e.Digital Files Patent Infringement Lawsuit Against Dropcam

e.Digital Files Patent Infringement Lawsuit Against Dropcam 
Company Asserts Patents and Claims From Its Nunchi(R) Patent
SAN DIEGO, CA -- (Marketwired) -- 07/02/14 --   e.Digital Corporation
(OTCQB: EDIG), a long standing source of innovation and
future-defining patented technologies, today announced that it has
filed a patent infringement lawsuit against "connected" security
camera maker Dropcam. The complaint was filed in the United States
District Court for the Southern District of California. 
Handal & Associates, on behalf of the Company, recently filed the
lawsuit against Dropcam, asserting six patents that are part of the
Nunchi patent portfolio. e.Digital believes the Dropcam products
named in the complaint infringe key aspects of the Company's Nunchi
patents, covering the use of devices to communicate and monitor
remote locations. 
Nunchi technology involves the retrieval of data from fixed or mobile
sensors, using it to recognize, understand and affect interactions.
Services based on the Nunchi portfolio include the use of servers,
communication networks, sensors, adaptive algorithms and relational
databases to understand and respond to the needs of people. The
Nunchi applications range from simplistic tasks such as communication
screening to much more complex tasks such as optimizing a user's
interactions and activities to enrich their lives. 
"We are starting to see products introduced that exhibit reliance on
the teachings of our Nunchi patent portfolio," commented Fred Falk,
president and CEO of e.Digital. "The Dropcam product is an example of
this. The connected home industry is increasingly reliant on the
collection of data from remote sensors. This data is thereafter
interpreted to determine what, if any, response is required. As this
industry continues to evolve, we believe that the interface between
remote data collection and the user will become more frequent and
grow in demand. This is where our Nunchi technology resides; between
the remote data collection and the user," added Falk.  
"We would like to see this technology develop and are willing to work
with companies to develop their own applications and products, but
not at the expense of our licensing program or shareholders. We must
therefore take steps to enforce and protect our intellectual property
("IP") against those that leverage our valuable company assets for
their own gain. We believe there are many other industry segments
that are or will be fielding products that incorporate the
technologies we've invented. As a result, we will continue to work
closely with Handal & Associates to identify potential licensees and
also possible infringers of our Nunchi IP, and bring them in line so
as to have a level playing field for all who want to use our
company's technologies," concluded Falk. 
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: 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. 
e.Digital Corporation:
Investor Relations
(858) 304-3016 ext. 205
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