October 22, 2009 08:30 ET

e.Digital Announces Cross Licensing and Settlement Agreement With Samsung

SAN DIEGO, CA--(Marketwire - October 22, 2009) - e.Digital Corporation (OTCBB: EDIG), a leading innovator of dedicated portable entertainment systems and patented flash memory-related technology, announced today that it has entered into a cross licensing and settlement agreement with Samsung Electronics Co, Ltd. (Samsung). Under the terms of the confidential agreement, Samsung obtained a license and release on e.Digital's foreign and domestic patent rights, including the Company's Flash-R™ patent portfolio, and e.Digital obtained a license and release on certain Samsung patents. e.Digital also received a one-time licensing fee.

e.Digital's Flash-R patent portfolio covers certain aspects of the use of flash memory in the large and growing portable electronic products market. The Company introduced 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.

"We are pleased to have successfully concluded the first round of our intellectual property (IP) licensing strategy by licensing and settling all seven of the active cases that initiated the monetization of our important IP portfolio," remarked Fred Falk, president and CEO of e.Digital. "We expect to provide additional information regarding the next licensing and legal round in upcoming Company communications."

About e.Digital Corporation: e.Digital is a leading innovator of dedicated portable in flight entertainment systems. More than 30 airlines have made dedicated portable systems powered by e.Digital technology their in flight entertainment choice. e.Digital also owns and is monetizing its Flash-R™ portfolio of flash memory-related patents. e.Digital was the first company to develop, patent and employ important aspects of the use of flash memory in recording devices. For more information about e.Digital, 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.