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e.DIGITAL REPORTS FISCAL YEAR 2012 RESULTS

(SAN DIEGO, CA, – June 22, 2012) – e.Digital Corporation (OTC: EDIG),

a leading innovator of dedicated portable entertainment systems and patented flash memory-related technology, today announced revenues of $4.7 million for its fiscal year ended March 31, 2012. Revenues for fiscal year 2012 included $4.1 million in licensing fees from the Company’s Flash-R™ patent portfolio and $0.6 million in eVU™ portable in flight entertainment (IFE) sales and services. For the prior year, licensing revenue was $0.2 million and eVU revenues were $1.1 million. During fiscal 2012 the Company licensed eight companies from the second round of patent enforcement and one additional company outside of the litigation and in the prior year licensed one company from the second round.

Gross profit for fiscal year 2012 was $2.9 million or 62% of revenues, compared to $0.5 million or 39% of revenues for the prior year. The increase in gross profit is primarily the result of an increase in higher margin patent license revenue.

Operating expenses for fiscal year 2012 were $1.6 million, increased slightly from $1.59 million in fiscal year 2011. The increase is primarily as a result of increased legal and professional fees related to the patent reexamination.

Income attributable to common stockholders for fiscal year 2012 was $1.2 million or $(0.00) per diluted share, compared to the net loss attributable to common stockholders of $1.1 million or $(0.00) per diluted share for fiscal year 2011.

“Fiscal year 2012 was a challenging year for e.Digital,” commented Fred Falk, president and CEO of e.Digital. Although the Company reported a profitable year, significant effort was focused responding to events related to Flash-R patent portfolio monetization activities. An unfavorable Markman ruling in the second round of Flash-R litigation in the district of Colorado, limited the Company’s overall licensing revenue potential for that round. In addition, during the year two key Flash-R patents, US 5,491,774 (the ‘774 patent) & US 5,742,737 (the ‘737 patent), were accepted for reexamination by the United States Patent and Trademark Office (USPTO). The Company responded to the first ‘774 office action which was a rejection of certain claims by the patent office. In an effort to overcome the rejection, the Company filed a request to amend certain claim elements in the ‘774 patent, that was approved by the USPTO, thereby successfully ending the ‘774 reexamination. The Company expects, but cannot assure, that the amendments will help clarify and strengthen its ability to enforce infringement of the ‘774. With regard to the ‘737 patent, the Company filed a response to a USPTO office action and subsequently received a final rejection. As previously reported, the Company intends to file a supplemental declaration to try to overcome the rejection.

“We continued to make progress in the development and marketing of our Nunchi technology,” added Falk. The Company reported that it filed six patent applications related to Nunchi. They are:

Application No. Filing Date

12/891,875 09-28-2010

13/047,163 03-14-2011

13/047,206 03-14-2011

13/047,290 03-14-2011

13/047,306 03-14-2011

13/047,420 03-14-2011

The Company responded to USPTO office actions related to the applications and is hopeful that some patents will be granted this year. Falk concluded, “We continue to have licensing and partnering related discussions with wireless communications providers and hardware manufacturers and continuing Flash-R patent activities.”