Ritz Camera to Launch "Ritz Big Print Digital Film by Lexar Media" Brand

FREMONT, Calif., May 24, 2001 -- Lexar Media, Inc. (NSDQ: LEXR), a leading designer, developer and marketer of high-performance digital film memory cards and connectivity products for digital photography and electronics, today announced a comprehensive distribution and marketing agreement with Ritz Camera Centers, Inc., the nation’s largest photo retailer with about 1,000 locations in 47 states. Under the agreement, the two companies will jointly develop a co-branded CompactFlash™ and SmartMedia™ digital film and card reader product line under the “Ritz Big Print Digital Film by Lexar Media” brand name. Ritz Camera has also agreed to distribute Lexar Media branded Memory Stick™, MultiMediaCards™, SD™ cards and card readers at Ritz Camera Centers throughout the U.S. and online at www.ritzcamera.com.

“Ritz is a leader in the photo retailing industry and I expect that they will be a top seller of digital film in the U.S. I am delighted they have selected Lexar Media as the right brand and partner for such a close business relationship,” said John Reimer, president and CEO of Lexar Media. “Ritz has always prided itself in providing quality photographic products and services from leading brand names, making the selection of Lexar Media an honor we are all proud of.”

Ritz will also distribute Lexar Media’s Professional Series high speed CompactFlash Digital Film to meet the requirements of their professional customers. Lexar Media’s Professional Series USB-enabled CompactFlash is the highest speed-rated CompactFlash product available today.

“Lexar Media is the only company to offer all formats of digital film and is known as the brand serious and professional photographers can rely on,” said David Ritz, CEO of Ritz Camera Centers. “As we respond to our customers’ needs in digital photography, it becomes more important than ever to develop a dedicated digital film program by partnering with a company focused on digital photography with the same level of quality and service as Ritz. That’s why Lexar Media is our partner of choice.”

About Lexar Media, Inc.

Lexar Media, Inc. (NSDQ: LEXR) is an award-winning designer, developer, marketer and licenser of award-winning digital film, removable storage, connectivity and controller technology solutions for digital photography and adjacent markets. A digital media storage innovator, Lexar Media was the first company to develop and advance proprietary read-write speed standards for its line of USB-enabled CompactFlash cards. Lexar Media brands digital film and removable storage in the industry's most popular formats, plus an array of digital media readers. The Company offers “Shoot & Share” image browsing and editing software, an online photofinishing service at Printroom.com and a Web-based educational digital photography site at SayCheese.com. Headquartered in Fremont, California, Lexar Media also has offices in London and Tokyo. For more information, please call 1-800-789-9418 or visit www.digitalfilm.com.

About Ritz Camera Centers, Inc.

Ritz Camera Centers, Inc. is the nation’s largest photo specialty store chain with about 1,000 stores throughout the United States. Ritz Camera Centers offers one-hour photofinishing through its Ritz Big Print Central departments, as well as digital imaging, cameras, film and related products. Ritz Camera also sells binoculars and cellular phones, among other items. For more information, visit www.ritzcamera.com. The Company’s ritzcamera.com, a phobo.com interactive site, is the premier online shopping source for photographic products and equipment. Focusing on providing the consumer with comprehensive photography support, ritzcamera.com offers low prices, world-class customer satisfaction and the best photo retail selection.

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the safe harbor created by those sections. These forward-looking statements include statements related to the anticipated benefits of Lexar Media’s relationship with Ritz Camera Centers. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements. These risks include that the growth and success of Lexar Media’s business depends on its ability to develop and maintain strategic relationships necessary to develop, sell and market products that are commercially accepted and Lexar Media’s business will not succeed unless the digital photography market continues to grow and is accepted by professional, commercial and consumer users. Readers should also refer to the risk factors described in Lexar Media’s filings with the Securities and Exchange Commission including its Annual Report on Form 10-K for its fiscal year ended December 31, 2000, filed with the Commission on April 2, 2001. Lexar Media assumes no obligation to update the forward-looking information contained in this news release