e.DIGITAL ANNOUNCEs ROYALTY BEARING LicensE

and Settlement agreement with IKEGAMI

(SAN DIEGO, CA, – March 1, 2010) – e.Digital Corporation (OTC: EDIG), a leading technology innovator of dedicated portable entertainment systems and patented flash memory-related technology, announced today that it has entered into a royalty bearing license and settlement agreement with Ikegami Electronics (USA) (Ikegami). Under the terms of the confidential agreement, Ikegami has obtained a license and release on all e.Digital foreign and domestic patent rights and has agreed to pay an on-going royalty for the licensed rights.

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 second royalty bearing license agreement from our recently filed round of Flash-R related cases,” remarked Fred Falk, president and CEO of e.Digital. “We anticipate further legal and licensing activity this fiscal year.”