(SAN DIEGO, CA, - February 28, 2011) - e.Digital
Corporation (OTC: EDIG), 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 TEAC America, Inc. (TEAC). Under
the terms of the confidential agreement, TEAC 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 11th Flash-R
portfolio related licensing and settlement agreement," said Fred
Falk, president and CEO of e.Digital.

About e.Digital Corporation: e.Digital is a leading
innovator of dedicated portable in-flight entertainment systems.
More than 30 airlines have made dedicated portable systems
powered by e.Digital technology their in flight entertainment
choice. e.Digital also owns and is monetizing its Flash-R™
portfolio of flash memory-related patents. e.Digital was the
first company to develop, patent, and productize fundamental
technology that opened the door to the widespread use of flash
memory in many of today's popular electronic products. For more
information about e.Digital, please visit: www.edigital.com.