In this paper, a difference expansion based reversible data hiding approach which achieves the low distortion requirement under the same embedding capacity is proposed. An edge-oriented prediction method and a modified overflow/underflow prevention method are proposed to achieve the requirement. For each pixel, the prediction method uses edge information to get a better predicted value in an attempt to reduce the image distortion. Experimental results have demonstrated that the proposed reversible data hiding method yields lower distortion than several well-known expansion-based reversible data hiding methods.