e.Digital Announces License and Settlement Agreement With Creative Labs

SAN DIEGO, CA -- (Marketwired) -- 05/20/13 -- e.Digital Corporation (OTCQB: EDIG), a long standing source of innovation and future-defining patented technologies, announced today that it has entered into a license and settlement agreement with Creative Labs (Creative). Under the terms of the confidential agreement, Creative obtained a license and release on the Company's Flash-R™ patent portfolio and paid e.Digital a one-time license 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 Creative join our family of Flash-R portfolio licensees," said Fred Falk, president and CEO of e.Digital. "Creative joins the growing list of Flash-R portfolio licensees, which includes Panasonic, Samsung, Olympus, HTC and other world recognized manufacturing companies. With the assistance of our law firm, Handal & Associates, this now brings the total number of license and settlement agreements during 2013 to five as we aggressively pursue our monetization efforts."

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.

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, our ability to protect and monetize our IP portfolio, 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.