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Message: NEWS...Digecor

NEWS...Digecor

posted on Apr 06, 2009 09:18AM


FOR IMMEDIATE
RELEASE

e.DIGITAL PROVIDES further LITIGATION UPDATE


(SAN DIEGO, CA, -- April 6, 2009) -- e.Digital Corporation (OTC:
EDIG), a leading technology innovator of dedicated portable
entertainment systems and patented flash memory-related
technology, today summarized further court action related to
business litigation between the Company and digEcor, Inc.


On April 2, 2009, the U.S. District Court for the District of
Utah issued a ruling on most of the remaining issues in the
Cross-Motions for Summary Judgment pending in the lawsuit brought
by digEcor against e.Digital.


The Court first denied digEcor's motion for judgment on its
claim for breach of the implied covenant of good faith and fair
dealing, ruling that "as a matter of law e.Digital had no implied
duty to refrain from competing with digEcor while the digEplayer
5500s were not yet delivered."


The Court then ruled on e.Digital's motion for summary judgment
to dismiss digEcor's three claims for unfair competition. The
Court denied the motion as to two of those claims, but granted it
on one, dismissing digEcor's claim for unfair competition under a
Utah State law.


Finally, the Court denied digEcor's motion for judgment on
e.Digital's two affirmative counterclaims. As a result of this
ruling, e.Digital maintains its claims against digEcor for
defamation and tortious interference with economic relations, and
will attempt to prove these claims at trial. The Court also
denied all of digEcor's motions to strike various e.Digital
declarations and submissions.The Court is still considering the
question of whether digEcor's alleged damages in its claim for
breach of the Digital Rights Management Agreement between the
parties are prohibited, or are limited to $25,000, under a remedy
limitation provision in that agreement. The Court has requested
additional briefing on that issue. The case is scheduled for
trial beginning May 4, 2009 on all remaining issues.


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.


Safe Harbor statement under the Private Securities Litigation
Reform of 1995: All statements made in this document, other than
statements of historical fact, are forward-looking statements
within the meaning of Section 21E of the Securities Exchange Act.
You should not place undue reliance on these statements. We base
these statements on particular assumptions that we have made in
light of our industry experience, the stage of product and market
development, expected future developments and other factors that
we believe are appropriate under the circumstances. These
forward-looking statements are based on the then-current
expectations, beliefs, assumptions, estimates and forecasts about
the businesses of the Company and the industries and markets in
which the Company operates. Actual outcomes and results may
differ materially from what is expressed or implied by the
forward-looking statements. More information about potential
factors that could affect the Company can be found in its most
recent Form 10-K, Form 10-Q and other reports and statements
filed with the Securities and Exchange Commission ("SEC").
e.Digital Corporation disclaims any intent or obligation to
update these or any forward-looking statements, except as
otherwise specifically stated by it.


CONTACT: e.Digital Corporation: Robert Putnam, (858) 304-3016
ext. 205, rputnam@edigital.com




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