LAS VEGAS, NV, Jan. 9, 2002 - SanDisk Corporation (NASDAQ:SNDK) announced today that it will co-brand with Hewlett-Packard Company a SanDisk-manufactured 16 megabyte (MB) Secure Digital Card that will be included with the new HP Photosmart 812 digital camera. The camera was introduced at the Consumer Electronics Show at the Las Vegas Convention Center where SanDisk is showing products in booth # 11511 and at the SD Pavilion # 10536.

Bo Ericsson, SanDisk's vice president of OEM marketing, said, "HP's decision to include a SanDisk SD Card with the HP Photosmart 812 digital camera is another milestone in SanDisk's long, successful relationship with HP. Our relationship with HP began with our earlier PC cards and CompactFlash™ cards, and today we are pleased to report that it has been extended to include our new small-size SD cards."

"The HP Photosmart 812 digital camera delivers many 'firsts' for HP as well as the industry," said Karl Wardrop, digital imaging product manager, HP Consumer Business Organization. "In addition to being the first camera in the industry to offer the exclusive HP Instant Share technology, the HP Photosmart 812 digital camera is HP's first camera to use the new, small-sized SD card. By using SanDisk's SD memory card, HP has been able to design a sleek, compact digital camera with considerable consumer appeal."

The HP Photosmart 812 digital camera is an advanced four-megapixel camera that allows consumers to select up to 14 destinations to send their photo the next time the camera is connected to a computer. The 21x total zoom, 3x optical with Pentax lens and 7x digital zoom camera, also allows users to capture memories in sound and motion by using the video clip and audio features.

The HP Photosmart 812 digital camera will ship with a SanDisk 16MB SD Card. Additional SanDisk SD Cards, in capacities ranging between 16 and 128MB, can be purchased at the 38,000 retail stores worldwide where SanDisk products are sold.

SanDisk, 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, 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 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.

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