FOR IMMEDIATE RELEASE


e.DIGITAL REPORTS SECOND QUARTER RESULTS

(SAN DIEGO, CA, – November 12, 2015) – 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 2016, ended September 30, 2015.

Recent Highlights:

• Nunchi® – e.Digital was recently granted a new Nunchi patent. The portfolio now consists of eight patents, one continuation and one continuation in part. The Company has filed patent infringement lawsuits against companies in the connected home security market, including Dropcam, Arcsoft/Simplicam, and Oco, and continues to identify companies that we believe infringe this technology. A Markman hearing was held August 3, 2015 in the United States District Court for the Northern District of California to construe certain asserted claims related to the Dropcam case. That ruling is pending. Nunchi technology encompasses the drawing together of data from fixed or mobile sensors and uniquely using it to recognize, understand and affect interactions.

• microSignet™ – The Company owns intellectual property in the area of data protection, called microSignet. It includes one granted patent and a pending patent continuation. Unlike other security solutions, microSignet utilizes the internal physical characteristics of semiconductors to establish a ‘fingerprint’ which uniquely identifies a given piece of hardware, such as a smart phone or desktop computer, that can be used for device authentication, or to bind valuable data to a particular device. For a more complete description and video demonstration, visit the microSignet webpage. The Company is seeking to license this technology and develop the technology through others.

• Synap™ – During the first quarter of fiscal 2016, the Company filed a new patent application in an exciting new area of secure communications. Originally code-named “Pluto”, the Synap technology enables applications to achieve the highest levels of security; protecting user communications, user data, online transactions, and physical security. Using sensor technology, it allows separate devices to independently construct large volumes of the same secure data internally, without ever having to exchange secure data between the devices. One potential application of this unique technology allows users to fully secure communications. Central to this new technology are mechanisms to independently create common, secure data between devices.

• Flash-R™ licensing completed – In the early 1990s, the use of removable flash memory was revolutionary. e.Digital was the first to develop and introduce this disruptive technology to the world by way of its Flashback digital audio recorder. This technology was the foundation of the Company’s Flash-R patent portfolio. The Company successfully monetized its Flash-R patent portfolio beginning in 2008, through enforcement actions against 109 companies and related distributors, with 81 agreeing to license terms as of September 30, 2015. Three of the Flash-R patents expired in 2014 and the remaining two patents expire in March 2016.

• eVU® business completed – In 2003, Alaska Airlines introduced the first hard drive based portable inflight entertainment device; designed and developed by e.Digital, and powered by e.Digital technology. This product enjoyed many years as the “go to” portable inflight entertainment for many other airlines around the world. e.Digital launched its own portable inflight entertainment device called the eVU, providing an end-to-end inflight entertainment solution to many household name airlines, including Lufthansa, Air France and Alitalia. e.Digital’s encryption technology allowed its airline customers to provide passengers with movies that were still in theaters. The advent of tablet computers, smart phones, and easily accessible content led to the gradual decline of the Company’s eVU business. After nearly 10 years of eVU sales and services, e.Digital ceased its eVU operations as of September 30, 2015.

“Throughout its history, e.Digital has anticipated the needs and direction of the electronics industry,” commented Fred Falk, president and CEO of e.Digital. “Whether it was combining a speaker and microphone into a single in-your-ear device, or developing the world’s first removable flash memory based audio device, we have often been at the forefront. We were one of the early pioneers of the portable digital music industry, and the first to develop a Hollywood approved, hard drive based portable inflight entertainment device that was used by airlines around the world.

“In 2010, we developed foundational technologies that allow devices to play new roles in peoples’ lives; our Nunchi patent portfolio. Since that first innovation, we’ve seen industries embrace sensor based consumer products, and we are encouraged by the Nunchi licensing opportunities this represents to our company,” concluded Falk.

Second Quarter Fiscal 2016 Financial Summary:
The Company reported a net loss of $354,382 or $(0.00) per share, for the second quarter of fiscal 2016 compared to a net loss of $172,856 or $(0.00) per share for the prior year’s second quarter. For the second quarter of fiscal 2016 revenues totaled $164,405 compared to $394,502 for the second quarter of the prior year. The most recent quarter included $153,500 of patent license revenues compared to $340,034 for the second quarter of the prior year. Operating expenses decreased to $518,787 from $567,358 for the prior year’s comparable quarter primarily due to decreased patent-related legal costs.

For the six months ended September 30, 2015, the Company reported a net loss of $474,657 or $(0.00) per share on revenues of $709,531. For the comparable six months of the prior year the Company reported a net loss of $142,417 or $(0.00) per share on revenues of $1,077,250. The Company’s results are impacted by the timing and nature of license fees.

About e.Digital Corporation: For more than 25 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, and Nunchi® portfolio, are essential to many portable consumer electronic products. 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