SanDisk Files Patent Suit Against STMicroelectronics

SUNNYVALE, Calif.—(BUSINESS WIRE)—Dec. 6, 2005— SanDisk(R) Corporation (Nasdaq: SNDK), the world's largest supplier of flash card storage products, filed a patent lawsuit today in the Northern District of California against STMicroelectronics, Inc. asserting that STMicroelectronics' NAND and NOR flash memory chips infringe SanDisk's U.S. Patent No. 5,991,517, entitled "Flash EEprom System With Cell by Cell Programming Verification."

E. Earle Thompson, Chief Intellectual Property Counsel, said, "SanDisk has developed a fundamental patent portfolio in the flash memory industry. SanDisk possesses hundreds of patents covering all aspects of flash memory design from semiconductor devices to integrated systems. SanDisk will vigorously protect its intellectual property against companies who seek to use SanDisk technology without a license."

On December 5, 2005, the United States International Trade Commission issued an order in Investigation No. 337-TA-526, entitled "Notice of Commission Decision to Review in Part an Initial Determination, and on Review, to Take No Position Concerning Certain Validity Issues and to Affirm the Administrative Law Judge's Determination that there is No Violation of Section 337; Termination of Investigation." The Commission order affirms the October 19, 2005 finding by an Administrative Law Judge that certain STMicroelectronics NAND flash memory chips do not infringe three claims of U.S. Patent 5,172,338. The Commission order terminates the ITC case between SanDisk and STMicroelectronics.

With respect to the Commission order, Mr. Thompson said, "SanDisk is disappointed that the Commission declined to review the Initial Determination and respectfully but strongly disagrees with the Commission's order. SanDisk intends to appeal the decision to the United States Court of Appeals for the Federal Circuit. SanDisk believes that the order incorrectly interpreted the claims of the patent and that it has a strong basis for appeal."

Forward-Looking Statements

This news release contains certain forward-looking statements that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate and may significantly and adversely affect our business, financial condition and results of operations.

About SanDisk

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.

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SanDisk and the SanDisk logo are trademarks of SanDisk Corporation, registered in the U.S. and other countries.

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