e.Digital Enters Into New Cross License and Settlement Agreement

SAN DIEGO, CA--(MARKET WIRE)--Mar 17, 2009 -- e.Digital Corporation (OTC BB:EDIG.OB - News), a leading technology innovator of dedicated portable entertainment systems and patented flash memory-related technology, announced today its fifth Flash-R(TM) patent portfolio license and settlement agreement. Under the terms of the confidential agreement, e.Digital received a one-time licensing fee and cross licensed certain patents from the undisclosed company.

e.Digital's Flash-R patent portfolio covers certain aspects of the use of flash memory in the large and growing portable electronic products market. The Company introduced 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, PDAs and other popular devices.

In September 2007 and March 2008, the Company filed its first round of Flash-R portfolio patent infringement litigation against eight defendants. e.Digital has licensed and settled five of the cases and expects further legal and licensing activity this month and throughout the year.

Fred Falk, president and CEO of e.Digital, commented, "Our growing Flash-R-related revenues and intellectual property assets are opening doors to partnerships that we believe will enable us to expand our eVU(TM) dedicated portable entertainment system business in IFE, and into the medical industry and other segments of the travel and leisure market."

About e.Digital Corporation: e.Digital is a leading innovator of dedicated portable entertainment systems through its proprietary eVU(TM) product line. e.Digital also owns and is pursuing the monetization of its Flash-R(TM) 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 and eVU, please visit: www.edigital.com.

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