NEWS + PRESS

e.DIGITAL RECEIVES FAVORABLE CLAIM CONSTRUCTION RULING

12.02.2015| News

FOR IMMEDIATE RELEASE

(SAN DIEGO, CA, – December 2, 2015) – e.Digital Corporation (OTCQB: EDIG), a long-standing source of innovation and future-defining patented technologies, announced today that the United States District Court for the Northern District of California issued a favorable claim construction order in the Company’s case against DropCam.

A claim construction hearing, also known as a Markman hearing, allows each party to advance what they believe is the inventor’s intended meaning of certain terms used in the patents asserted in litigation. A Court analyzes the disputed terms, considers the arguments of counsel and issues an order construing the meaning of those terms. The patents asserted in e.Digital’s case against DropCam, part of e.Digital’s Nunchi® patent portfolio, relate to the way systems analyze and manage data.

The Company’s law firm, Handal & Associates, asserted more than 50 claims from six patents against DropCam, resulting in a number of disputes over the meaning of specific terms in the patents. We believe the Court’s ruling is favorable to e.Digital and enhances the ability to enforce the Company’s patents against infringers.

“The Court’s ruling supports our interpretation of the claims of the patents and increases our confidence in our prospects for monetizing our novel Nunchi technology,” said Fred Falk, president and CEO of e.Digital. “This is particularly true in light of the fact that a large and growing number of cutting edge products appear to infringe our Nunchi patents,” added Falk. “We are continuing our research and innovation in the science of context awareness and look forward to additional patent applications related to our proprietary technologies,” Falk concluded.

About e.Digital Corporation: For more than 25 years, e.Digital’s ideas and inventions have impacted the evolution of consumer products. Today, e.Digital innovations, including its Flash-R™ portfolio of flash memory-related patents, and Nunchi® portfolio, are essential to many portable consumer electronic products. For more information about e.Digital, please visit: www.edigital.com.

Safe Harbor statement under the Private Securities Litigation Reform of 1995: This press release includes forward-looking information and statements. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding assumptions, projections, expectations, targets, intentions or beliefs about future events that are based on management’s belief, as well as assumptions made by, and information currently available to, management. While the Company believes that expectations are based upon reasonable assumptions, there can be no assurances that goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. Some of these factors include the substantial uncertainties inherent in pursuing patent enforcement activities including, but not limited to the risks and costs of litigation and support activities, the timing and amount of settlements/licenses if any, the acceptance of existing and future products and technologies, the difficulty of commercializing and protecting new technology such as the Company’s Nunchi, microSignet and other technologies, the impact of competitive products, technologies and pricing, general business and economic conditions, and other factors detailed in the Company’s Annual Report on Form 10-K and other periodic reports filed with the SEC. Except as required by law, the Company specifically disclaims any obligation to update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.

CONTACT: e.Digital Corporation: Investor Relations, (858) 304-3016 ext. 205, ir@edigital.com

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