsidiary

Condensed Statement of Operations

(000`s omitted except per share amounts)

(audited)

For the three months ended

September 30,

For the six months ended

September 30,

2005

2004

2005

2004

$

$

$

$

Total revenue

1,990

2,028

2,988

2,122

Cost of revenue

1,450

1,661

2,277

1,686

Gross profit

540

367

711

436

Operating expenses:

Selling, general and administrative

397

399

735

745

Research and development

288

362

650

789

Total operating expenses

685

761

1,386

1,534

Loss from operations

(145)

(394)

(675)

(1,098)

Other income (expense):

Interest expense

(112)

(117)

(233)

(147)

Other

2

-

6

(2)

Total other income (expense)

(110)

(117)

(227)

(149)

Net loss

(255)

(510)

(902)

(1,247)

Dividends on convertible preferred stock

(43)

(37)

(86)

(85)

Net loss available to common stockholders

(297)

(547)

(986)

(1,332)

Net loss per share of common stock

- basic and diluted

(0.00)

(0.00)

(0.01)

(0.01)

Average weighted number of common

stock outstanding.

175,260,876

164,386,736

175,208,630

163,250,768