(SAN DIEGO, CA, – October 22, 2009) – e.Digital Corporation (OTC: EDIG), a leading innovator of dedicated portable entertainment systems and patented flash memory-related technology, announced today that it has entered into a cross licensing and settlement agreement with Samsung Electronics Co., Ltd. (Samsung). Under the terms of the confidential agreement, Samsung obtained a license and release on e.Digital’s foreign and domestic patent rights, including the Company’s Flash-R™ patent portfolio, and e.Digital obtained a license and release on certain Samsung patents. e.Digital also 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.