As a new medium for knowledge diffusion, E-Journal is expected to be a general type of scholarly communication. However, the techno - economic problems have hindered the advancement of the E-Journal. For the technical aspects, there are problems such as the standardization of document format, automatization of the document preparation, forward and backward link between documents. Also there are necessities for the support of the information infrastructure of digital library and information superhighway. For the economic domain, reengineering of total publishing cycle is considered and the new paradigm of peer review is analyzed. We pointed out that the main difficulties in the diffusion of E-Journal are on the promotion of service and technological advance, not the price and marketing strategy.