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Technology Stocks : WDC/Sandisk Corporation
WDC 152.20-3.7%Nov 4 3:59 PM EST
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To: Art Bechhoefer who wrote (10172)4/6/2000 9:04:00 PM
From: Ausdauer  Read Replies (1) of 60323
 
SanDisk's CompactFlash Patent Portfolio

I received a very cordial and informative response from the IR department at Simple Technology today clarifying the conflict arising from the statements contained in Lexar Media and Simple Technology SEC registration (S-1) statements. This is my understanding of the current state of affairs based on the information I received...

1) Simple Technology has NO CURRENT RELATIONSHIP with Lexar Media and does not incorporate any technology originating from Lexar Media. Simple Technology does not "re-label" any products of Lexar Media origin.

2) Simple Technology's current owners purchased the solid state division of Cirrus Logic and renamed the resulting company "Lexar" some time in 1996. Thereafter, these owners financed the operations of Lexar until 1998 when the investment was divested.

3) Simple Technology's current owners sold 10% of their company to Toshiba in 1997 and the remaining interest to the "employees" of Lexar Media at the time of divestiture in late 1998.

4) Simple Technology's current owners has not engaged Lexar Media since late 1998 corresponding to the time the company was sold.

5) Simple Technology utilized controller technology originating from Lexar Media during a very brief period of time in 1998 only.

6) Simple Technology currently utilizes flash chips and controllers for CompactFlash originating from Hitachi. Simple Technology pays royalties related to SanDisk's IP indirectly to SanDisk as they relate to licenses obtained by Hitachi. ("We only use products strictly licensed...[to Hitachi]...by SanDisk.")

7) Simple Technology owns a variety of patents which make up their own IP related to CompactFlash and defends these patents vigorously. They are sympathetic to SanDisk's current difficulties relating to potential infringements of SanDisk's intellectual properties.

8) Simple Technology recognizes SanDisk as the leader in the flash industry and has no conflicts with them. (I interpret this to mean that no issues related to CF patent litigation is anticipated.)

9) Simple Technology, to their knowledge, is the only manufacturer of CompactFlash that builds 100% of their CompactFlash cards locally here in the USA.

Ausdauer
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