SanDisk and Samsung Renew Patent Cross License and Flash Supply Agreements

MILPITAS, Calif. & SEOUL, Korea--(Business Wire)--
SanDisk® (NASDAQ:SNDK) and Samsung Electronics Co., Ltd. announced today that
they signed a definitive agreement to renew the cross license of their
semiconductor patent portfolios. In addition, the companies signed a flash
memory supply agreement under which Samsung will continue to make available to
SanDisk a guaranteed portion of its flash memory production output. The new
agreements become effective when the current cross license and supply agreements
expire on August 14, 2009, and will run for seven years from that date.

The new patent cross-license agreement includes rights to each party`s patents
broadly covering multi-level cell flash memory and flash storage systems, but
does not license either party`s patent claims specific to 3-D memory technology.
Over the life of the new license, the estimated effective rate of the fixed
payments and royalties is expected to be approximately half of the effective
rate in recent years under the current license. Financial terms of the
agreements were not disclosed.

"We are very pleased with the agreements announced today. We believe that they
represent good value for our stockholders and enable both parties to focus on
the growth markets at hand. We are excited about our opportunities in mobile,
computing and consumer flash storage markets. Furthermore, continued access to
Samsung`s flash capacity under competitive terms gives us greater flexibility in
managing our future capital expenditures for captive capacity. We look forward
to a constructive relationship with Samsung in the years ahead." said Dr. Eli
Harari, chairman and chief executive officer, SanDisk.

"The renewal agreements enable Samsung and SanDisk to each focus their energies
on restoring flash market growth. It is clear that these renewal agreements are
aimed at strengthening the on-going business relationship between Samsung and
SanDisk, and we are pleased that the two companies have worked hard to achieve a
significantly improved balance on the patent license." said Dr. Oh-Hyun Kwon,
president of the Semiconductor Business, Samsung Electronics.

SanDisk`s Investor Conference Call

SanDisk will hold a brief conference call today for its financial analysts and
investors at 2:30 p.m. PDT/5:30 p.m. EDT. To participate in the call, please
call +1 719-325-4775 with the following passcode: 8909494.

SanDisk`s Forward-Looking Statements

This press release contains certain forward-looking statements, including
statements about expectations regarding the benefits of the renewal license
agreement, the expected effective royalty rates thereunder, market opportunities
for flash memory including mobile, computing and consumer flash storage markets,
and the expected benefits of the flash memory supply agreement that are based on
SanDisk`s 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:
Samsung`s failure to perform its obligations under the license or supply
agreement, the size and growth rate of Samsung`s flash memory business, slower
than expected, or no, growth in market demand for flash memory products in
current and new markets, SanDisk`s ability to reduce its captive supply capital
expenditure requirements due to the supply agreement with Samsung, whether the
pricing terms under the supply agreement result in cost-competitive supply as
compared to other captive and non-captive sources, and other risks detailed from
time-to-time in SanDisk`s Securities and Exchange Commission filings and
reports, including, but not limited to, under the caption "Risk factors" and
elsewhere in SanDisk`s most recent annual report on Form 10-K and SanDisk`s
subsequent quarterly reports on Form 10-Q. The parties do not intend to update
the information contained in this release.

About SanDisk

SanDisk Corporation, the inventor and world`s largest supplier of flash storage
cards, is a global leader in flash memory - from research, manufacturing and
product design to consumer branding and retail distribution. SanDisk`s product
portfolio includes flash memory cards for mobile phones, digital cameras and
camcorders, digital audio/video players, USB flash drives for consumers and the
enterprise, embedded memory for mobile devices, and solid state drives for
computers. SanDisk (www.sandisk.com/corporate) is a Silicon Valley-based S&P 500
company, with more than half its sales outside the United States.

About Samsung Electronics

Samsung Electronics Co., Ltd. is a global leader in semiconductor,
telecommunication, digital media and digital convergence technologies with 2008
consolidated sales of US$96 billion. Employing approximately 150,000 people in
134 offices in 62 countries, the company consists of two business units: Digital
Media & Communications and Device Solutions. Recognized as one of the fastest
growing global brands, Samsung Electronics is a leading producer of digital TVs,
memory chips, mobile phones and TFT-LCDs. For more information, please visit
www.samsung.com.

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SanDisk Contacts:
Media Contact:
Ryan Donovan, +1 408 801 2857
ryan.donovan@sandisk.com
or
Investor Contact:
Jay Iyer, +1 408 801 2067
or
Samsung Contact:
Media Contact:
Reece Hwang, +82 2255 8278

Copyright Business Wire 2009