The new high capacity SanDisk Ultra II cards are designed to be a reasonably priced, high performance solution for the photography channel and were announced yesterday at the Photokina trade show in Cologne, Germany.

Yoram Cedar, SanDisk's senior vice president of engineering, said, "SanDisk's engineers have been refining our NAND/MLC and advanced 32 bit controller architectures over the past 5 years, and we are now beginning to see the full fruits of these efforts. These new Ultra II cards employ our highest density 90nm 4-gigabit (Gb) NAND/MLC single-die tightly coupled with our latest generation controller chips. New high performance algorithms were implemented that maximize the MLC performance while benefiting from the lower cost per megabyte of MLC memory. These achievements in products that will ship in volume production in the coming quarter demonstrate the true power of the NAND/MLC technology that SanDisk and Toshiba have developed through our strategic partnership."

Jim Handy, director of non-volatile memory at Semico Research Company, said, "The fact that SanDisk is now able to support their high-speed SanDisk Ultra II line of flash cards with MLC NAND speaks very highly of the company's command of MLC technology. Until now, MLC could not be used in SanDisk's Ultra line of high-speed flash cards whose higher performance requirements ruled out MLC's cost savings. The company has found a way to bring MLC's improved cost structure into the market for top-of-the-line cards."

The SanDisk Ultra II product line is available in CompactFlash, Memory Stick PRO and SD formats.

SanDisk Ultra II cards are available at most of the 80,000 consumer electronics stores and other retail outlets where SanDisk products are sold worldwide.

About SanDisk

SanDisk, the world's largest supplier of flash memory data storage card 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, CA.

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 the company's annual report on Form 10-K-A and quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission. The companies assume no obligation to update the information in this release.