Before there were any settlements done, this is what EDIG had to say.

And now knowing what actually happened, it is apparent EDIG has come a long way in year one of its patent licensing efforts.

They have yet to speak regarding year 2.

e.DIGITAL PROVIDES OVERVIEW OF PATENT LICENSING EFFORTS

AND CURRENT IP LITIGATION

(SAN DIEGO, CA, – June 20, 2008) – e.Digital Corporation (OTC: EDIG), a leading technology innovator of dedicated portable entertainment systems and patented flash memory-related technology today provided an overview of its patent licensing efforts and current intellectual property (IP) litigation.

The Company’s Flash-R™ patent portfolio covers certain aspects of the use of flash memory, addressing today's large and growing portable electronic products market. In 1993, the Company unveiled and marketed the first digital voice recorder with removable flash memory. In 1996, the Company produced and marketed the first digital voice recorder interface for downloading and managing voice recordings on the personal computer. The Flash-R portfolio is protected through the years 2014 – 2016 and includes the following U.S. patents:

 US5491774: Handheld record and playback device with flash memory
 US5742737: Method for recording voice messages on flash memory in a hand held recorder
 US5787445: Operating system including improved file management for use in devices utilizing flash memory as main memory
 US5839108: Flash memory file system in a handheld record and playback device
 US5842170: Method for editing in hand held recorder

"Digital recording on to flash memory has become a standard in portable electronic products,” said Robert Putnam, senior vice president of e.Digital Corporation. Putnam initiated and oversees e.Digital’s IP monetization efforts. “e.Digital created and patented important intellectual property in the use and utilization of flash memory in portable electronics products that we believe is being widely used in cell phones, cameras, camcorders, PDA’s and other popular devices without our consent."

“We consider our Flash-R patent portfolio essentialto many consumer electronic products and believe the numbers of companies infringing our portfolio are large with annual sales of what we believe are infringing products in the many billions of dollars,” continued Putnam.

The Company is pursuing patent enforcement claims vigorously but such efforts are in the early stage and there is no assurance of future license fees or recovery. Patent enforcement involves a number of risks as more fully described in the Company’s most recent Form 10-K.

In September 2007 the Company commenced enforcement action with respect to the patent portfolio by filing a complaint in the U.S. District Court for the Eastern District of Texas against Vivitar, a wholly-owned subsidiary of Syntax-Brillian, asserting that certain of their products infringe four of e.Digital’s U.S. patents covering the use of flash memory technology. In March 2008, e.Digital filed a similar suit in the same jurisdiction against Avid Technology, Casio America, LG Electronics USA, Nikon, Olympus America, Samsung Electronics America, and Sanyo North America.

“Our strategy is to license the use of the Flash-R portfolio,” added Putnam. “Through our legal representatives, we are engaged in licensing discussions and efforts with infringing parties. We are committed to recognizing the value of our patent portfolio and where and as required, we intend to enforce our rights through infringement litigation.”