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SanDisk Introduces A 4-Gigabyte SDHC Flash Card - The Industry's Highest Capacity SD Card
New Large-Capacity Cards Are Ideal For Digital Video Or Still Cameras; SanDisk Bundles 4GB SDHC Cards With Free MicroMate USB 2.0 Reader

MILPITAS, CA, July 17, 2006 - SanDisk ® Corporation (NASDAQ: SNDK) today introduced a 4-gigabyte (GB)1 SD High Capacity (SDHC ™) card. The new cards, which support capacities of 4GB and higher, are rated Class 2 for speed and performance and can store more than 2,000 high-resolution pictures, more than 1,000 digital songs or up to 8 hours of MPEG 4 video2.

The 4GB SDHC card will be bundled with the MicroMate ™ USB 2.0 reader at no extra charge. These new readers work with both SDHC and SD cards. SDHC cards require an SDHC-compatible reader.

SDHC is the new designation for SD cards larger than 2GB that adhere to the SD 2.00 specification, a completely new design that is required for cards and hosts to support 4GB to 32GB capacities. The specification was developed by the SD Association, an industry standards board, which also defined three speed classes for speed and performance capabilities. These cards adhere to the SD Speed Class Rating specification which defines a minimum sustained transfer speed for SDHC cards3.

Susan Park, retail product marketing manager at SanDisk said, "Demand for high capacity cards continues to increase as storage-intensive applications such as digital cameras and digital video camcorders capable of taking high-resolution pictures and recording high-quality video clips come into the mainstream."

Though standard SD and SDHC cards look identical in size and shape, only SDHC-compatible products will be able to accept the new SDHC cards. SanDisk differentiates its new cards with the new SDHC logo on the card and retail package.

Chris Chute, research manager at IDC, said, "Consumers are beginning to demand next-generation image and video capture features in smaller devices. SDHC, while only supported by a few manufacturers and camera models now, is sure to be adopted by the imaging market as HD video recording and higher-resolution photography necessitates larger capacities."

Wes Brewer, vice president of consumer product marketing at SanDisk, said, "In order to provide the easiest and most compatible solution for 4GB and larger capacity SDHC cards in the market, SanDisk chose to bundle its new MicroMate USB 2.0 SD/SDHC compatible card reader, which normally retails for $19.99, with this new card. We are confident that our customers will have the best user experience and highest value-dollar for dollar-anyone can offer at this time."

Suggested Pricing and Availability

Capacities US$ Euros, Ex VAT Availability
SanDisk 4GB SDHC Bundle with MicroMate SDHC/SD
4GB + MicroMate USB 2.0 Reader $199.99 €159.99 July

For additional information, please visit SanDisk's website:

What is SDHC: http://www.sandisk.com/sdhc/SDHC.pdf

SDHC product information: http://www.sandisk.com/sdhc/

SanDisk is the original inventor of flash storage cards and is the world's largest supplier of flash data storage card products using its patented, high-density flash memory and controller technology. SanDisk is headquartered in Sunnyvale , CA and has operations worldwide, with more than half its sales outside the U.S.

SanDisk's web site/home page address: http://www.sandisk.com

SanDisk and the SanDisk logo are trademarks of SanDisk Corporation, registered in the U.S. and other countries. MicroMate is a trademark of SanDisk Corporation. SDHC and the SDHC logo are trademarks. Other brand names mentioned herein are for identification purposes only and may be trademarks of their respective holder(s). All trade names are either registered trademarks or trademarks of their respective holders.

1 1 gigabyte (GB) = 1 billion bytes.

2 Approximations based on compressed JPEG images on 4 MP camera (pictures); 4 minute songs at 128 kbps MP3 (songs) and 8 hours of Super Fine MPEG 4 video (320 x 240, 1Mb/sec.) (video). Actual numbers may vary.

3 The 4GB SanDisk SDHC card is rated Class 2, a guaranteed minimum data-transfer rate of 2MB/sec. This rate is guaranteed based on the conditional access method specified by SD physical specifications.

This press release contains certain forward-looking statements, including expectations for new product introductions, applications, markets, and customers that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Risks that may cause these forward-looking statements to be inaccurate include among others: market demand for our products may grow more slowly than our expectations or there may be a slower adoption rate for these products in new markets that we are targeting, and the other risks detailed from time-to-time in our Securities and Exchange Commission filings and reports, including, but not limited to, Form 10-K and our quarterly reports on Form 10-Q. We do not intend to update the information contained in this press release.

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