LAS VEGAS, January 3, 2006 -- Lexar Media, Inc. (NASDAQ: LEXR), a leader in advanced digital media and accessories, today announced plans to add a unique storage capacity meter to its popular USB flash drives by integrating an innovative electronic paper display from E Ink Corporation. The E Ink display is a paper-thin, shatter proof, easy to read meter that does not rely on power to show the capacity information when disconnected from the computer. On display at the 2006 International Consumer Electronics Show (CES), Lexar JumpDrive® Mercury will be the first USB flash drive to feature the on-board non-volatile smart capacity meter that will let customers easily monitor their available storage capacity.

"E Ink's display products are paper-thin, low-power and ideal for a wide range of products from smart mobile devices to simple indicators such as those offered by Lexar," said Darren Bischoff, E Ink Senior Marketing Manager. "Lexar's JumpDrive is a great example of a product truly capable of leveraging all the benefits of our E Ink On Display™ solution. With this widespread commercial implementation of our technology, Lexar will be the highest volume provider of products with electronic paper displays."

Thinner than a credit card at less than 0.7mm, E Ink's rugged bar graph display is an all-plastic construction that does not require a battery to maintain the display of the available storage capacity on the JumpDrive. This makes it possible for Lexar to add the benefit of an exterior gauge, without sacrificing the light, durable and portable design of its products. In addition, the integrated capacity meter on JumpDrive Mercury will be a fully contained solution that automatically discovers the available capacity and updates the display without involving any host software.

"Innovation continues to be the dominate focus for Lexar's popular line of USB flash drives, which helps us offer customers cool features based on revolutionary technologies like the On Display solution from E Ink," said Steffen Hellmold, vice president and general manager USB flash drive and OEM products business unit, Lexar. "JumpDrive Mercury will be the first product in Lexar's line that demonstrates the results of our partnership with E Ink."

E Ink's display technology uses black and white particles that are contained in tiny clear capsules. Once set to an image, the display reflects light just like ordinary paper. This makes it readable even in difficult conditions such as direct sunlight and is perfect for those trying to catch a glimpse of their remaining storage on the go.

Lexar will showcase its broad line of flash based technology and solutions, including JumpDrive Mercury, at CES, South Hall Booth #30723.

About Lexar Media, Inc.
Lexar is a leading marketer and manufacturer of NAND flash memory products including 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 92 issued or allowed controller and system patents, and licenses its technology to companies including Olympus Corporation, Samsung Electronics Co., Ltd., SanDisk Corporation and Sony Corporation. Lexar sells its memory cards worldwide and through an exclusive agreement, also sells memory cards under the Kodak brand. Headquartered in Fremont, California, Lexar has operations in countries around the world. More information is available at www.lexar.com.

About E Ink Corporation
E Ink Corporation is the leading supplier of electronic paper display (EPD) technologies. Products made with E Ink's revolutionary electronic ink technology possess a paper-like high contrast appearance, ultra-low power consumption, and a thin, light form. E Ink's technology is ideal for many consumer and industrial applications spanning handheld devices, watches, clocks, and public information displays and promotional signs. E Ink is a private corporation that includes among its investors and strategic partners TOPPAN Printing Company, Royal Philips Electronics, The Hearst Corporation, Intel Capital, CNI Ventures, a division of Gannett Co., Inc, Air Products and Chemicals, Inc., Vossloh Information Technologies, and Motorola, Inc. E Ink news can be found at www.eink.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 and availability of, and consumer demand for, Lexar's products, including JumpDrive Mercury, 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, among others, uncertainties related to competitive pressures; and that the growth and success of our business depends on our ability to achieve and maintain technology leadership, and to develop, 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.
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Lexar, JumpDrive and the Lexar logo are trademarks of Lexar Media, Inc. All other brand or product names are trademarks or registered trademarks of their respective holders.