Lexar Media Announces that Judge Orders SanDisk to Perform Reverse Engineering to Confirm Basis for Continuing Patent Lawsuit

Business Wire, August 28, 1998

FREMONT, Calif.--(BUSINESS WIRE)--Aug. 28, 1998--Lexar Media announced that on Aug. 24, 1998 the Honorable Judge Charles Breyer ordered SanDisk to perform a reverse engineering of a Lexar Media CompactFlash card product.

The purpose of the reverse engineering analysis is for SanDisk to confirm it has a sufficient basis for continuing its patent infringement lawsuit against Lexar.

The judge has also agreed with Lexar Media's request for an accelerated timetable. "It is our desire to resolve this matter as soon as possible. We believe we have exceptional proprietary technology and great products and would like to focus our efforts battling in the marketplace, rather than in the courts. We are pleased that the judge has agreed to an accelerated timetable and we're anxious to show that we do not infringe SanDisk's patent," said John Reimer, president and CEO of Lexar Media.

"SanDisk publicly stated at an industry trade association meeting that they had not reversed engineered our product before they filed a lawsuit against us. We felt this was unfair so we asked the court for sanctions. While the judge did deny our request for sanctions at this time, he did so without prejudice, and he ordered SanDisk to perform reverse engineering," continued Reimer.

Lexar Media, the technology leader in High Performance Digital Film(TM), designs, develops and markets a complete line of removable digital film and connectivity products. The company's CompactFlash and SmartMedia products are distributed through the consumer retail and OEM channels. The company is headquartered in Fremont, Calif.

    CONTACT: Lexar Media, Fremont
              Robert Netter
              510/413-1236