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E.Digital Delivers Opening eVU(TM) Order to Austrian Airlines

September 3, 2008

e.Digital Corporation (OTCBB: EDIG), a leading technology innovator of dedicated portable entertainment systems and patented flash memory-related technology, announced today the delivery of an opening eVU(TM) portable in-flight entertainment (IFE) systems and services order to Austrian Airlines. To date, over 30 airlines have made dedicated portable systems powered by e.Digital technology their in-flight entertainment choice.

Headquartered in Vienna, Austrian Airlines is the flag carrier airline for Austria flying to 130 destinations worldwide. Austrian Airlines recently received first place honors in two categories of the 2008 World Airline Awards.

e.Digital’s enhanced studio-approved eVU portable entertainment system features a multi-language customizable passenger-friendly interface and an industry-leading 20+ hours of continuous video playback from a single battery charge. eVU is available in either 7″ or 8″ high resolution LCD screens with 80 GB to 200 GB of rugged and reliable storage for many hours of movies, television shows, music, specialty programming and games. eVU is the smallest and lightest dedicated long play portable IFE product available today and integrates the latest in battery safety features through its removable “Smart” rechargeable high capacity battery pack.

“We welcome Austrian Airlines to the growing number of airlines who have selected eVU as their dedicated portable IFE system of choice,” commented Will Blakeley, president of e.Digital. “eVU provides airlines and their passengers the best dedicated portable IFE experience in the sky today.”

About e.Digital Corporation: e.Digital is a leading innovator of dedicated portable in-flight entertainment systems. More than 30 airlines have made dedicated portable systems powered by e.Digital technology their in-flight entertainment choice. e.Digital also owns and is pursuing the monetization of its Flash-R(TM) portfolio of flash memory-related patents. e.Digital was the first company to employ and patent important aspects of the use of removable flash memory in portable recording devices. For more information about e.Digital and eVU, please visit: www.edigital.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 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. 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.

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

SOURCE: e.Digital Corporation




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