e.Digital Corporation and Fujitsu Ten Settle Dispute

SAN DIEGO -- e.Digital Corporation (OTC:EDIG) and Fujitsu Ten Corporation of America (FTCA) announced today that they have entered into a settlement of their contractual dispute arising out of the development of the HD 1213 MP3 product for automotive use by e.Digital for FTCA. The companies regret that the product did not proceed to market as they had anticipated and both companies remain open to potential business relationships and opportunities with each other.

About e.Digital Corporation: e.Digital Corporation partners with leading, innovative companies, designing and providing manufacturing services for their branded digital video, digital audio and wireless products based on the Company's proprietary MicroOS(TM)-enabled technology platforms. e.Digital specializes in the delivery and management of open and secure digital content through its Personal Video, Personal Audio, Automotive, and Wireless technology platforms. e.Digital's services include the licensing of the Company's MicroOS(TM), custom software and hardware development, industrial design, and manufacturing services through the Company's manufacturing partners. For more information about e.Digital and its technology platforms, please visit the company website at www.edigital.com.