eDIGITAL REPORTS THIRD QUARTER RESULTS

02.11.2016| News

(SAN DIEGO, CA, – February 11, 2016) – e.Digital Corporation (OTCQB: EDIG), a long standing source of innovation and future-defining patented technologies, today announced results for the third quarter of fiscal year 2016, ended December 31, 2015.

Recent Highlights:

New Website and Branding – Designed with a fresh new look, eDigital recently launched a new website allowing visitors to more easily browse Company information, review eDigital’s history and learn about new technology innovations. The website also displays the Company’s new logo. The new site is available atwww.edigital.com

Nunchi® Technology Enforcement –The Nunchi portfolio consists of eight patents and two pending patent applications. Nunchi technology encompasses the drawing together of data from fixed or mobile sensors and uniquely using it to recognize, understand and affect interactions. The Company has filed patent infringement lawsuits against companies in the connected home security market, including Dropcam, Arcsoft/Simplicam, Oco, Mivatek, MyFox, iSmart Alarm, iBaby and Nest, and continues to identify companies that it believes infringe this technology. During the third fiscal quarter of 2016, the United States District Court for the Northern District of California issued a claim construction order eDigital believes favorable in the Company’s case against DropCam.

microSignet™ Technology – The Company owns intellectual property in the area of data protection called microSignet. It includes one granted patent and a pending patent application. 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. The Company is seeking to license this technology and develop the technology through others.

Synap™ –The Company has one pending patent application in an exciting new area of secure communications. 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.

“Due to changes in the patent laws over the last few years, our Nunchi patents are being challenged earlier in the litigation process,” said Fred Falk, president & CEO of eDigital. “A common maneuver is for defendants to file a petition for Inter Partes Review (IPR) of the asserted patents which, in our Dropcam case, the United States Patent Trial and Appeal Board (PTAB) has granted. As a result, the PTAB will review the patents. If the patents are upheld, we believe the patents will be stronger against other defendants considering IPR challenges. Aside from the IPR activity, we are in early negotiations with a number of the other defendants and are confident regarding the prospects for mutually acceptable license settlements,” Falk concluded.