You said:

"we as shareholder of EDIG can send today settlement news to those news agencies that first reported 6 months ago re filing of patent infringement cases, including some of them that sarcastically reported with close to 200 response comments.

I think this is a very bad idea. Management is in the best position to do what is best for the company. We've all been here long enough to appreciate what this outcome represents and want to herald whats happened to the investment community. We can't lose sight of the terms of this settlement.

(SAN DIEGO, CA, – September 25, 2008) – e.Digital Corporation (OTC: EDIG), a leading technology innovator of dedicated portable entertainment systems and patented flash memory-related technology announced today that a major electronics manufacturer has purchased the first license for its Flash-R™ patent portfolio. Under the terms of the confidential licensing and settlement agreement, e.Digital is receiving a one-time licensing fee and cross-license rights to certain patents covering multimedia-related products.

e.Digital’s Flash-R patent portfolio covers certain aspects of the use of flash memory, addressing today's large and growing portable electronics products market. The Company unveiled 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, PDA’s and other popular devices. In September 2007 and March 2008, the Company filed its first Flash-R portfolio patent infringement litigation against eight defendants.

"We are very pleased to have entered into what we believe will be the first of many Flash-R patent portfolio licensing agreements,” said Robert Putnam, senior vice president of e.Digital Corporation.

Remember we are assuming a negotiation posture with 7 infringers. There is a distinct possibility that several of those could wind up settling before the end of the month. In the zeal of the moment we should not presume to play a role larger that of investor. Sorry if this rubs you the wrong way sman. I appreciate your contributions and share your enthusiasm but I can't in good conscience condone your suggestion.

Larry