Revenues Grow 90% Year Over Year; EPS of $0.06

FREMONT, Calif., April 17, 2003-- Lexar Media, Inc. (Nasdaq: LEXR), a leading designer, developer and marketer of award-winning high-performance digital media and accessories, today reported financial results for the first quarter ended March 31, 2003

Total first quarter revenues of $54.6 million increased approximately 90% from $28.8 million in the same period last year. Product revenues of $50.3 million for the first quarter increased 102% from $24.9 million in the same period last year. Gross margin for the quarter was 27% compared to 28% in the first quarter last year. Net income was $4.3 million, or $0.06 per basic and diluted share, as compared to a net loss of $4.9 million, or ($0.08) per basic and diluted share, in the same period last year.

"Coming off our strong fourth quarter, we are very pleased with our first quarter results in what we anticipate will be our seasonally weakest quarter of the year," said Eric Stang, Lexar Media's president and chief executive officer. "We achieved solid financial results that were in line with our guidance in the face of significant challenges in the retail sector. Despite larger than typical price declines for the quarter, we effectively controlled our costs and met our financial targets. At the end of the quarter, our products were sold at more than 37,000 retail stores worldwide as compared to our target of 35,000 and approximately 31,000 at the end of the fourth quarter of 2002."

Recent Highlights
Lexar Media recently:

• Was selected for the second consecutive year as the exclusive provider of CompactFlash memory cards for all Nikon Coolpix digital cameras sold in the U.S. The 16-megabyte High-Speed CompactFlash memory cards are Lexar branded and labeled as a 'Nikon Starter Card'.
• Announced shipments of Olympus xD-Picture Cards™ in the highest capacity available, 256MB. The new capacity adds to the previously available capacities of 16MB, 32MB, 64MB and 128MB.
• Introduced 40X speed-rated Professional Series CompactFlash cards, capable of minimum sustained read and write speeds of 6MB per second, in capacities of 256MB and 512MB. Lexar also announced plans to extend its line of Professional Series CompactFlash cards with industry-leading 2GB and 4GB capacity cards, speed rated at 32X and capable of a minimum sustained write speed of 4.8MB per second.
• Extended its rigorous X-speed rating standard to Secure Digital cards. Lexar's new High-Speed Secure Digital products are speed rated at 32X and are available in 256MB and 512MB capacities.
• Introduced JumpDrive Secure, a rugged portable USB storage device with security software to protect data from unauthorized access for both PC and MAC environments.
• Introduced its second-generation Digital Photo Player, which brings digital images to the living room by connecting digital memory cards directly to a television. The new player is faster and supports six popular memory formats as well as high-resolution JPEG images generated from computers or cameras of up to six megapixels.
• Announced a 7-in-1 Hi-Speed USB 2.0 Multi-Card Reader, which accommodates CompactFlash Type I and Type II, Memory Stick, Memory Stick PRO, Secure Digital, Smart Media and MultiMediaCard and other formats
• Obtained a preliminary injunction against what Lexar believes to be misleading speed advertising by flash card reseller PQI in Germany.
• Announced its sponsorship of the San Francisco Giants and a program to award four lucky fans the opportunity to act as a Giants team photographer for a day. The sponsorship also includes ballpark signage, scoreboard and on-air mentions and other promotion by the Giants.
• Increased its borrowing capacity with a $25 million lending facility under a new banking relationship with Silicon Valley Bank. This facility has significantly improved terms over previous borrowing arrangements and is available to supplement Lexar's working capital needs as required to fund anticipated growth.