FOR IMMEDIATE RELEASE

e.DIGITAL ANNOUNCES FIRST QUARTER RESULTS

(SAN DIEGO, CA, – August 9, 2012) – e.Digital Corporation (OTCQB: EDIG), a leading innovator of dedicated portable entertainment systems and patented flash memory-related technology, today reported financial results for its first quarter of fiscal 2013 ended June 30, 2012.

The Company reported a net loss of $332,983 or $(0.00) per share, for the first quarter of fiscal 2013 compared to a net income of $731,237 or $0.00 per share for the prior year’s first quarter. For the first quarter of fiscal 2013 revenues totaled $132,546 compared to $2,181,815 for the first quarter of the prior year. The prior year’s first quarter had $2,025,000 of patent license revenue with no comparable revenue in the most recent quarter. Gross profit for the first quarter was $36,079 or 28% of revenues, compared to $1,169,369 or 54% of revenues, for the prior year’s first quarter. Operating expenses declined to $369,062 from $438,132 for the prior year’s comparable quarter primarily due to lack of annual meeting costs of $41,591 spent in prior year and reduced consulting costs.

The reexamination of two of the Company’s patents significantly impacted the Company’s revenue stream. “Now that the ‘774 patent is out of reexamination and our response to the ‘737 final rejection has been filed with the USPTO, we soon expect to have this process behind us and continue Flash-R litigation efforts,” commented Fred Falk, president and CEO of e.Digital.

“To aid in our Nunchi marketing efforts, we have updated our website to better portray the Company’s history and record of innovation, and to communicate to prospective licensees and our shareholders a high level understanding of our Nunchi innovations.”

Falk concluded, “We continue to research and evaluate new opportunities to strengthen our diverse intellectual property portfolio.”

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