Lexar Media Announces Licensing Agreement With Sony Corporation; Lexar's High-Speed Flash Memory Controller To Enhance Sony's 'Memory Stick' Performance

Business Wire, Jan 6, 2000

Business Editors/High-Tech Writers

CES 2000, Booth No. 1765

LAS VEGAS--(BUSINESS WIRE)--Jan. 6, 2000

Lexar Media today announced that it has signed a Memorandum of Understanding (MOU) with Sony Corporation (NYSE:SNE) to commence the development of a high-speed Memory Stick(TM).

Under the terms of the agreement, Lexar Media will license its high-speed flash memory controller technology to Sony in order for Sony to substantially improve the read/write speed of the Memory Stick to download 64 megabytes of music (approximately 80 minutes of compressed music) in less than ten seconds. In addition, the agreement allows Lexar to license Memory Stick media specifications from Sony and thereby manufacture and market Memory Stick media.

Sony's Memory Stick is a digital storage transfer media that works in a wide variety of applications including digital cameras, audio/video product applications, and serves as an interface in a variety of computer/IT products. The new high-speed Memory Stick will be backward compatible with current Memory Stick products and is slated for introduction in 2001.

"Sony offers a number of Memory Stick compliant products such as Cyber-shot digital cameras, a Memory Stick Walkman portable stereo, VAIO personal computers and other devices for which the speed of the storage media is critical," said Yoshihide Nakamura, Senior Vice President, Sony Corporation. "We studied a number of options to enhance the Memory Stick. Lexar Media's high-speed controller technology can increase the read/write speed of the Memory Stick to make it the best suited media in the digital network era."

"Lexar's goal has always been to offer the fastest, largest capacity flash memory-based digital film cards in the industry, and we believe that Sony's decision to work with Lexar clearly validates our technology and leadership position," said John Reimer, President and CEO, Lexar Media. "Sony selected Lexar after carefully reviewing our technology and intellectual property portfolio. With Memory Stick added to our product lineup of USB-enabled CompactFlash, PC Cards and SmartMedia, Lexar is now well-positioned as a complete provider of digital film products."

"While CompactFlash and SmartMedia currently dominate the flash memory market among digital cameras, our user research shows that Sony is the most recognized name among those vendors providing memory for digital cameras," said Kevin Kane, Analyst, International Data Corporation. "This rapidly expanding market offers an opportunity for a variety of removable storage options. The agreement with Sony allows Lexar Media to offer the most widely used removable storage products to an even broader audience which includes customers for the existing Memory Stick product line."

Lexar's expertise in high-performance digital film products stems from its experience in supplying flash memory controllers to CompactFlash card manufacturers and marketing its own line of high-performance digital film. The Company has a rich portfolio of intellectual property that includes 15 U.S. granted patents, 15 U.S. patent applications and many foreign patent applications, and holds key patents on designs, processes and techniques that chip designers may need in order to build low-cost, high-speed flash storage products.

About Lexar Media

Lexar Media, the technology leader in High Performance Digital Film, designs, develops, and markets a complete line of removable digital film in the three most popular industry formats: CompactFlash, SmartMedia and PC Cards. The Company also offers easy-to-use connectivity products to transfer photographic images to the computer. Lexar Media is headquartered in Fremont, California and has a sales office in Tokyo. Information on Lexar can be obtained through its toll-free number 800/789-9418 or by accessing www.digitalfilm.com.

Note to Editors: Lexar Media, the Lexar logo, and High Performance Digital Film are trademarks of Lexar Media, Inc. Lexar Media Inc. is an authorized licensee of the CompactFlash trademark. All other brand or product names are trademarks or registered trademarks of their respective holders.