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Stylish Silhouette Featuring SRS Labs' WOW Audio Enhancement Shipping to D&H Distributing for College Bookstore Delivery Nationwide 

D&H distributes consumer electronics products to more than 3,000 college campuses nationwide, representing a market of millions of college students. It is one of America's largest wholesale distributors of consumer electronics to the educational market. The Silhouette is also now available on e.Digital's online store at: http://www.edigital-store.com.

The eagerly anticipated Silhouette is capable of playing prerecorded music CDs or CDs containing MP3 or Windows Media(TM) format (WMA) files. The Silhouette features SRS WOW audio enhancement from SRS Labs Inc. (Nasdaq:SRSL) to provide listeners with a panoramic 3D sound image, clear vocals and a deep, rich bass listening experience over headphones or small speakers. The Silhouette is the first MP3 player in the United States to feature SRS WOW audio enhancement. SRS WOW is a leading audio technology for digital audio enhancement and is a high-profile brand worldwide. SRS Labs is a world-renowned developer and provider of innovative audio, voice, and surround sound technologies to the world's leading consumer electronics manufacturers.

"The SRS WOW technology provides a dramatic audio enhancement to any digital music played on the Silhouette player," said Ted Franceschi, executive vice president of sales and marketing for SRS Labs Inc. "We are working closely with e.Digital to co-market their digital audio players featuring SRS WOW for the U.S. consumer market. Initially, we plan to include e.Digital's audio players within our WOW branding campaign and feature them on SRS Labs' Web sites."

The Silhouette rounds out D&H's inventory of e.Digital portable audio products, which also includes e.Digital's Odyssey(TM) 100 and 200 MP3 players as well as the Treo(TM) 15 personal digital jukebox. The intuitive Odyssey players are Mac and PC compatible, loaded with features, and economically priced. The palm-sized, lightweight Treo 15 boasts superior sound quality and has a massive, 15 GB hard drive that stores 3,800 tracks or up to 300 CDs worth of digital music.

According to Jim Collier, president and COO of e.Digital, "The Silhouette shipment comes at a perfect time as college students are stocking up on school and entertainment supplies at their campus bookstores. The Silhouette's appearance, sound quality, and MP3 and WMA playback capability will appeal to music-savvy college kids. And its size and functionality make it perfect for students who want to listen to their CDs on the go."

Sporting a sleek design and mirrored finish, the .70-inch (18 mm) Silhouette weighs only 6.9 ounces (196 grams), and is one of the slimmest MP3 CD players available. It combines exceptional audio quality with a user-friendly interface so users can play either burned or prerecorded music CDs in a small, lightweight device. Silhouette also comes with a wired remote as part of the standard package for easy navigation.

All Silhouette packages include a user guide, portable stereo earphones, a wired remote control, an AC adaptor/charger, a carrying case, and two rechargeable stick type NiMH batteries that provide up to 10 hours of playback time per charge. The Silhouette retails for $149 MSRP.

About SRS Labs Inc.

SRS Labs Inc. (www.srslabs.com) and its subsidiaries provide advanced technology solutions for high growth consumer markets, including home theater, DVD, portable audio, wireless devices, game consoles, automotive, broadcast, Internet and personal computer software. SRS Labs, the parent company, develops the core audio and voice technologies and licenses these patented technologies to over 200 well-known manufacturers and semiconductor companies, including Sony, RCA, Panasonic, Philips, Kenwood, Mitsubishi, Hitachi, Microsoft and Pioneer. ValenceTech, Ltd., (www.valencetech.com) SRS Labs' Hong Kong-based subsidiary, is a leading fabless application specific integrated circuit (ASIC) design and manufacturing company providing analog and digital ASIC solutions to the world's leading manufacturers of consumer electronics, gaming, telecommunications and computer products. SRS Labs' subsidiary, SRSWOWcast Technologies, (www.srstechnologies.com) focuses on the Internet and broadcast markets by developing and licensing customized hardware and software products incorporating SRS Labs' patented technologies. The information on the above-referenced Web sites is not incorporated by reference into this press release.

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) portable digital jukebox line, Silhouette(TM) ultra-slim MP3-CD player, and Odyssey(TM) line of flash- and hard disk drive-based players. e.Digital launched WeDigMusic.com to complement its digital audio players by providing consumers with a one-stop-shop for streaming and downloading music from thousands of artists on the Web. 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.

Editors Note: e.Digital, Silhouette, Odyssey and Treo are trademarks of e.Digital Corp. SRS Labs and SRS WOW are trademarks of SRS Labs. All other company, product, and service names are the property of their respective owners.

Contact:

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