e.Digital Corp. Shelf Registration Statement Approved By SEC

Business Wire, April 29, 2002

Business Editors & High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--April 29, 2002

e.Digital Corp. (OTCBB:EDIG) announced today that it has received final approval from the Securities and Exchange Commission on the Form S-3 Shelf Registration Statement filed on Feb. 6, 2002.

The company also announced that it has further renegotiated payment terms of the Jan. 18, 2002, 5% SP Note currently scheduled to mature on May 2, 2002. The renegotiated terms extend the maturity date six months to Oct. 29, 2002.

Ran Furman, chief financial officer of e.Digital, stated, "The successful completion and approval of the Shelf Registration Statement, along with the new payment terms of the Promissory Note, give us sufficient working capital to aggressively execute our business plan. This includes expanded marketing and retail distribution of our consumer electronics products, continuing development of new products for our OEM licensees and customers, and possible acquisitions of companies or technologies whose assets complement and enhance our business."

About e.Digital

e.Digital Corp. 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 players/recorders and portable digital voice 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, visit www.edig.com. To shop at the e.Digital online store, visit www.edigital-store.com.

Safe Harbor statement under the Private Securities Litigation Reform of 1995: This document contains forward-looking statements relating to future performance, technology and product development that may affect future results and the future viability of the company. Actual results could be affected or differ materially from those projected in the forward-looking statements as a result of risks and uncertainties, including future products and results, technological shifts, potential technical difficulties that could delay new products, competition, general economic factors, and conditions in the markets in which the company operates, pricing pressures, the uncertainty of market acceptance of new products and services by OEM's and end-user customers, and other factors identified and discussed in the company's most recent filings with the Securities and Exchange Commission. These forward-looking statements are based on information and management's expectations as of the date hereof. Future results may differ materially from the company's current expectations.