e.Digital Announces Change in Company Management & Board of Directors

SAN DIEGO, CA--(Marketwire - December 14, 2010) - e.Digital Corporation (OTCBB: EDIG), a leading innovator of dedicated portable entertainment systems and patented flash memory-related technology, announced today that Robert Putnam is stepping down from his positions as the Company's senior vice president, interim chief accounting officer, secretary and a member of the Company's board of directors.

"I've appreciated the opportunity to work with Fred Falk and the great e.Digital team and to have been involved with the Company since its inception 22 years ago," commented Putnam. "It has become apparent that e.Digital needs to realign its resources as the Company embarks on an expansion of its intellectual property business. I have confidence in Fred and the e.Digital team to execute this new business strategy to grow the Company."

"We appreciate Robert's many years of service to the Company and wish him well in his future endeavors," said Fred Falk, president and CEO of e.Digital. "We will be releasing additional intellectual property business developments tomorrow and provide details of the planned March 2011 stockholders meeting early next quarter."