To: Dealer who wrote (32263 ) 9/7/2000 10:57:53 PM From: Dealer Respond to of 35685 SNDK--SOURCE: Lexar Media, Inc. Lexar Media Files Patent Infringement Complaint Against SanDisk Corporation FREMONT, Calif., Sept. 7 /PRNewswire/ -- Lexar Media, Inc. (Nasdaq: LEXR - news) today announced that it has filed a patent infringement lawsuit against SanDisk Corporation (Nasdaq: SNDK - news) alleging that SanDisk infringes one of Lexar's key patents. The patent infringement complaint was filed in United States District Court, District of Delaware. Lexar's President John Reimer stated, ``Lexar has core technology on flash products that we have to protect. We tried to resolve our disputes with SanDisk outside of Court, but as those efforts have failed, we are forced to defend our intellectual property. We are currently looking closely at a number of other SanDisk products as well.'' Lexar Media is seeking preliminary and permanent injunctive relief and damages for its patent infringement claim. About Lexar Media Lexar Media designs, develops and markets a complete line of removable and reusable digital film in the four most popular industry formats: CompactFlash, Memory Stick, SmartMedia and PC Cards. The Company also offers easy-to-use connectivity products to transfer photographic images to the computer. Lexar's business unit, PrintRoom.com(TM), provides online photo-finishing services. Lexar Media is headquartered in Fremont, California and has offices in the England and Japan. Information on Lexar can be obtained through its toll-free number 800-789-9418 or by accessing www.digitalfilm.com. Cautionary Note Regarding Forward-Looking Statements This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the safe harbor created by those sections. These forward-looking statements include statements related to Lexar's present and future litigation with SanDisk. These forward-looking statements involve a number of risks and uncertainties that could cause the actual results of these efforts to differ materially from those anticipated by these forward-looking statements. These risks include that Lexar is currently involved in litigation with SanDisk which could require Lexar to pay significant damages and royalties and could enjoin the Company's from making, selling or using products held to infringe SanDisk's patent, and that additional litigation with SanDisk could divert management's time and attention, could be time consuming and expensive and could threaten the Company's viability if it were to lose. Readers should also refer to the risk factors described in Lexar's registration statement on Form S-1 declared effective by the Securities and Exchange Commission on August 14, 2000. Lexar assumes no obligation to update the forward-looking information contained in this news release. NOTE: Lexar Media and the Lexar logo 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. SOURCE: Lexar Media, Inc.