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New Models Enhance Offering of Odyssey Price Points and Selection

The Odyssey(TM) 150 and Odyssey(TM) 800 are both PC and Mac compatible and possess many of the same features as other Odyssey players but have different storage capacities and price points. Both players will be available to consumers this fall.

Tom Boksa, e.Digital's vice president of consumer electronics, said, "We developed these products as a result of feedback from existing and potential retail customers who desire a wider range of selection and price points for their customers. The Odyssey 150 and Odyssey 800 have been leveraged from our existing product designs to meet these needs."

The Odyssey 800 offers the same range of features as the Odyssey 1000 at a lower cost for consumers who don't require as much storage. It is identical in functionality to the Odyssey 1000, but has a 15 Gigabyte instead of a 20 Gigabyte hard drive, and is priced at an attractive $50 less than the Odyssey 1000. It boasts the same stellar features as the Odyssey 1000, including superb sound quality, outstanding battery life, MP3 and Windows Media(TM) WMA playback, digital voice recording and data storage.

The Odyssey 150 is a highly compact digital music player that has all the same features as the Odyssey 100 but with 128 MB of memory instead of 64 MB. It also has a SmartMedia card expansion slot allowing users to add up to 128 MB more storage. It has high-quality sound and boasts the same amazing 30 hours of battery life from one AA battery as the Odyssey 100.

According to Jim Collier, president and COO of e.Digital, "Our ability to respond quickly to the demands of the market is the direct result of our close relationship with our strategic partner Digitalway. These new models will enhance our line of Odyssey digital audio players. The e.Digital line provides a complete set of features at attractive price points for consumers."

About e.Digital

e.Digital Corp. designs, licenses, brands, manufactures and sells digital audio products and technologies. The company's trademarked digital audio players include the MXP(TM) 100, Treo(TM) 15 and Treo 10, Odyssey(TM) 100, Odyssey 200 and Odyssey 300. The company also offers an engineering partnership for the world's leading electronics companies to link portable digital devices to PCs and the Internet. e.Digital develops and markets to consumer electronics manufacturers complete end-to-end solutions for delivery and management of open and secure digital media with a focus on music, voice and video players/recorders, and automotive infotainment and telematics systems. Other applications for e.Digital's technology include portable digital music players and voice recorders; desktop, laptop, and handheld computers; PC peripherals; cellular phone peripherals; e-books; video games; digital cameras; and digital video recorders. Engineering services range from the licensing of e.Digital's patented MicroOS(TM) file management system to custom software and hardware development, industrial design and manufacturing services. For more information on the company, please visit www.edig.com. To shop at the e.Digital online store, please visit www.edigital-store.com.

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. 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. Those statements are not guarantees of future performance and involve risks, uncertainties and assumptions that will be difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by those forward-looking statements. Factors that may affect the company's businesses, financial condition and operating results include future products and results, technological shifts, potential technical difficulties that could delay new products and services, competition, pricing pressures, the uncertainty of market acceptance of new products and services by OEM's and end-user customers, effects of changes in the economy, consumer spending, the ability of the company to maintain relationships with strategic partners and suppliers, the ability of the company to timely and successfully develop, maintain and protect its technology and product and service offerings and execute operationally, the ability of the company to attract corporate financing and the ability of the company to attract and retain qualified personnel. These factors may also include, but are not limited to, general market conditions, the company's ability to develop new products to meet market demand, the company's ability to maintain cost controls, the mix of products and services the company's customers require and the effects of natural disasters, international conflicts and other events beyond the company's control. 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 with the Securities and Exchange Commission ("SEC"). e.Digital disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated by it.

Note: e.Digital and Odyssey are registered trademarks of e.Digital Corp. Windows Media is a trademark of Microsoft Corp. All other company, product and service names are the property of their respective owners.

Contact:

     e.Digital Corp.
     Robert Putnam, 858/679-1504 (Investor Relations)
     robert@edig.com
        or
     Lisa Stevens, 858/679-1504 (Media Relations)
     PR@edig.com