SanDisk's MultiMediaCards Will be Sold With New Compaq Personal Audio Player; SanDisk Flash Memory Cards To Provide Up To Two Hours Of Digital Playback

Business Wire, August 16, 2000

Business Editors/High-Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--Aug. 16, 2000

SanDisk Corporation (Nasdaq:SNDK) announced today that it will supply Compaq Computer Corporation (NYSE:CPQ) with its stamp-size MultiMediaCard for storage of compressed music files in Compaq's iPAQ Personal Audio Player PA-1. Beginning in September, two SanDisk 32-megabyte (MB) solid state MultiMediaCards will be provided with each PA-1.

The PA-1, introduced on August 15, is a hand-held device that enables users to rapidly download digital music files from the Internet through a USB interface to a PC, and plays back crystal clear digital audio sound, according to Compaq. The iPAQ PA-1 stores up to two hours of digital-quality music on the two 32MB cards and is compatible with multiple music formats, including MP3, AAC and Microsoft WMA.

"Through this alliance with Compaq, PA-1 users will enjoy listening to their favorite songs stored on SanDisk's MultiMediaCards," said Nelson Chan, senior vice president of worldwide sales and marketing at SanDisk. "Innovative products, such as the iPAQ PA-1, clearly demonstrate how our advanced flash memory solutions are making a new generation of ultra-portable consumer electronic products possible. We are pleased and honored by Compaq's selection of SanDisk as their flash card supplier for this exciting new platform."

Kevin Kyle, general manager, Internet and e-Tronics Division, Consumer Products Group, Compaq Computer Corporation, said, "With the help of SanDisk's compact, yet rugged MultiMediaCard, we were able to maintain the portable size and stylish design of the iPAQ PA-1 to meet the needs of digital music lovers with an active lifestyle. SanDisk's MultiMediaCards gave us the flexibility to minimize design space for storage and maximize space for cutting-edge features our consumers will enjoy."

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 company assumes no obligation to update the information in this release.

Note to Editors: All trade names are either registered trademarks or trademarks of their respective holder.

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