SOURCE: e.Digital Corporation

June 20, 2008 08:30 ET

e.Digital Provides Overview of Patent Licensing Efforts and Current IP Litigation

SAN DIEGO, CA--(Marketwire - June 20, 2008) - e.Digital Corporation (OTCBB: EDIG), a leading technology innovator of dedicated portable entertainment systems and patented flash memory-related technology, today provided an overview of its patent licensing efforts and current intellectual property (IP) litigation.

The Company's Flash-R™ patent portfolio covers certain aspects of the use of flash memory, addressing today's large and growing portable electronic products market. In 1993, the Company unveiled and marketed the first digital voice recorder with removable flash memory. In 1996, the Company produced and marketed the first digital voice recorder interface for downloading and managing voice recordings on the personal computer. The Flash-R portfolio is protected through the years 2014 - 2016 and includes the following U.S. patents:

--  US5491774: Handheld record and playback device with flash memory
--  US5742737: Method for recording voice messages on flash memory in a
    hand held recorder
--  US5787445: Operating system including improved file management for use
    in devices utilizing flash memory as main memory
--  US5839108: Flash memory file system in a handheld record and playback
--  US5842170: Method for editing in hand held recorder

"Digital recording on to flash memory has become a standard in portable electronic products," said Robert Putnam, senior vice president of e.Digital Corporation. Putnam initiated and oversees e.Digital's IP monetization efforts. "e.Digital created and patented important intellectual property in the use and utilization of flash memory in portable electronics products that we believe is being widely used in cell phones, cameras, camcorders, PDAs and other popular devices without our consent."

"We consider our Flash-R patent portfolio essential to many consumer electronic products and believe the numbers of companies infringing our portfolio are large with annual sales of what we believe are infringing products in the many billions of dollars," continued Putnam.

The Company is pursuing patent enforcement claims vigorously but such efforts are in the early stage and there is no assurance of future license fees or recovery. Patent enforcement involves a number of risks as more fully described in the Company's most recent Form 10-K.

In September 2007 the Company commenced enforcement action with respect to the patent portfolio by filing a complaint in the U.S. District Court for the Eastern District of Texas against Vivitar, a wholly-owned subsidiary of Syntax-Brillian, asserting that certain of their products infringe four of e.Digital's U.S. patents covering the use of flash memory technology. In March 2008, e.Digital filed a similar suit in the same jurisdiction against Avid Technology, Casio America, LG Electronics USA, Nikon, Olympus America, Samsung Electronics America, and Sanyo North America.

"Our strategy is to license the use of the Flash-R portfolio," added Putnam. "Through our legal representatives, we are engaged in licensing discussions and efforts with infringing parties. We are committed to recognizing the value of our patent portfolio and where and as required, we intend to enforce our rights through infringement litigation."

About e.Digital Corporation: e.Digital is a leading innovator of dedicated portable entertainment systems. 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, please visit:

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.

Contact Information

    e.Digital Corporation
    Robert Putnam
    (858) 304-3016 ext. 205
    Email Contact