Way to go jefother !

e.DIGITAL CORPORATION’S AND OLYMPUS AMERICA INC.’S

Plaintiff e.Digital Corporation (“e.Digital”) and Defendant Olympus America Inc.

(“Olympus”) hereby move for a partial stay of this action, through March 5, 2009, as it relates to

the claims and counter-claims that e.Digital and Olympus have asserted against each other. In

support of this Joint Motion, e.Digital and Olympus state as follows:

1. e.Digital and Olympus have reached a settlement in principal of their dispute and

are negotiating a final settlement agreement. e.Digital and Olympus expect to finalize their

settlement agreement by March 5, 2009 and file a joint dismissal of their claims and counterclaims

against each other by March 31, 2009.

2. In light of the impending dismissal of e.Digital’s and Olympus’s claims and

counter-claims against each other, a stay is necessary to avoid the parties expending unnecessary

costs and resources.

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3. The granting of this Motion will not prejudice any party and is being sought in

good faith and not for the purpose of delay or any other improper purpose.

WHEREFORE, Plaintiff e.Digital Corporation and Defendant Olympus America, Inc.

respectfully request that the Court grant their Joint Motion for Partial Stay and enter the

proposed order attached hereto.

Respectfully and jointly submitted this 3rd day of February, 2009,

JOINT MOTION FOR PARTIAL STAY