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Press Releases

SanDisk And Sony Agree To Cooperate On Memory Stick

Sep 5, 2001

SanDisk To Sell Memory Stick Under The SanDisk Brand;
Both Companies Agree To Partner On Next Generation Memory Stick Format

SUNNYVALE, Calif., Sep. 5, 2001 - SanDisk Corporation (NASDAQ: SNDK) and Sony Corporation today announced they have signed a cooperation agreement involving the Memory Stick.

Under the agreement, Sony will supply SanDisk with Memory Stick media that SanDisk will resell under its own brand through its retail channel. SanDisk will also supply under market-competitive terms a portion of Sony's NAND flash memory requirements.

The two companies also agreed to jointly develop, separately manufacture and sell the next generation of Memory Stick that will incorporate advanced features such as significantly higher performance and storage capacities.

Suehiro Nakamura, executive deputy president of Sony Corporation said "We are very pleased to announce the collaboration with SanDisk on Memory Stick. Our partnership with SanDisk, a world leader in memory cards, will allow us to increase Memory Stick market share and build a strong position to make Memory Stick as the standard of digital recording media in the world."

Eli Harari, SanDisk president and CEO, hailed the agreement as "a significant milestone for SanDisk. Sony and SanDisk share a common vision for exciting new digital audio/video applications that will require the next generation Memory Stick. We are very pleased that Sony has invited us to contribute our expertise and intellectual property in flash memory cards to jointly develop the next generation of Memory Stick. This agreement enables SanDisk to sell every major flash memory card form factor so we can truly be a one-stop shop to our retail customers. We are also encouraged by Sony's plan to purchase our NAND flash components because Sony is one of the largest consumers of NAND Flash Memory components today."

SanDisk plans to commence worldwide shipments of Memory Stick and accessories to its more than 29,000 retail outlets over the next two quarters. Sales of NAND components to Sony are expected to begin towards the end of the year.

About SanDisk Corporation:
SanDisk Corporation, the world's largest supplier of flash data storage products, designs, manufactures and markets industry-standard, solid-state data, digital imaging and audio storage products using its patented, high density flash memory and controller technology. SanDisk is based in Sunnyvale, Calif.

About Sony Corporation:
Sony Corporation is a leading manufacturer of audio, video, game, communications and information technology products for the consumer and professional markets. With its music, pictures, computer entertainment and on-line businesses, Sony is uniquely positioned to be a leading personal broadband entertainment company in the world. Sony recorded consolidated annual sales of nearly $60 billion for the fiscal year ended March 31, 2001. Sony's Home Page URL: www.world.sony.com

The matters discussed in this news release contain forward-looking statements that are subject to certain risks and uncertainties as described under the caption "Factors That May Affect Future Results" in SanDisk's annual report on Form 10-K and quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission. There can be no assurance that next generation Memory Stick will be widely accepted in the market place. We cannot assure you that we will be able to offer competitive pricing for our NAND components, in which case we will not be able to achieve material sales of NAND component to Sony. The companies assume no obligation to update the information in this release.

All trade names are either registered trademarks or trademarks of their respective holders.

Contacts:

Mike Wong, SanDisk Corporation
408.548.0223
mwong@sandisk.com

David D. Yang, Sony (USA contact)
858.942.7733
david.d.yang@am.sony.com

Kiyo Shimizu, Sony (international contact)
+49.30.2575.5160
kiyohiko.shimizu@eu.sony.com

MEDIA CONTACTS

SanDisk Press Contact

press@sandisk.com

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