Samsung settles!

Plaintiff e.Digital Corporation (“e.Digital”) and Defendant Samsung Electronics

America, Inc. (“Samsung”), the two remaining parties in the above-styled action, hereby move

for a stay, through September 18, 2009, of this action as it relates to the claims and counterclaims

that e.Digital and Samsung have asserted against each other. In support of this Joint

Motion, e.Digital and Samsung state as follows:

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

they are negotiating the final terms of a settlement agreement. e.Digital and Samsung expect to

finalize the settlement agreement and file a joint dismissal of their claims and counter-claims

against each other by September 18, 2009.

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

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

costs and resources.

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 Samsung Electronics

America, Inc. respectfully request that the Court grant their Joint Motion for Stay and enter the

proposed order attached hereto.

Respectfully and jointly submitted this 17th day of August, 2009,