SanDisk Works With Grass Valley to Develop World's First Broadcast Industry Camcorder to Use Flash Memory Cards; Increased Performance and Capacity of SanDisk Extreme III High-Performance, CompactFlash Cards Lead to New Industry Development.

SUNNYVALE, Calif. -- SanDisk(R) Corporation (NASDAQ:SNDK) announced today that flash memory CompactFlash(R) cards, which it originally invented, will be used in the new Grass Valley(TM) Infinity(TM) Series Digital Media Camcorder. The camcorder, which debuted in the United States on Saturday, has slots for two CompactFlash cards. It is the first camcorder introduced in the broadcast industry that uses non-proprietary, removable, solid-state flash memory cards as recording and playback media.

SanDisk's flash memory cards offer a number of advantages over videotape, the traditional storage medium for video cameras. First of all, they are re-usable with no degradation in picture quality. Since there are no moving parts, cards are much more durable than videotape and allow for shooting in a wider variety of shooting conditions in the field. In addition, memory cards can greatly improve workflow in the editing suite since the content is downloaded directly into a laptop or computer and is ready for immediate editing. Videotape must be captured in real-time -- transferring content from tape to computer hard drive -- before it can be digitally edited, another step that requires time and additional equipment. The small size of the memory cards makes them easier to transport and store.

Tanya Chuang, SanDisk's senior worldwide product marketing manager for the digital imaging market, said, "We have been working with Thomson for two years to incorporate CompactFlash technology in this new camcorder and are happy to see that the new Grass Valley Infinity Digital Media Camcorder has two CompactFlash card slots."

Marc Valentin, president of the Grass Valley business within Thomson, said, "High performance memory card products are critical to take advantage of the advanced features and performance of the Grass Valley Infinity Digital Media Camcorder. The line of SanDisk Extreme(R) III CompactFlash cards offer an ideal combination of industry-leading performance and capacity that enables these new camcorders to perform to their maximum capabilities. In addition, SanDisk has a reputation for offering the highest level of reliability that professional photographers depend on at a price that belies the advanced features of the SanDisk Extreme III cards."

Chuang explained that with SanDisk high-performance CompactFlash cards currently reaching 8 gigabytes(1) in capacity -- and with higher capacities expected in the near future -- flash memory cards "now have enough capacity to make them a viable alternative to the use of hard disk drives in professional camcorders."

High-performance SanDisk Extreme III CompactFlash cards also can provide the faster throughput required by professional-grade camcorders. SanDisk Extreme III CompactFlash cards, among the fastest in the industry, have minimum write and read speeds of 20 megabytes per second (160 megabits per second).(2)

Chuang added that "over the years, our high-performance CompactFlash cards have become very popular in the digital still camera imaging market. Broadcast industry camcorders represent a new market for SanDisk and it is significant that people in the industry have recognized the genuine benefits of our high capacity, high-performance CompactFlash cards."

SanDisk is the original inventor of flash storage cards and is the world's largest supplier of flash data storage card products using its patented, high-density flash memory and controller technology. SanDisk is headquartered in Sunnyvale, CA and has operations worldwide, with more than half its sales outside the U.S.

SanDisk's product images can be downloaded from www.sandisk.com/corporate/media.asp

SanDisk's web site/home page address: http://www.sandisk.com

SanDisk, the SanDisk logo, CompactFlash and SanDisk Extreme are trademarks of SanDisk Corporation, registered in the U.S. and other countries.

(1) 1 gigabtye (GB) = 1 billion bytes

(2) 1 megabyte (MB) = 1 million bytes. Performance based on SanDisk internal testing

This press release contains certain forward-looking statements, including expectations for new product introductions, applications, markets, and customers that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Risks that may cause these forward-looking statements to be inaccurate include among others: market demand for our products may grow more slowly than our expectations or there may be a slower adoption rate for these products in new markets that we are targeting and the other risks detailed from time-to-time in our Securities and Exchange Commission filings and reports, including, but not limited to, Form 10-K and our quarterly reports on Form 10-Q. We do not intend to update the information contained in this press release.