Signs Premier Retailer Grand Stores As Direct Distribution Partner In The Desert's Most Exciting City

DUBAI, U.A.E, May 19, 2003 - SanDisk Corporation (NASDAQ:SNDK) announced today it has signed Grand Stores LLC as a direct distribution partner for Dubai in the United Arab Emirates. Grand Stores is an up-scale retail chain that carries SanDisk's complete line of flash memory cards and accessories. It has significantly increased its sales of SanDisk products due to the growing popularity of mobile phones, digital cameras, hand held computers, digital video cameras, MP3 players, key chain USB flash drives and other mobile devices that use removable storage.

"The SanDisk brand is widely recognized throughout the world and represents quality and compatibility to our customers," said Mohamed Abu Issa, managing director of Grand Stores, LLC. "We have operated as a sub-distributor over the past year but due to dramatically increased sales of SanDisk products, we are now a direct distribution partner. The consumer electronics revolution is just starting in this region and that represents a significant opportunity for both Grand Stores and SanDisk."

Gerrit Van Hofwegen, SanDisk's EMEA (Europe, Middle East and Africa) sales director, said, "Grand Stores is a premier retailer with the prestige needed to reach key market segments that are important to us. They have a proven track record of success and we are very proud to have this close relationship with Grand Stores."

SanDisk offers a complete line of flash memory cards that includes CompactFlash®, Memory Stick®, MultiMediaCards, SD Cards and SmartMedia(tm). The company also offers full range of USB 2.0 card readers, adapters and Cruzer, a thumbnail-type personal storage device. In addition, SanDisk will soon announce a new version of its Ultra CompactFlash cards that are specifically designed for digital cameras.

Since its inception over a decade ago Grand Stores has professionally represented and distributed world leading consumer brands. Grand Stores is considered one of the best retail organizations in the field of photography, digital imaging, electronics, audio and video equipment for the UAE market.

SanDisk Corporation, the world's largest supplier of flash 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 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.

CompactFlash is a registered trademark of SanDisk Corp. All other trade names are either registered trademarks or trademarks of their respective holders.

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