e.DIGITAL REPORTS FISCAL YEAR 2011 RESULTS

(SAN DIEGO, CA, – June 21, 2011) – e.Digital Corporation (OTC: EDIG),

a leading innovator of dedicated portable entertainment systems and patented flash memory-related technology, today announced revenues of $1.3 million for its fiscal year ended March 31, 2011. Revenues for fiscal year 2011 included $0.2 million in licensing fees from the Company’s Flash-R™ patent portfolio and $1.1 million in eVU™ portable in flight entertainment (IFE) sales and services. For the prior year, licensing revenue was $1.6 million and eVU revenues were $954,000. During fiscal 2011 the Company licensed one company from the second round of patent enforcement and in the prior year licensed one final company from the first round and three companies from the second round. In June 2011 the Company licensed one additional company.

Gross profit for fiscal year 2011 was $0.5 million or 39% of revenues, compared to $1.3 million or 51% of revenues for the prior year. The decrease in gross profit resulted primarily from the reduction in higher margin patent license revenue.

Operating expenses for fiscal year 2011 were $1.6 million, compared to $2.2 million in fiscal year 2010. The decrease resulted primarily from decreased staffing costs and reduced professional fees.

Loss attributable to common stockholders for fiscal year 2011 was $1.1 million or $(0.00) per diluted share, compared to loss attributable to common stockholders of $985,000 or $(0.00) per diluted share for fiscal year 2010.

“During fiscal 2011 we focused significant efforts related to our second round of patent enforcement including discovery and a Markman patent claims construction hearing held in January,” commented Fred Falk, president and CEO of e.Digital. “We started the current year with a new licensee resulting from these efforts and expect additional licensing revenues this year. Two of our patents are being reexamined and favorable determinations from Markman rulings and reexamination, although uncertain, could bolster future licensing. Our IFE business continues to be flat and we expect future results to depend primarily on licensing our Flash-R portfolio and exploiting new technologies currently in development.”