Company Now Sells SanDisk-Brand Flash Memory Cards And Accessories In Approximately 10,000 Retail Stores In 30 European Countries

BERLIN, GERMANY, August 27, 2001 - SanDisk Corporation (NASDAQ:SNDK) reported today that it has significantly expanded its retail presence in Europe and opened a large logistics distribution center in Europe to speed product deliveries to its retail distribution network. SanDisk officials made their comments at the Internationals Funk Ausstellung (IFA) trade show in Berlin where SanDisk is demonstrating products for the first time at the major consumer electronics event. (hall 3, second floor, booth 03-B).

The number of retail outlets in Europe that carry SanDisk-branded flash memory cards and accessory products has increased from 6,000 in January, 2000, to approximately 10,000 today. During the same time frame, the number of European countries where SanDisk products are sold has grown from 18 to 30 and includes additions such as Russia, Greece, Turkey, Ireland, Portugal, Poland, Croatia and the Ukraine.

Gerrit Van Hofwegen, EMEA (Europe, Middle East and Africa) sales manager, said, "Our retail expansion in Europe over the last 18 months has clearly helped SanDisk achieve its ranking as the world's largest supplier of flash memory cards. The markets for consumer electronics products, especially digital cameras, that use our flash cards and card readers has been strong across Europe. More and more retailers are stocking digital cameras and SanDisk memory cards on their shelves because they want to offer a more complete line of digital products from the world's premier supplier of flash cards. Europe also is leading the world in mobile phone development and retailers have discovered that flash memory cards can add new features to many of these phones and make them more attractive to consumers."

The SanDisk EMEA retail head office, located in the Netherlands, is further supported by retail sales offices located in England, Germany and France to help with expansion into new countries and new retail stores.

SanDisk also recently opened a logistics retail distribution center in Europe. Van Hofwegen explained that the center, located in Holland, "was established to provide European customer driven services. With the center, we can significantly shorten delivery times to stores and retail distributors and respond more quickly to changing product trends and customer requests."

One of the new products going into Europe for the first time this summer is the SanDisk Secure Digital memory card, a new stamp-sized, removable flash card targeted mainly for use in mobile phones, Internet music players and small-size digital cameras. More than 70 new products with slots for SD cards, including handheld computers such as Palm's 500 series, video and digital still cameras from brands such as JVC and Panasonic, mobile phones, audio players and notebook computers, have recently been introduced.

SanDisk Corporation, 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. The companies assume no obligation to update the information in this release.

SanDisk's web site/home page address: http://www.sandisk.com