Just for Info:
Wednesday May 26, 7:03 pm Eastern Time
Company Press Release
SanDisk Denies Accusations Filed by
Lexar Media in Court Complaint
SUNNYVALE, Calif.--(BUSINESS WIRE)--May 26, 1999--SanDisk
Corporation
(Nasdaq:SNDK - news) today denied all allegations in a complaint filed
by Lexar Media Inc. in
U.S. District Court charging SanDisk with unfair competition, false
advertising, trade libel and
interference with Lexar's business.
Nelson Chan, SanDisk vice president of marketing, said, ''The
complaint has absolutely no merit
and we will ask the court to dismiss the case. Despite its significant
advertising campaign, Lexar
has been unable to successfully compete against SanDisk in the
marketplace so it is trying to
succeed against SanDisk in the courts.''
Among the allegations, Lexar cited a test conducted in the SanDisk
compatibility lab in which the
performance and speed of Lexar and SanDisk
CompactFlash(TM)(CF(TM)) cards was
compared in various new digital cameras. The SanDisk cards were
faster than the Lexar cards in
all five consumer cameras tested. Lexar claimed that the results, which
were made public, are
false.
Chan said, ''Our testing is valid. It seems like Lexar is ignoring the fact
that we have significantly
improved the performance of our CompactFlash cards over time. We
stand by our test results.''
Lexar also claimed that a new type of CompactFlash card that it has
recently introduced has been
unable to get certification and approval from the CompactFlash
Association (CFA) and hence
cannot carry the CFA logo. Lexar claimed that the organization ''is
effectively controlled by
SanDisk.''
Chan said, ''The whole purpose of the CFA is to establish an
independent body representative of
all industry participants to ensure complete compatibility of all
CompactFlash products so that
consumers can feel protected from purchasing non-compliant cards.
Lexar is seeking to bypass
the CFA standard process. SanDisk is just one of 133 companies that
belong to the association.
Just last week, the CFA executive membership voted overwhelmingly
not to allow any products to
carry the CFA compliance logo until the products have been properly
reviewed by the CFA.''
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, Calif.
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: CompactFlash and CF are trademarks of SanDisk
Corporation. SanDisk's web
site/home page address: sandisk.com
Contact:
SanDisk Corporation
Bob Goligoski, 408/542-0463
bgoligoski@sandisk.com
Nelson Chan, 408/542-0456
nchan@sandisk.com
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