e.Digital Corporation: e.Digital Announces Settlement and Cross-Licensing Agreement With Casio

SAN DIEGO, CA--(Marketwire - December 2, 2008) - e.Digital Corporation (OTCBB: [ EDIG ]), a leading technology innovator of dedicated portable entertainment systems and patented flash memory-related technology, announced today that it has entered into a settlement and cross-licensing agreement with Casio. Under the terms of the confidential agreement, Casio obtained a license and release on all e.Digital foreign and domestic patent rights, including the Company's Flash-R™ patent portfolio, and e.Digital obtained a license and release on any Casio patents that cover e.Digital's current product line.

e.Digital's Flash-R patent portfolio covers certain aspects of the use of flash memory, addressing today's large and growing portable electronics products market. The Company unveiled the first portable recorder with removable flash memory in 1993 and believes its patent portfolio to be essential to many consumer electronics products that utilize flash memory including cell phones, digital cameras, camcorders, PDAs and other popular devices. In September 2007 and March 2008, the Company filed its first Flash-R portfolio patent infringement litigation against eight defendants.

"We are pleased to have entered into the second licensing agreement of our fundamental flash memory-related intellectual property (IP)," remarked Robert Putnam, senior vice president of e.Digital Corporation. "Our strategy is to utilize our growing IP-related revenues and intellectual property assets to fund and expand our eVU™ dedicated portable entertainment system business into the medical industry and other segments of the travel and leisure industry."

About e.Digital Corporation: e.Digital is a leading innovator of dedicated portable entertainment systems through its proprietary eVU™ product line. e.Digital also owns and is pursuing the monetization of its Flash-R™ portfolio of flash memory-related patents. e.Digital was the first company to employ and patent important aspects of the use of removable flash memory in portable recording devices. For more information about e.Digital and eVU, please visit: [ www.edigital.com ].

Safe Harbor statement under the Private Securities Litigation Reform of 1995: All statements made in this document, other than statements of historical fact, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act. You should not place undue reliance on these statements. We base these statements on particular assumptions that we have made in light of our industry experience, the stage of product and market development, expected future developments and other factors that we believe are appropriate under the circumstances. These forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the businesses of the Company and the industries and markets in which the Company operates. Actual outcomes and results may differ materially from what is expressed or implied by the forward-looking statements. More information about potential factors that could affect the Company can be found in its most recent Form 10-K, Form 10-Q and other reports and statements filed with the Securities and Exchange Commission ("SEC"). e.Digital Corporation disclaims any intent or obligation to update these or any forward-looking statements, except as otherwise specifically stated by it.

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