FOR IMMEDIATE RELEASE

e.DIGITAL CORPORATION REPORTS Q3 FISCAL 2006 RESULTS

Company Amends Q2 Fiscal 2006 Filing, Begins eVU™ Trial Deliveries

and Initiates Intellectual Property Partnering Efforts

e.Digital further announced today that it has initiated efforts to partner with an intellectual property management company to jointly pursue monetizing the company’s patent portfolio.

“With the proliferation of flash memory based products and the increasing recording capacity of flash, we believe our patent holdings in this area are fundamental and valuable, particularly in the areas of content file management, optimal flash memory management, and in removable flash applications,” concluded Blakeley. “With the assistance of an intellectual property management partner, our strategy is to aggressively pursue licensing agreements with companies we believe have products utilizing our intellectual property.”