e.DIGITAL REPORTS SECOND QUARTER RESULTS

(SAN DIEGO, CA, – November 12, 2014) – e.Digital Corporation (OTCQB: EDIG), a long standing source of innovation and future-defining patented technologies, today announced results for its second quarter of fiscal year 2015, ended September 30, 2014.

Recent Highlights:

• Continued Flash-R™ licensing success – e.Digital entered into several new licensing agreements arising from lawsuits it filed. Responsible manufacturers and suppliers of Flash memory storage devices have settled these cases in recognition of the Company’s intellectual property rights. The Company continues to defend its rights under its Flash-R™ patent portfolio with cases pending against several notable companies including SanDisk, GoPro, Micron, and Seagate.

• Collateral Estoppel Appeal – e.Digital continued defending its intellectual property rights with oral arguments before the United States Court of Appeals for the Federal Circuit in Washington D.C. on October 7, 2014. All briefing and arguments have been completed and the Company is awaiting a decision. The Company is seeking to overturn a determination that prohibits it from rearguing construction of claim terms of the Company’s US patent No. 5,491,774 (“the ‘774 patent”) and US patent No. 5,839,108 (“the ‘108 patent”). A ruling in the Company’s favor would allow e.Digital to assert and argue to the San Diego District Court, constructions of claim terms from the ‘774 and ‘108 patents different than those asserted in the Colorado District Court in 2010. In the Company’s view, reversing the collateral estoppel determination could have a favorable impact on unresolved cases in which the ‘774 and ‘108 patents are asserted.

• Nunchi® Licensing – The Company, in its continuing effort to license its unique and ground breaking technologies, has filed a multi-patent infringement lawsuit against Dropcam, Inc. over its system for using various devices to communicate with and monitor remote locations. The lawsuit involves e.Digital’s Nunchi® portfolio, which presently consists of six granted U.S. patents and four pending continuation applications. Initially filed in the Southern District Court, the case has recently been transferred to the Northern District of California. In addition, the Company has identified other potential infringers in the “connected” home security space and other areas of the industry and is considering its options to bring them into compliance.

• microSignet™ technology – The Company has been actively pursuing development of applications for its microSignet™ technology, which involves creating a heightened layer of security for electronic devices. e.Digital believes that significant opportunities exist for this technology in the rapidly developing and changing data security market. In addition to offering licensing opportunities, the Company is seeking partnerships with semiconductor companies and established online security providers to bring microSignet™ to market.

• New Technology – The Company’s intellectual properties and engineering teams are in the process of developing other technologies to enhance privacy in communications and data exchange between users of connected communication devices over public networks. e.Digital continues to dedicate itself to innovation and looks forward to having an impact in this field.


Second Quarter Fiscal 2014 Financial Summary:
The Company reported a net loss of $172,856 or $(0.00) per share, for the second quarter of fiscal 2015 compared to a net loss of $410,113 or $(0.00) per share for the prior year’s second quarter. For the second quarter of fiscal 2015 revenues totaled $394,502 compared to $101,729 for the second quarter of the prior year. The most recent quarter included $340,034 of patent license revenues compared to $34,725 for the second quarter of the prior year. Operating expenses increased to $567,358 from $511,842 for the prior year’s comparable quarter primarily due to increased patent-related legal costs.

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: This press release includes forward-looking information and statements. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding assumptions, projections, expectations, targets, intentions or beliefs about future events that are based on management's belief, as well as assumptions made by, and information currently available to, management. While the Company believes that expectations are based upon reasonable assumptions, there can be no assurances that goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. Some of these factors include the substantial uncertainties inherent in pursuing patent enforcement activities including, but not limited to the risks and costs of litigation and support activities, the timing and amount of settlements/licenses if any, the acceptance of existing and future products and technologies, the difficulty of commercializing and protecting new technology such as the Company's Nunchi, microSignet and other technologies, the impact of competitive products, technologies and pricing, general business and economic conditions, and other factors detailed in the Company's Annual Report on Form 10-K and other periodic reports filed with the SEC. Except as required by law, the Company specifically disclaims any obligation to update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.

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