e.Digital Announces License and Settlement Agreement With D&MPress Release Source: e.Digital Corporation On Wednesday September 7, 2011, 1:00 pm

SAN DIEGO, CA--(Marketwire -09/07/11)- e.Digital Corporation (OTC.BB: EDIG.OB - News), a leading innovator of dedicated portable entertainment systems and patented flash memory-related technology, announced today that it has entered into a license and settlement agreement with D&M Holdings, Inc. (D&M). Under the terms of the confidential agreement, D&M obtained a license and release on the Company's Flash-R™ patent portfolio and paid e.Digital a one-time licensing fee.

e.Digital's Flash-R patent portfolio is comprised of fundamental technology related to 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 entered into our 17th Flash-R portfolio related licensing and settlement agreement," said Fred Falk, president and CEO of e.Digital. D&M joins the growing list of Flash-R patent portfolio licensees, including Samsung, Olympus, and other world recognized manufacturing companies.

About e.Digital Corporation: For more than 20 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, are essential to many portable consumer electronic products. The Company pioneered dedicated portable in-flight entertainment systems and more than 30 airlines have made e.Digital powered products their in-flight entertainment choice. For more information about e.Digital, please visit: www.edigital.com.