e.Digital Corporation (fka EDIG)

[LGJ]

*** Shareholder Alert ***
E.DIGITAL CORPORATION LICENSES ODYSSEY 1000™
PERSONAL DIGITAL JUKEBOX PLATFORM TO ASIAN OEM

Large Asian OEM to Manufacture Branded
1.8” HDD-Based Version of Odyssey 1000

(San Diego, CA – September 16, 2003) – e.Digital Corporation (OTC: EDIG) today announced that a multi-billion dollar Asian OEM (original equipment manufacturer) has signed a royalty-bearing license agreement to manufacture e.Digital’s Odyssey 1000 Personal Digital Jukebox platform for OEM branding. Products manufactured under this agreement are scheduled to reach consumers later this year. Because the Asian OEM manufactures products for many global brands under confidentiality agreements, the name of the licensee is subject to non-disclosure.

Through the agreement, the Asian OEM will provide manufacturing services of a 1.8” version of the Odyssey 1000 platform for specific OEM branding while e.Digital will supply the technology, software, firmware and upgrades to the Odyssey 1000 platform.

“This Asian company exemplifies quality, innovation and integrity,” said Fred Falk, president and chief executive officer of e.Digital. “We are very pleased to have them onboard as another OEM licensee of our Odyssey 1000 product platform. We expect to announce further details as this 1.8” version of our Odyssey 1000 platform is branded and introduced to consumers later this year.”

The Odyssey 1000 platform is the basis for a sophisticated, hard drive-based portable jukebox featuring VoiceNav® voice navigation, built in voice recorder, FM tuner, mass storage device status and a USB 2.0 connection.

About e.Digital Corporation
e.Digital Corporation specializes in technology innovation and applications integration through engineering partnerships with leading original equipment manufacturers (OEMs) designing, licensing, branding, and manufacturing digital audio, video and wireless products and technology platforms. The Company also sells its Odyssey 1000™ digital jukebox through selected e-tail and retail outlets. Applications for e.Digital's technology include delivery and management of open and secure digital media with a focus on music, voice, wireless and video players/recorders, automotive infotainment and telematics systems, 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™ file management system to custom software and hardware development, industrial design, and manufacturing services. For more information on the company, please visit www.edigital.com.