It does, although why not just burn straight to CD? I'm assuming here that you either have no CD-writing software, or are using one of the component CD burners like the Phillips unit.
Some mini discs and sound cards have a digital line in\out, which is a coaxial-type line, not an optical (fiber-optic) line - so just be wary of the difference. The easy way to tell is that (on the rack unit MD recorders at least) the optical connection has a weird looking squeare plug, and the coaxial digital i/o is an RCA socket that is generally orange (as distinct from red/white for analog audio and yellow for video)
I'm not sure which sound cards have the required digital outputs - I don't actually own a high end sound card (yet), although the SoundBlaster Live 128, which is a reasonable card for games 'n' stuff (and hasn't been too bad doing audio recording) does have some sort of digital output. Looking at it, it would appear to be a coaxial type, except with a 3.5mm (1/8") jack instead of the more common RCA type sockets.
Cheers