FOR IMMEDIATE RELEASE

e.DIGITAL ANNOUNCEs License and
Settlement agreement with Hoya Corporation and subsidiary, PENTAX OF AMERICA

(SAN DIEGO, CA, – June 20, 2011) – 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 license and settlement agreement with Hoya Corporation and Hoya Corporation USA (Hoya) which includes Hoya subsidiary, Pentax of America, Inc. (Pentax). Under the terms of the confidential agreement, Hoya and Pentax jointly obtained a license and release on the Company’s Flash-R™ patent portfolio and paid e.Digital a one-time licensing fee.

e.Digital’s Flash-R patent portfolio is comprised of fundamental technology related to 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.

"We are pleased to report in our first fiscal quarter of 2012 the 12th Flash-R portfolio related licensing and settlement agreement,” said Fred Falk, president and CEO of e.Digital. Hoya joins the growing list of Flash-R patent portfolio licensees, including Samsung, Olympus and other world recognized manufacturing companies.

About e.Digital Corporation: For more than 20 years, e.Digital's ideas and inventions have impacted the evolution of consumer products. Today, e.Digital innovations, including its Flash-R™ portfolio of flash memory-related patents, are essential to many portable consumer electronic products. The Company pioneered dedicated portable in-flight entertainment systems and more than 30 airlines have made e.Digital powered products their in-flight entertainment choice. For more information about e.Digital, please visit: www.edigital.com.


Safe Harbor statement under the Private Securities Litigation Reform of 1995: All statements made in this document, other than statements of historical fact, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act. You should not place undue reliance on these statements. We base these statements on particular assumptions that we have made in light of our industry experience, the stage of product and market development, expected future developments and other factors that we believe are appropriate under the circumstances. These forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the businesses of the Company and the industries and markets in which the Company operates. Actual outcomes and results may differ materially from what is expressed or implied by the forward-looking statements. More information about potential factors that could affect the Company can be found in its most recent Form 10-K, Form 10-Q and other reports and statements filed with the Securities and Exchange Commission (“SEC”). e.Digital Corporation disclaims any intent or obligation to update these or any forward-looking statements, except as otherwise specifically stated by it.

CONTACT: e.Digital Corporation: Investor Relations, (858) 304-3016 ext. 205, ir@edigital.com