Efforts to Monetize Flash Memory-Related Patent Portfolio (taken from on March 30, 2006, almost a year ago) http://www.edigital.com/news033006.htm

Addressing e.Digital's recently announced efforts to monetize its
flash memory-related patent portfolio, Blakeley commented, "According
to research from CLSA Asia-Pacific Markets, global demand for flash
memory is expected to reach $25 billion this year, due mainly to the
rapid proliferation of handheld devices. We believe the timing and
climate are right for us to pursue monetizing our flash memory-related
patent portfolio which we believe contains fundamental and valuable
claims regarding the use of embedded and removable flash memory in
portable devices."

e.Digital holds five flash
memory-related patents (#5,491,774, #5,742,737, #5,787,445, #5,839,108,
#5,842,170--The assignee name on four of the patents is Norris
Communications, now known as e.Digital Corporation--The assignee name
on the fifth patent is Comp General Corporation, a then-wholly owned
subsidiary of Norris Communications).

"We have
initiated the process of having the patents and claims independently
evaluated," concluded Blakeley. "When the evaluation process is
completed, and with the assistance of an intellectual property
management company, our strategy is to aggressively pursue licensing
agreements with companies we believe have products utilizing
e.Digital's intellectual property."