e.DIGITAL ANNOUNCES LICENSING AND SETTLEMENT AGREEMENT WITH OLYMPUS

(SAN DIEGO, CA, – April 1, 2009) – e.Digital Corporation (OTC: EDIG), a leading technology innovator of dedicated portable entertainment systems and patented flash memory-related technology, announced today that it has entered into a licensing and settlement agreement with Olympus. Under the terms of the confidential agreement, Olympus obtained a license and release on all e.Digital foreign and domestic patent rights, including the Company’s Flash-R™ patent portfolio, and e.Digital received a one-time licensing fee.

This is why we moaned and groaned until after Sammy settled, DM did not the next round and happened 11/2/09.