COLOGNE, Germany, September 27, 2004 - Lexar Media, Inc. (Nasdaq: LEXR), a leading marketer and manufacturer of high-performance digital media and accessories, today at Photokina (Hall 1.2, Booth-058) introduced the ActiveMemory™ System, a technology designed to optimize digital photography workflow to achieve enhanced productivity in and out of the photo studio. The first products to support the ActiveMemory System are certain Professional CompactFlash™ cards, new Lexar Professional FireWire and USB 2.0 card readers, and Photo Mechanic™ 4.5 professional image browsing software.

At the center of the ActiveMemory System are ActiveMemory-enabled Professional CompactFlash cards that can store user preferences and host device settings in a protected area on the card. These settings can only be modified by the host application that created them and can be used to auto-configure multiple ActiveMemory-enabled products within the system. These settings are preserved even when the card is formatted or other data files on the card are deleted, because the ActiveMemory data is stored outside the standard DOS file structure on the card.

"Imagine a card that contains its owner's name and image preferences," said John Omvik, director of professional product marketing, Lexar. "Images downloaded from the card can be automatically appended with the photographer's copyright information, search keywords and caption information. In the future, photographers can also have confidence knowing that the camera is configured the way they expect, because their preferred settings are automatically loaded when the card is inserted in an ActiveMemory-enabled camera."

While many cameras and software applications already allow users to save favorite settings, storing this information on a memory card is unique because it allows for the immediate transfer of established information and improves multi-user or multi-device working environments.

ActiveMemory Software Applications
Photo Mechanic 4.5, an upcoming version of Photo Mechanic professional image browsing software, will feature ActiveMemory technology that allows users to store download preferences and IPTC captioning, including copyright information and database keywords. When an ActiveMemory-enabled card is inserted in the new Lexar Professional CompactFlash reader, Photo Mechanic automatically launches and begins to download the images on the card. During the download process the IPTC information is automatically appended to each image.

ActiveMemory will enable photographers to change the sequence of traditional workflow by eliminating redundant and repetitive manual tasks like captioning, adding search keywords and copyright information from the post-processing stage.

ActiveMemory Camera Applications
Digital cameras can also use the ActiveMemory technology to store user preferences and other camera-specific set-up parameters, such as CSM settings, on the card. This information can be used to quickly configure a camera to a known and trusted state, or for specific shooting conditions.

Today's professional digital SLR cameras are feature-rich with multiple pages of menu and set-up options. While this provides professionals with maximum flexibility, it can also increase the possibility for user error. This is particularly true when cameras are shared among multiple photographers or with rental equipment. Users of ActiveMemory-enabled cameras will be able to plug in the card and be confident that the camera is ready to go the way they expect it.

"For professional photographers, there is nothing worse than losing a shot," said Kevin Gilbert, professional photojournalist and president of Blue Pixel. "But it is even more frustrating when it could have been avoided because the photographer or his editor was unaware that critical settings were changed on the camera. ActiveMemory-enabled cameras will give all photographers peace of mind, knowing that their preferred settings are stored on their cards and established on their camera. It will help us so much in the field."

The Future of ActiveMemory
ActiveMemory technology will have other applications beyond professional digital photography. Any software or host application that uses flash memory and can benefit from automating or configuring tasks, based on reading software settings or user preferences that reside in a protected area on a memory card, could benefit from this technology.

ActiveMemory-enabled CompactFlash cards, card readers and Photo Mechanic 4.5, will be available in Q4 2004. For more information, specifications and a white paper, please visit www.lexar.com/activememory

About Lexar Media, Inc.
Lexar is a leading marketer and manufacturer of flash memory cards, USB flash drives, card readers and ATA controller technology for the digital photography, consumer electronics, industrial and communications markets. The company holds over 76 issued or allowed controller and system patents, and licenses its technology to companies including Olympus, Samsung Electronics, SanDisk Corporation and Sony. For more information, please call 1-800-789-9418 or visit www.lexar.com

Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements which are subject to the safe harbor provisions of the Private Litigation Reform Act of 1995. These statements include statements related to the benefits of and consumer demand for Lexar's products and the growth opportunities available to Lexar. These forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those anticipated by these forward-looking statements. These risks include that the growth and success of our business depends on our ability to achieve and maintain technology leadership, and sell and market products that are commercially accepted. Readers should also refer to the risk factors described in our filings with the SEC, including our most recently filed Form 10-K and Form 10-Q. We assume no obligation to update the information in this release.