Corel Announces Support for the U3 Platform; New Mobile Consumer Electronic Device Offers Great Potential for Millions of Corel Users Worldwide.

LAS VEGAS -- Corel Corp. today joined other leading software vendors to announce its support of the new U3(TM) standard platform based on the USB Flash Drive storage device. At a press conference held today at the Consumer Electronics Show, the developers of the U3 platform, M-Systems Flash Disk Pioneers Limited (NASDAQ:FLSH) and SanDisk(R) Corp. (NASDAQ:SNDK), outlined their development plans and their intent to expand the USB Flash Drive from its current role as a simple, convenient storage device into a new mobile consumer electronics product that customers can use to carry, store and launch their own applications on any PC anywhere they go.

The U3 platform will provide an opportunity for many PC-based applications to now be taken on the road. The software applications that will be developed by leading independent software vendors will work on any U3-compatible USB devices. U3 will expand the USB Flash Drive technology market beyond storage by creating a new platform that will attract a community of independent developers to make applications for U3 devices.

"U3 has great potential to expand and simplify the way our customers take their Corel projects from computer to computer," said Jacqueline Maartense, Corel's executive vice president worldwide of product marketing. "Today, we are evaluating how we might be able to take advantage of this technology and which products would be most suitable for this type of mobility."

"We at U3 are very excited to receive support for our platform from Corel, a leading developer of personal productivity software," said Kate Purmal, interim executive director of U3. "U3 is committed to increasing the value and expanding the market for USB flash drives by uniting the industry around best-of-breed technology -- creating novel and useful applications based on the new USB platform."

Corel Corp.

Corel Corp. provides innovative software solutions that help millions of value-conscious businesses and consumers in over 75 countries improve their productivity. The company is renowned for its powerful software portfolio that combines innovative photo editing and graphics creation, vector-illustration and technical-graphics applications along with office and personal productivity solutions. Corel's flagship products include CorelDRAW Graphics Suite, the WordPerfect Office Suite, the Corel Painter Natural-Media painting and illustration software and the Paint Shop Family of digital photography and image-editing software. Corel was acquired by San Francisco-based Vector Capital in August 2003 and, since that time, has achieved record levels of profitability and growth across all product lines. Founded in 1985, Corel has headquarters in Ottawa, Canada. For more information or to download a trial version of the company's software, please visit www.corel.com.

About U3

U3(TM) LLC is based in Redwood City, Calif. Its objective is to expand USB drive technology beyond storage. Users will be able to easily carry, store and launch a wide range of new applications from their U3 device from any PC wherever they may go. For more information see www.U3.com.

Note to Editors: (C) 2004 Corel Corp. All rights reserved. Corel and the Corel logo are trademarks or registered trademarks of Corel Corp. and/or its subsidiaries. All other product, font and company names and logos are trademarks or registered trademarks of their respective companies.

All company and product names mentioned may be trademarks or registered trademarks of their respective holders and are used for identification purposes only.

NOTE: This press release includes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements, as they are subject to various risks and uncertainties, which may cause actual results to vary significantly. These risks include, but are not limited to, risks related to: market acceptance of the U3 platform; the ability of M-Systems, SanDisk and the U3 LLC to interest and attract suitable software developers in order to promote the U3 platform, the impact of competitive products and pricing; U3 development; commercialization and technological difficulties; development and growth of anticipated markets for U3; capacity and supply constraints; the effect of global economic conditions in general and conditions in SanDisk's and M-Systems' industry and target markets in particular; shifts in supply and demand; timely product and technology development/upgrades, including without limitation, timely development of the U3 specification, software development kits and other tools intended to promote the U3 platform and the ability to manage changes in market conditions as needed; and other risk factors detailed in the M-Systems' and SanDisk's most recent respective annual reports and their other respective filings with the Securities and Exchange Commission. All forward-looking statements included in this release are based upon information available as of the date hereof. Each of M-Systems and SanDisk assumes no obligation to update the information in this release and disclaims any obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements. Reference to above Web sites does not constitute incorporation of any of the information thereon into this press release.