e.DIGITAL ANNOUNCEs Royalty Bearing License and Settlement agreement with Wolverine Data

(SAN DIEGO, CA, – December 10, 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 royalty bearing license and settlement agreement with TIC Computer, Inc. doing business as Wolverine Data (Wolverine). Under the terms of the confidential agreement, Wolverine has agreed to make an undisclosed lump sum payment for past infringing sales and to pay a royalty for any on-going sales of products that practice e.Digital’s U.S. Patent 5,491,774 ('774).

e.Digital’s '774 patent is fundamental to the Company’s Flash-R™ patent portfolio that 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 electronic products that utilize flash memory including cell phones, digital cameras, camcorders, PDAs and other popular devices. To date, eight companies have entered into Flash-R-related license and settlement agreements.

"We are pleased to announce our first royalty bearing '774 license agreement and the first settlement from our recently filed round of infringement actions,” commented Fred Falk, president and CEO of e.Digital. “We expect further legal and licensing activity this fiscal year.”