e.DIGITAL announces first Flash-R™ Patent portfolio license and
settlement agreement



Company Also Cross-Licenses Multimedia-Related Patents



(SAN DIEGO, CA, -- September 25, 2008) -- e.Digital Corporation
(OTC: EDIG), a leading technology innovator of dedicated
portable entertainment systems and patented flash memory-related
technology announced today that a major electronics manufacturer
has purchased the first license for its Flash-R™ patent
portfolio. Under the terms of the confidential licensing and
settlement agreement, e.Digital is receiving a one-time
licensing fee and cross-license rights to certain patents
covering multimedia-related products.



e.Digital's Flash-R patent portfolio covers certain aspects of
the use of flash memory, addressing today's large and growing
portable electronics products market. The Company unveiled the
first portable recorder with removable flash memory in 1993 and
believes its patent portfolio to be essential to many consumer
electronics products that utilize flash memory including cell
phones, digital cameras, camcorders, PDA's and other popular
devices. In September 2007 and March 2008, the Company filed its
first Flash-R portfolio patent infringement litigation against
eight defendants.



"We are very pleased to have entered into what we believe will
be the first of many Flash-R patent portfolio licensing
agreements," said Robert Putnam, senior vice president of
e.Digital Corporation.



About e.Digital Corporation: e.Digital is a leading innovator
of dedicated portable entertainment systems. e.Digital also owns
and is pursuing the monetization of its Flash-R™ portfolio of
flash memory-related patents. e.Digital was the first company to
employ and patent important aspects of the use of removable flash
memory in portable recording devices. For more information about
e.Digital, please visit: www.edigital.com.