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Lexar Adds Corel Corporation's Digital Imaging Software to Line of Flash Memory Cards; Award-Winning Paint Shop(TM) Family Software to Enhance Value of Lexar Memory Cards

2006 International CES Jan. 3, 2006--Lexar Media, Inc. (Nasdaq:LEXR), a world leader in advanced digital media technologies, today announced that the company is adding further value to its widely popular lines of flash memory products by including digital imaging software from Corel Corporation -- valued at $30 to $100 per application -- to select flash memory cards in Lexar's Professional, Platinum and Value lines. The included software programs are Corel(R) Paint Shop Pro(R) 9, Corel(R) Photo Album(TM) 6 (Standard Edition) and Corel(R) Photo Album(TM) 6 (Starter Edition) -- all designed to help photographers of all levels enhance, edit and manage their images.


"While we are adding value to our total memory card package, we also are improving the digital imaging experience for a countless number of photographers," said Jim Gustke, vice president, memory card business unit, Lexar. "The free bundled software allows the user to accomplish a variety of popular image editing, managing and sharing tasks. Like so many of our photography products, the Corel applications will further improve the user's digital imaging workflow," he added.

Corel's Paint Shop Family software will be packaged with Lexar's CompactFlash(TM), Secure Digital(TM) (SD) and Memory Stick(TM) format flash memory cards within each product family. In early 2006, Paint Shop Pro 9 will be included with all Lexar Professional flash memory cards, while Paint Shop Photo Album 6 (Standard Edition) will be included with all Platinum flash memory cards. Customers purchasing cards from Lexar's Value line will receive Paint Shop Photo Album 6 (Starter Edition).

"Lexar's customer base is the primary target for Corel's digital imaging software products," said Blaine Mathieu, Corel's general manager of Digital Imaging. "Like Lexar, we deliver sought after applications for every photographer, from entry-level to professionals. Customers who value reliable, high-performance flash memory cards also value imaging software that improve their digital imaging experience," he added.

By adding Paint Shop Pro 9 to Lexar's Professional line of flash memory cards, the company is offering professional photographers an unprecedented digital imaging package. In addition to unequaled reliability and virtually instantaneous data write and read speed performance, Lexar's full line of Professional flash memory cards includes a comprehensive customer support and lifetime warranty. In addition, the cards include a full version of Image Rescue 2.0, Lexar's award-winning image recovery software and a trial version of Photo Mechanic(TM), the popular image browsing software application by Camera Bits.

Lexar will showcase its memory cards at CES, South Hall, Booth #30723.

About Lexar Media, Inc.

Lexar is a leading marketer and manufacturer of NAND flash memory products including memory cards, USB flash drives, card readers and ATA controller technology for the digital photography, consumer electronics, industrial and communications markets. The company holds over 92 issued or allowed controller and system patents, and licenses its technology to companies including Olympus Corporation, Samsung Electronics Co., Ltd., SanDisk Corporation and Sony Corporation. Lexar sells its memory cards worldwide and through an exclusive agreement, also sells memory cards under the Kodak(R) brand. Headquartered in Fremont, California, Lexar has operations in countries around the world. More information is available at www.lexar.com.

About Corel Corporation

Corel Corporation provides innovative software solutions that help millions of value-conscious businesses and consumers in over 75 countries improve their productivity. The Company is renowned for its powerful software portfolio that combines innovative photo editing and graphics creation, vector illustration and technical-graphics applications along with office and personal productivity solutions. Corel's flagship products include the CorelDRAW(R) Graphics Suite, the WordPerfect(R) Office Suite, the Corel(R) Painter(TM) Natural-Media(R) painting and illustration software and the Paint Shop Family of digital photography and image editing software. Founded in 1985, Corel is headquartered in Ottawa, Canada. For more information, please visit www.corel.com.

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements, which are subject to the safe harbor provisions of the Private Litigation Reform Act of 1995. These statements include statements related to the digital photography market, the benefits and availability of, and consumer demand for, Lexar and Corel products and the growth opportunities available to Lexar. These forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those anticipated by these forward-looking statements. These risks include that the growth and success of our business depends on our ability to achieve and maintain technology leadership, and develop, sell and market products that are commercially accepted. Readers should also refer to the risk factors described in our filings with the SEC, including our most recently filed Form 10-K and Form 10-Q. We assume no obligation to update the information in this release.

Lexar the Lexar logo are trademarks of Lexar Media, Inc. Corel, CorelDRAW, WordPerfect, Painter, Paint Shop and the Corel logo are trademarks or registered trademarks of Corel Corporation and/or its subsidiaries. All other product, font and company names and logos are trademarks or registered trademarks of their respective companies.

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