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FOR IMMEDIATE RELEASE                                                                                                                                                                                           






(SAN DIEGO, CA, – December 21, 2006) – e.Digital Corporation (OTC: EDIG), a leading innovator of proprietary secure digital video technology and products, and patented technology in the utilization of flash memory in portable devices, provided the following update today on the status of its eVU™  mobile entertainment system business and efforts to monetize the Company’s flash memory-related patent portfolio:  

eVU™ Mobile Entertainment System Business 

Through U.K.-based Mezzo Movies and through our own direct sales efforts we are currently working with several Asian, European and North American airlines on eVU order deliveries, pilot programs and RFP requests. We are also in the process of finalizing our first IFE orders to a major European airline.

Additionally, we are working with one of the world’s largest airlines on an eVU trial that is scheduled to begin next quarter.  

We have also made progress in introducing eVU to well-known healthcare facilities in the U.S. These facilities have completed successful trials and are moving ahead with plans for eVU deployments. With the assistance of our partners who are focused on this business, we expect to begin delivering significant eVU orders to the healthcare industry in 2007.  

Revenue Update 

We expect to recognize $713,000 in revenue associated with the delivery of the 1250 unit digEplayer™ order this quarter ending December 31, 2006. With the assistance of our U.S.-based contract manufacturer, the majority of the over $1 million in eVU orders we reported in November are expected to ship this quarter. We expect to ship the balance of these orders early next quarter as well as receive new eVU orders in calendar Q1 2007.  

Flash Memory Patent Portfolio  

Because our flash memory-related patent portfolio covers hundreds of companies and thousands of products and extends our rights under the patents until 2015, the law firms we have contacted are being very thorough in their searches for prior art and their due diligence of our patent portfolio.  

Under the direction of veteran intellectual property (IP) consultant, Pat Nunally, and with the assistance of outside law firms, we have assembled the first comprehensive list of potential licensees of our flash memory-based patent portfolio. To date, we have identified 174 companies with 1,372 products that appear to employ our patent portfolio.  


About e.Digital Corporation:.  e.Digital is a provider of secure portable Video on Demand products including its eVU™ mobile entertainment system. e.Digital also owns and is pursuing the monetization of its portfolio of flash memory-related patents. e.Digital’s proprietary digital technology platform employs its MicroOS™ operating system, Content Mark-Up Language (CML) application, LDP software, patent-pending Hardware Security technologies, Digital Rights Management (DRM) solutions, Content Download applications, Encryption and Content Protection solutions, and Video Display software applications. For more information about e.Digital and its technology platforms, please visit the company website at 

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, favorably resolve the complaint filed by digEcor, Inc. against the Company and certain of its officers and employees, sell its products, manufacture and ship orders in a timely manner, secure additional business, monetize its patent portfolio 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 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: eVU and MicroOS are trademarks of e.Digital Corporation. All other company, product, and service names are the property of their respective owners.



e.Digital Corporation: Robert Putnam, (858) 304-3016 ext. 205,


  16770 West Bernardo Drive
  San Diego, CA 92127
  Phone: (866) 502-8234
  Fax: (858) 304-3023
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