e.Digital Reports Second Quarter Results

e.Digital Reports Second Quarter Results 
SAN DIEGO, CA -- (Marketwired) -- 11/13/13 --   e.Digital Corporation
(OTCQB: EDIG), a long standing source of innovation and
future-defining patented technologies, today announced results for
its second quarter of fiscal 2014, ended September 30, 2013. 
Recent Highlights: 

--  Progress with Flash-R(TM)patent licensing: Through its law firm,
    Handal & Associates, the Company has entered into license and
    settlement agreements with a number of defendants. A majority of the
    recent settlements negotiated during the current quarter are in the
    process of being finalized and documented. The Company expects
    additional settlements before the end of the calendar year. During the
    last quarter, the Company filed a notice of appeal to the Federal
    Circuit Court of Appeals, challenging the August 21, 2013 collateral
    estoppel ruling that could have an impact on the course of future
    litigation against non-settled parties.
--  Grant of new patent to portfolio of IP: The United States Patent and
    Trademark Office has granted the Company a new patent, US 8,572,440,
    titled System and Method for Managing Information Stored in
    Semiconductors. This patent is the foundation of the Company's newly
    created microSignet(TM) IP portfolio. The Company has already filed
    a continuation patent application that it expects will further
    strengthen the portfolio.
--  Continued marketing the Nunchi(R)family of patents: The Company is
    marketing its Nunchi patent portfolio through a modified licensing
    strategy involving the assistance of its law firm, Handal &

Management Commentary:
 "Our legal team at Handal & Associates has
worked very hard navigating the challenges presented by the
defendants in our current litigation activities," commented Fred
Falk, president and CEO of e.Digital. "Good progress has been made
and as a result, we anticipate increased cash receipts through the
balance of the current round of license and settlement activities. We
remain dedicated and financially prepared to defend our patents
through trial against any defendants who infringe our technologies
and do not settle and license. We anticipate that the proceeds from
the current round of settlements will help fund our overall
litigation and licensing strategy, not only for our Flash-R patents
but for our Nunchi and microSignet patents as well. e.Digital's
litigation activities have created an awareness in the industries and
among current licensees, of our Nunchi and microSignet patents and
have opened the door for serious licensing discussions for those
patents, leading us to expand our relationship with Handal &
Associates. Although the Company reported a financial loss for fiscal
Q2, we expect increased patent license revenues for the current
quarter based on the recent settlements and current negotiations,"
concluded Falk. 
Second Quarter Fiscal 2014 Financial Summary:
 The Company reported a
net loss of $410,113 or $(0.00) per share, for the second quarter of
fiscal 2014 compared to a net loss of $376,005 or $(0.00) per share
for the prior year's second quarter. For the second quarter of fiscal
2014 revenues totaled $101,729 compared to $124,949 for the second
quarter of the prior year. The most recent quarter included $34,725
of patent license revenues compared to $2,000 for the second quarter
of the prior year. Operating expenses increased to $511,842 from
$500,954 for the prior year's comparable quarter primarily due to
increased patent-related legal costs. 
For the six months ended September 30, 2013 the Company reported a
net loss of $481,550 or $(0.00) per share on revenues of $551,187.
For the comparable six months of the prior year the Company reported
a net loss of $708,988 or $(0.00) per share on revenues of $257,495.
The Company's results are impacted by the timing and amount of
license fees. 
About e.Digital Corporation: For more than 20 years, e.Digital's
ideas and inventions have impacted the evolution of consumer
products. Today, e.Digital innovations, including its Flash-R(TM)
portfolio of flash memory-related patents, are essential to many
portable consumer electronic products. The Company pioneered
dedicated portable in-flight entertainment systems and more than 30
airlines have made e.Digital powered products their in-flight
entertainment choice. For more information about e.Digital, please
visit: www.edigital.com. 
Safe Harbor statement under the Private Securities Litigation Reform
of 1995: All statements made in this document, other than statements
of historical fact, are forward-looking statements within the meaning
of Section 21E of the Securities Exchange Act. You should not place
undue reliance on these statements. We base these statements on
particular assumptions that we have made in light of our industry
experience, our ability to protect and monetize our IP portfolio,
expected future developments and other factors that we believe are
appropriate under the circumstances. These forward-looking statements
are based on the then-current expectations, beliefs, assumptions,
estimates and forecasts about the businesses of the Company and the
industries and markets in which the Company operates. Actual outcomes
and results may differ materially from what is expressed or implied
by the forward-looking statements. More information about potential
factors that could affect the Company can be found in its most recent
Form 10-K, Form 10-Q and other reports and statements filed with the
Securities and Exchange Commission ("SEC"). e.Digital Corporation
disclaims any intent or obligation to update these or any
forward-looking statements, except as otherwise specifically stated
by it.  

                    e.Digital Corporation and subsidiary                    
                    Condensed Consolidated Balance Sheet                    
                   (000's omitted except per share amount)                  
                                                 September 30,   March 31,  
                                                      2013          2013    
                                                       $             $      
    Cash                                                 1,356         1,741
    Accounts receivable                                     59           176
    Inventory                                               13            21
    Deposits and prepaid expenses                           67            60
                                                 ------------- -------------
  Total current assets                                   1,495         1,998
    Inventory, long term                                    63           104
    Property and equipment, net                             11            13
                                                 ------------- -------------
  Total assets                                           1,569         2,115
                                                 ============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
    Accounts payable                                        79            67
    Accrued and other                                      194           273
                                                 ------------- -------------
  Total current liabilities                                273           340
  Stockholders' equity                                   1,296         1,775
                                                 ------------- -------------
  Total liabilities and stockholders' equity             1,569         2,115
                                                 ============= =============
                    e.Digital Corporation and subsidiary                    
               Condensed Consolidated Statement of Operations               
                  (000's omitted except per share amount)                   
                                        For the three    For the six months 
                                        months ended           ended        
                                        September 30,       September 30,   
                                       2013      2012      2013      2012   
                                         $         $         $         $    
Revenues                                  102       125       551       257 
Cost of revenues                                                            
  Products and services                    63        99       171       193 
  Patent licensing and litigation                                           
   costs                                  113        53       225        75 
  Contingent legal fees and expenses       14         1        30         3 
Selling and administrative                244       179       446       380 
Research and related expenditures          78       169       161       315 
                                     --------  --------  --------  -------- 
Total operating expenses                  512       501     1,033       966 
                                     --------  --------  --------  -------- 
Loss                                     (410)     (376)     (482)     (709)
(Provision for) benefit from income                                         
 taxes                                      -         -         -         - 
                                     --------  --------  --------  -------- 
Loss attributed to common                                                   
 stockholders                            (410)     (376)     (482)     (709)
                                     ========  ========  ========  ======== 
Loss per common share - basic and                                           
 diluted                                (0.00)    (0.00)    (0.00)     0.00 
                                     ========  ========  ========  ======== 
Weighted average common shares                                              
  Basic and diluted                   293,187   293,003   293,187   293,003 
                                     ========  ========  ========  ======== 

e.Digital Corporation:
Investor Relations
(858) 304-3016 ext. 205
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