EDIG owns the very valuable Flash-R™ portfolio of patents

e.Digital Corp. (OTC: EDIG) has been making an explosive move up in recent months from a start point of around $0.03 in August the stock has seen recent highs of $0.16 per share. When EDIG gets hot investors need to take notice as this stock has a history of highly explosive moves; Speculators who were around in the late 90's and into 2000 remember the legendary run that EDIG made from pennies to highs of $24 per share. In 2004 EDIG caught fire again running from just over a dime to highs well over $0.60.

e.Digital through its wholly-owned subsidiary under the same owns a valuable portfolio of intellectual property including the Flash-R™ portfolio of patents related to the use of flash memory in portable devices. EDIG also markets a eVU® mobile entertainment system for the travel industry.

It is e.Digital's Flash-R(TM) patent portfolio covering the use of flash memory technologies that puts this Company on the map. The Flash-R(TM) portfolio of flash memory-related patents are essential to many portable consumer electronic products and used to be worth in the range of $5 to $10 million in annual revenues for EDIG. Due to a reexamination of these patents EDIG has been unable to license the Flash-R(TM and the Companies once highly lucrative revenue stream dried up completely.

The Price of EDIG stock which dropped to lows around $0.03 during the reexamination is on the rise as the reexamination of the Company's '774 and '737 patents has been favorably concluded and e.Digital is once again free to license its Flash-R(TM) patent portfolio.

Fred Falk, President and CEO of e.Digital recently commented "Now that the reexamination of the Company's '774 and '737 patents has been favorably concluded, we are aggressively pursuing Flash-R(TM) patent monetization activities,"

Since September e.Digital and their autorneys Handal & Associates have filed a number of patent infringement lawsuits. In the complaints, e.Digital asserts that products made and sold by the defendant companies infringe the Company's U.S. patents covering the use of flash memory technologies. These patents are part of e.Digital's Flash-R(TM) patent portfolio.

Defendants include J & R Electronics Inc, Sweetwater Sound, Inc., Kraft Music, Ltd, Sec Tech Enterprises, Creative Technology, Ltd., GPX Inc., DPI, Inc. dba Digital Products International, iriver, Ltd., iriver, Inc., Osram Sylvania, Inc., Shaghal, Ltd. dba Ematic, Mach Speed Technologies, LLC, and Woodman Labs, Inc. dba GoPro, and distributers including Sears Holdings Corporation, Sears, Roebuck and Co.,Kmart Corporation, Toys "R" Us, Inc., Buy.Com, Inc., Newegg, Inc., Best Buy Stores, L.P, Best Buy.Com LLC, Target Corporation, Sport Chalet, Inc, Quicksilver, Inc, Recreational Equipment, Inc. dba REI and Hastings Internet, Inc.

Conclusion: e.Digital owns a very valuable patent portfolio covering the use of flash memory technologies that is utilized and distributed by many of the biggest names in Retail. Now that the reexamination of the Company's '774 and '737 patents has been favorably concluded EDIG is aggressively pursuing Flash-R(TM) patent monetization activities. EDIG has seen some very important developments in recent months and it looks as this will continue. The Company has close to $3 million in the treasury and little short term debt leaving a healthy budget for their patent infringement lawsuits. While the stock has already seen significant gains in recent months EDIG still trades fairly close to its historical lows and boasts a loyal shareholder base that swears this one goes way higher.

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