SOURCE: e.Digital Corporation

May 15, 2007 08:30 ET

e.Digital Receives Over $1 Million eVU™ Portable IFE Systems Order From Malaysia Airlines

Company Enters Into a Supply Agreement With Award-Winning Asian Air Carrier

SAN DIEGO, CA -- (MARKET WIRE) -- May 15, 2007 -- e.Digital Corporation (OTCBB: EDIG), a proven technology innovator of dedicated portable inflight entertainment (IFE) systems and patented technology in the utilization of flash memory in portable devices, announced today that it has entered into a supply agreement and received an eVU portable entertainment systems order worth over $1 million from Malaysia Airlines. Malaysia Airlines is providing the eVUs to Business Class passengers. The order includes eVU support equipment and on-going services. This order completes the new orders and contracts e.Digital announced on March 29, 2007.

Malaysia Airlines (www.malaysiaairlines.com), the national carrier of Malaysia, is recognized as one of Asia's largest, flying more than 48,000 passengers to over 100 destinations across 6 continents every day. It has established itself as an award-winning airline having received more than 100 awards in the last 10 years.

e.Digital's next generation studio-approved eVU portable entertainment system features a customizable passenger-friendly interface and an industry-leading 14 hours of continuous video playback from a single battery charge. eVU is available in either 7" or 8" high resolution LCD screen with 40 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 are delighted to introduce this portable entertainment system for our North and South Asia routes," said Malaysia Airlines Commercial Director, Rashid Khan. "The enhancement of the IFE complements our award-winning cabin service to make flying with Malaysia Airlines an enjoyable experience."

"We're proud that our proprietary 'best in class' eVU portable entertainment system has been selected by Malaysia Airlines for their business class passengers," said Will Blakeley, president and chief technical officer of e.Digital. "We're delighted to be working directly with Malaysia Airlines and supporting their portable IFE requirements."

About e.Digital Corporation: e.Digital is a provider of secure portable Video on Demand products including its proprietary eVU™ portable entertainment system. e.Digital also owns and is pursuing the monetization of its portfolio of flash memory-related patents. 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.

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