SANDISK UNVEILS THE HIGHEST CAPACITY MEMORY STICK PRO STORAGE CARD IN THE WORLD--2 GIGABYTES

SanDisk Leads In Capacity By Designing And Manufacturing Memory Card Format Pioneered By Sony and SanDisk

LAS VEGAS, NV, Jan. 8, 2004 -- SanDisk Corporation today introduced a 2 gigabyte (GB) SanDisk Memory Stick(r) PRO(tm), the highest capacity available in this card format. SanDisk also introduced the first Memory Stick PRO Duo cards that it has designed and manufactured. The new cards were introduced at a press conference at the Consumer Electronics Show where SanDisk is demonstrating products in Booth #23062, South Hall, Las Vegas Convention Center.

Sony and SanDisk jointly pioneered Memory Stick PRO to meet the growing consumer need for high performance and high capacity flash cards for a wide variety of digital devices including digital cameras, camcorders and PDAs. These new cards are manufactured by and include advanced technology from SanDisk to assure optimal performance and large capacities at very competitive prices. SanDisk meets or exceeds all Memory Stick PRO specifications and performs extensive testing to guarantee compatibility.

"SanDisk has dramatically extended its commitment to the Memory Stick flash card format by upping our investment in design, manufacturing, technology and the channel to rapidly grow the market," said Nelson Chan, senior vice president and general manager of SanDisk's retail business unit. "The company has leveraged its expertise to deliver new Memory Stick PRO and PRO Duo cards at competitive prices in line with other industry-standard card formats such as the SD card. Through this renewed focus on the Memory Stick card format, we intend to deliver the best overall price/performance and value to our customers."

The new SanDisk MS PRO and MS PRO Duo cards are now distinguished by their outer blue plastic shells that represent the standard look across all of SanDisk's mainstream memory cards. MS PRO Duo cards are roughly half the size of MS PRO and are intended for use in smaller sized digital devices. An adapter is included with every MS PRO Duo and can be used in MS PRO compatible devices.

The new Memory Stick PRO and PRO Duo cards have security features that let consumers safeguard their pictures, music and video from being lost or erased by accidentally removing the card while it is in use. For commercial content providers, the new format includes the MagicGate(tm) copyright technology, which provides secure protection of commercial and copyrighted content, such as digital music and, in the future, video and games.

Memory Stick PRO-enabled devices can capture and play back DVD-quality video in real time as well as store multiple hours of CD-quality music, high-resolution digital images and other applications that require high performance and large capacities.

SanDisk Memory Stick PRO cards are expected to be available in February 2004 with capacities that range from 256MB to 2GB and suggested list prices from $100 to $1,000.

SanDisk-manufactured Memory Stick PRO Duo cards are expected to be available Q1 2004 at a suggested list price of $104.99 and $224.99 for the 256MB and 512MB capacities respectively (Memory Stick Pro adapter included).

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. SanDisk cannot guarantee that it will succeed to manufacture competitively the Memory Stick PRO or Memory Stick PRO Duo. The company assumes no obligation to update the information in this release.