e.DIGITAL ANNOUNCEs Licensing and

Settlement agreement with Olympus

(SAN DIEGO, CA, – April 1, 2009) – e.Digital Corporation (OTC: EDIG), a leading technology innovator of dedicated portable entertainment systems and patented flash memory-related technology, announced today that it has entered into a licensing and settlement agreement with Olympus. Under the terms of the confidential agreement, Olympus obtained a license and release on all e.Digital foreign and domestic patent rights, including the Company’s Flash-R™ patent portfolio, and e.Digital received a one-time licensing fee.

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.

"We’re pleased to have ended our fiscal 2009 favorably licensing and settling six of the eight cases that initiated our efforts to monetize our important IP portfolio,” remarked Robert Putnam, senior vice president of e.Digital Corporation. “We look forward to further legal and licensing activity this fiscal year.”