Combination of X3 and 32 nanometer Represents Breakthroughs in Size and Density; Significantly Reduces Manufacturing Cost While Maintaining Performance

• Will allow for higher capacity of microSD cards not possible with existing technologies

• Maintains performance levels of 43nm process technology due to SanDisk’s advanced All Bit-Line (ABL) architecture and 32nm process technology advancements

ISSCC CONFERENCE, SAN FRANCISCO, CALIF., Feb. 10, 2009 — SanDisk Corporation (NASDAQ: SNDK) and Toshiba Corporation today announced the co-development of multi-level cell (MLC) NAND flash memory using 32-nanometer (nm) process technology to produce a 32-gigabit (Gb) 3-bits-per-cell (X3) memory chip. The breakthrough introduction is expected to quickly bring to market advanced technologies that will enable greater capacities and reduce manufacturing costs for products ranging from memory cards to Solid State Drives (SSD).

“The development of our third-generation 3-bits-per-cell technology on 32nm within one and a half years after the introduction of the first generation of 3-bits-per-cell on 56nm shows the incredibly fast pace necessary to be a world-class producer in today’s industry,” said Sanjay Mehrotra, co-founder and president, SanDisk. “This allows us to offer higher capacities at compelling form factors while reducing manufacturing costs – all helping to expand our various product lines. This new development highlights SanDisk’s deep level of technical expertise and innovation that ultimately benefits consumers.”

32nm X3 Technology—Ideal for microSD Applications
The 32Gb X3 on 32nm technology is the smallest NAND flash memory die reported so far, able to fit into the fingernail-sized microSD™ memory card format that has enjoyed widespread adoption in mobile phones and other consumer electronics devices. The 32nm 32Gb X3 is the highest density microSD memory die in the world, providing twice the capacity of a microSD chip on 43nm while still maintaining a similar die area. Advances in 32nm process technologies and in circuit design significantly contributed to a 113mm2 die-size while SanDisk’s patented All-Bit-Line (ABL) architecture has been a key enabler to maintain a competitive X3 write performance.

“The 32nm X3 die’s small footprint and incredible density will allow for the production of higher capacities of microSD cards than could be manufactured without this technology,” said Yoram Cedar, executive vice president, OEM business unit and corporate engineering, SanDisk. “The microSD form factor has grown in popularity due to rising demand for high capacity storage on mobile phones, and X3 will enable us to bring exciting new products to this market.”

Based On Key SanDisk Technologies
32nm is the most advanced flash memory technology node to date, requiring advanced solutions to manage the challenges of feature size scaling. 32nm technology combines several innovative technologies to reduce die area more aggressively than the trend-line of Moore’s Law.

“32nm technology builds upon SanDisk’s successful deployment of immersion lithography in 43nm to implement spacer process without incurring additional investment in capital-intensive lithography equipment,” said Klaus Schuegraf, vice president, memory technology, SanDisk. “SanDisk brings its industry-leading 64-bit NAND string length to 32nm, while compensating for bit-to-bit interference effects with innovative programming algorithms and system design.”

SanDisk and Toshiba today presented a joint paper on 32nm 32Gb X3 NAND flash memory at the 2009 International Solid State Circuits Conference (ISSCC), highlighting the technical advancements that made 32nm possible. Production for the 32nm 32Gb X3 is expected to begin in the second half of 2009.

About SanDisk
SanDisk Corporation, the inventor and world’s largest supplier of flash storage cards, is a global leader in flash memory – from research, manufacturing and product design to consumer branding and retail distribution. SanDisk’s product portfolio includes flash memory cards for mobile phones, digital cameras and camcorders; digital audio/video players; USB flash drives for consumers and the enterprise; embedded memory for mobile devices; and solid state drives for computers. SanDisk (www.sandisk.com/corporate) is a Silicon Valley-based S&P 500 company, with more than half its sales outside the United States.

SanDisk’s product and executive images can be downloaded from http://www.sandisk.com/corporate/media.asp
SanDisk’s web site/home page address: http://www.sandisk.com

SanDisk and the SanDisk logo are trademarks of SanDisk Corporation registered in the United States and other countries. The TrustedFlash mark is a trademark of SanDisk Corporation. The SD mark is a trademark.
Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder (s).

This press release contains certain forward-looking statements, including expectations for technological advancements, new product introductions, manufacturing timelines and efficiencies, lower costs, applications, markets, and customers that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Risks that may cause these forward-looking statements to be inaccurate include among others: unexpected delays, or difficulties in producing 32nm X3 NAND, new products may not be released when or in the capacities expected, higher than expected manufacturing costs, market demand for our products may grow more slowly than our expectations or there may be a slower adoption rate for these products in new markets that we are targeting, our products may not perform as expected and the other risks detailed from time-to-time in our Securities and Exchange Commission filings and reports, including, but not limited to, our most recent annual report filed on Form 10-K and our subsequent Quarterly Reports filed on Form 10-Q. We do not intend to update the information contained in this press release..