COURT RULES IN FAVOR OF E.DIGITAL

(SAN DIEGO, CA, – September 14, 2009) – e.Digital Corporation (OTC: EDIG), a leading technology innovator of dedicated portable entertainment systems and patented flash memory-related technology, announced today that the United States District Court for the District of Utah (the “Court”) ruled in favor of e.Digital on all remaining claims in the digEcor v. e.Digital litigation.

The Court issued its Findings of Fact and Conclusions of Law late last week in the lawsuit brought by digEcor against e.Digital. The Court’s findings and conclusions were based upon evidence presented at the May 2009 trial, as well as the post-trial briefings and arguments of the parties. In its decision, the Court dismissed all remaining digEcor claims with prejudice, ordering that digEcor recover no damages or injunctive relief. Specifically, the Court dismissed digEcor's claims for breach of a November 2005 Purchase Order between the parties, breach of a digital rights management (“DRM”) Agreement, and breach of an October 22, 2002 Agreement. All claims were dismissed "with prejudice and on the merits." The Court also declined to grant digEcor any injunctive relief in connection with the DRM-related claim.

To read the full findings of the Court, please click here:

http://www.edigital.com/docs/Verdict.pdf