e.DIGITAL FILES PATENT INFRINGEMENT LAWSUITS AGAINST DIASONIC, KORG, YAMAHA AND OTHERS

Filings Follow Successful Licensing of Prior Patent Enforcement Actions

(SAN DIEGO, CA, – October 23, 2012) – e.Digital Corporation (OTCQB: EDIG), a long standing source of innovation and future-defining patented technologies, announced today that it has filed a new round of patent infringement lawsuits in the United States District Court for the Southern District of California.

As of the date of this release, Handal & Associates, the Company’s attorneys have filed three new actions against Diasonic Technology Co., Ltd, Yamaha Corp., Yamaha Corporation of America, Korg Inc., and Korg USA, Inc. who are makers of infringing products. Also named in the suits are several of their distributors and retailers including Guitar Center, Inc.; Best Buy Co., Inc.; Best Buy Stores, L.P.; Best Buy.Com LLC; Sam Ash Music Corporation; J & R Electronics Inc., Sweetwater Sound, Inc.; Kraft Music, Ltd.; and Sec Tech Enterprises, LLC. In the complaints, e.Digital asserts that products made and sold by the defendant companies infringe the Company’s U.S. patents covering the use of flash memory technologies. These patents are part of e.Digital’s Flash-R™ patent portfolio.

"e.Digital’s inventions have opened the door to the widespread use of flash memory in many of today’s popular electronic products,” said Fred Falk, president and CEO of e.Digital Corporation. “The strength of our fundamental intellectual property has been validated through licensing and settlement agreements and through reexamination by the U.S. Patent and Trademark Office. Our strategy is to leverage the knowledge and experience gained from prior enforcement actions to streamline, accelerate and maximize our patent licensing efforts. Our patents are essential to many consumer electronic products and their use is growing in importance with the proliferation of flash memory,” Falk added.

“We consider our intellectual property valuable company assets and we are committed to protecting and enforcing them.”