SAN DIEGO--(BUSINESS WIRE)--March 30, 2006--e.Digital Corporation (OTC:EDIG), a leading innovator of secure digital video technology and products and patented technology in the utilization of flash memory in portable devices, today announced it has begun receiving orders for its new proprietary eVU portable entertainment product from companies in the healthcare and travel and leisure industries. The company also unveiled a new, comprehensive eVU website (www.edigital.com/evu.htm) where prospective customers and other interested parties can take a virtual eVU tour, read its specifications and request additional information.

Based on e.Digital`s proprietary digital video technology, eVU features razor-sharp images on its 7`` high resolution LCD screen, superb audio fidelity, dual stereo headphone jacks, embedded credit card reader/processor, touch screen capabilities, bright full featured graphical user interface, e.Digital`s patent-pending hardware security technology, 10 hours of high resolution video playback on a single battery charge, and other advanced features.

``With pilot builds and trials behind us, we are now accepting volume eVU orders. eVU product maturity and the launch of our eVU website positions us to make further progress in building our eVU closed system Video On Demand (VOD) business,`` said Will Blakeley, e.Digital`s president and chief technical officer. ``We are also responding to direct requests from individual airlines and IFE providers on eVU business opportunities. We have also made inroads with military organizations on secure video applications utilizing e.Digital`s proprietary technology. We expect to fulfill current and expected eVU orders next quarter and throughout calendar 2006.``

Addressing e.Digital`s recently announced efforts to monetize its flash memory-related patent portfolio, Blakeley commented, ``According to research from CLSA Asia-Pacific Markets, global demand for flash memory is expected to reach $25 billion this year, due mainly to the rapid proliferation of handheld devices. We believe the timing and climate are right for us to pursue monetizing our flash memory-related patent portfolio which we believe contains fundamental and valuable claims regarding the use of embedded and removable flash memory in portable devices.``

e.Digital holds five flash memory-related patents (#5,491,774, #5,742,737, #5,787,445, #5,839,108, #5,842,170--The assignee name on four of the patents is Norris Communications, now known as e.Digital Corporation--The assignee name on the fifth patent is Comp General Corporation, a then-wholly owned subsidiary of Norris Communications).

``We have initiated the process of having the patents and claims independently evaluated,`` concluded Blakeley. ``When the evaluation process is completed, and with the assistance of an intellectual property management company, our strategy is to aggressively pursue licensing agreements with companies we believe have products utilizing e.Digital`s intellectual property.``