Alaska Airlines First to Offer In-Flight Entertainment Units Powered by e.Digital Technology.

Business Editors/Travel Writers/High-Tech Writers

WAEA Conference and Exhibition

SAN DIEGO--(BUSINESS WIRE)--Sept. 10, 2003

Alaska Airlines, APS and e.Digital Partner to Bring digEplayer(TM)

to Forefront of In-Flight Entertainment 

e.Digital Corp. (OTCBB:EDIG) today announced that APS's digEplayer, designed and developed by e.Digital, will be available to Alaska Airlines passengers beginning in October. digEplayer is a portable Video On Demand (VOD) entertainment technology designed specifically to provide multiple in-flight entertainment options for passengers without requiring the planes to be taken out of service for retro-fitting.

The digEplayer offers passengers fresh content selections, including first run movies not yet available on video, classic films, television programming, music and other entertainment options. Content is encrypted and the units feature proprietary USB connections and power supplies to create an added measure of copyright protection. Each digEplayer has a seven-inch screen and is pre-programmed with 20-30 movies, sitcoms, cartoons and music.

"We are excited to have our video technology platform coming to market through our partnership and licensing agreement with APS," commented Fred Falk, e.Digital's president and chief executive officer. "With the digEplayer, airlines can outfit an entire fleet with no disruption in service, greater per unit reliability and significantly lower capital expenditures all while providing robust entertainment options for their passengers."

"APS has worked hard to develop a strategy that will satisfy the needs of the passengers as well as the needs of the airlines," noted Bill Boyer, chief executive officer of APS. "e.Digital's technology brings this exciting new entertainment option directly into the hands of Alaska Airlines passengers."

"Offering our customers the latest high technology in-flight entertainment system in the industry is in keeping with our commitment to offer technology that makes flying more satisfying for our customers," said Gregg Saretsky, senior vice president of marketing and planning for Alaska Airlines. "Alaska Airlines is proud to be the first airline to debut this impressive new system."

"Working with Ray Henson, vice president and chief technology officer of APS, we have customized our video technology platform to be the world's first portable VOD In-Flight Entertainment product," said e.Digital's senior vice president of research and development, Atul Anandpura. "Our engineers have expanded e.Digital's MicroOS(TM) platform to add secure video playback technology through the development of proprietary encryption and hardware."

In a separate agreement, APS recently announced a partnership with Twentieth Century Fox to provide content for the digEplayer units.

APS and e.Digital officially unveiled the digEplayer at booth 1601 at this year's World Airline Entertainment Association (WAEA) Conference and Exhibition in Seattle which began September 9th.

About e.Digital Corp.

e.Digital Corp. 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(TM) 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(TM) file management system to custom software and hardware development, industrial design, and manufacturing services. For more information on the company, 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. 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. Factors that may affect the company's businesses, financial condition and operating results include future products and results, technological shifts, potential technical difficulties that could delay new products and services, competition, pricing pressures, the uncertainty of market acceptance of new products and services by OEM's and end-user customers, effects of changes in the economy, consumer spending, the ability of the company to maintain relationships with strategic partners and suppliers, the ability of the company to timely and successfully develop, maintain and protect its technology and product and service offerings and execute operationally, the ability of the company to attract corporate financing and the ability of the company to attract and retain qualified personnel. 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 with the Securities and Exchange Commission ("SEC"). e.Digital disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated by it.

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