e.Digital Corporation (fka EDIG)

[milplease]

FOR IMMEDIATE RELEASE

E.DIGITAL ANNOUNCES EXPANDED ORDERS OF APS' DIGEPLAYER(tm)
BY ALASKA AIRLINES

Successful 'Beta' Test Culminates in Alaska Airlines'
Adoption of the digEplayer 5500(tm)

(San Diego, CA - February 10, 2004) - e.Digital Corporation (OTC: EDIG) today announced expanded orders of APS' digEplayer(tm) by Alaska Airlines. After the successful 'beta' test of APS' e.Digital powered digEplayer 5500, Alaska has agreed to purchase up to 6,000 additional units. e.Digital expects to realize several million dollars in revenue over the next five years from the APS/Alaska Airlines orders through initial sales of the units, refurbishment fees and other services.

APS' digEplayer 5500 will continue to provide portable in-flight entertainment (IFE) to Alaska Airlines passengers for at least the next five years. Customer acceptance and demand, durability, ease of distribution, and quality of picture and sound were cited as the criteria by which the innovative system was selected.

"The successful completion of the "beta" test with Alaska Airlines has been an important validation of our digEplayer 5500. This test also proves that for the first time, carriers can have a full video on demand (VOD) system without the expensive retrofitting of aircraft," noted Bill Boyer, president and CEO of APS. "e.Digital's technology has surpassed the rigorous testing of Alaska and it's passengers. With logistics support from Rockwell Collins and premium content from Twentieth Century Fox, and others, we are well positioned to meet the needs of Alaska and its passengers."

"Alaska Airlines' endorsement of APS' digEplayer clearly affirms the value of our proprietary personal video technology platform," added Fred Falk, e.Digital's president and CEO. "APS and e.Digital are actively pursuing orders with additional airlines and opportunities in other markets."

APS' digEplayer offers passengers fresh content selections, including first run movies not yet available on video, classic films, television programming, music and other entertainment options.

About e.Digital Corporation: e.Digital Corporation partners with leading original equipment manufacturers (OEMs) licensing, designing and providing manufacturing services for OEM-branded digital video, digital audio and wireless products based on the Company's proprietary MicroOS(tm)-enabled technology platforms. e.Digital specializes in the delivery and management of open and secure digital content through it's Personal Video, Personal Audio, Automotive, and Wireless technology platforms. e.Digital's services include the licensing of the Company's MicroOS(tm), custom software and hardware development, industrial design, and manufacturing services through the Company's manufacturing partners. For more information about e.Digital and its technology platforms, please visit the company website at www.edigital.com.

About APS: Tacoma, Washington base and privately owned; APS is the airline industry's leading innovator in in-flight entertainment systems. Using the latest technology licensed from e.Digital and DivX, the digEplayer 5500(tm) offers superior audio and video quality. For more information about the digEplayer 5500(tm), contact APS at [phone] or visit www.digeplayer.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. 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 Corporation with the Securities and Exchange Commission ("SEC"). e.Digital Corporation disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated by it.

Editors Note: digEplayer 5500 is the trademark of APS, Inc. MicroOS is the registered trademark of e.Digital. All other company, product, and service names are the property of their respective owners.

CONTACT:
e.Digital Corporation: Robert Putnam, [phone], [e-mail]


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