SanDisk and Skype Announce Pocket-Sized Internet Video Calling On Smart Drives

Preloaded SanDisk U3 Cruzer Smart Drives Let Consumers Make Skype Voice and Video Calls Around the World

MILPITAS, Calif. and LUXEMBOURG , July 10, 2006 – SanDisk® Corporation (NASDAQ: SNDK), the world’s largest supplier of flash memory card storage products, and Skype™, the global Internet communications company, have announced that Skype users can now make free calls and chat on almost any PC without having to download software. The Skype software will now come pre-loaded on SanDisk’s newest Cruzer® Micro and Cruzer Titanium lines of Skype-certified U3™ enabled smart drives. This will allow consumers to make free PC-to-PC audio and video calls to Skype users in most major markets.

SanDisk’s Cruzer Micro and Cruzer Titanium with U3 gives users a portable way to carry files and programs without leaving any personal information behind on a computer. This means Skype users can take their Skype account complete with their contacts, settings and preferences on a device that is smaller than a pack of chewing gum and make calls, with video as an option, from any PC such as those in Internet cafes and hotels. This compact Skype is particularly useful for business travelers, leisure travelers, students and anyone who uses multiple computers.

“Skype likes to partner with the brightest and best in their industries,” said Saul Klein, vice president of marketing for Skype. “SanDisk is an excellent addition to the growing Skype ecosystem of partners and will allow us to reach an entirely new set of Skype users.”

The U3 platform, which allows a variety of applications to be loaded onto a flash drive, is a standard feature on all capacities of SanDisk’s latest versions of its Cruzer Micro and Cruzer Titanium USB smart drives.

“SanDisk sees the U3 platform as the next major step in mobile computing,” said Carlos Gonzalez, senior director of USB for SanDisk. “The Cruzer Micro and Cruzer Titanium with U3 will enable people to carry around, on a small, convenient USB flash drive, their complete personal desktop with all their favorite U3 smart applications, settings and contacts and allow them to work on any PC, wherever they go. Skype is such a convenient communication tool for professionals and the whole mobile generation that it has become an essential part of their work and digital lives. So we are proud to announce that we have established a close cooperation with Skype, enabling us to include the software exclusively on our Cruzers.”

The new drives will display the Skype logo on the packaging and will feature one free month of Skype voicemail for the mobile user to get messages from their Skype calls even when on the go. The SanDisk Cruzer Micro with Skype preloaded is available at retail outlets in U.S. and Europe, including Skype’s online store, for suggested retail prices ranging from $39.99 to $199.99. Capacities are 512 megabytes (MB), 1 gigabyte (GB), 2GB and 4GB*. SanDisk Cruzer Titanium with Skype comes in 1GB and 2GB, at suggested prices of $74.99 and $119.99 respectively, and is now shipping in most major markets.

Skype is one of four productivity software tools bundled on SanDisk’s newest Cruzer Micro and Titanium flash drives. The U3 technology provides a resident environment for applications that operate directly from the flash drive. Other U3-compatible programs on the SanDisk drives offer anti-virus, file synchronization and password management functions. U3 applications work with any PC using Microsoft Windows XP or 2000 operating systems.**

About Skype
Skype is the world’s fastest-growing Internet communication offering, allowing people everywhere to make unlimited voice and video communication for free between the users of Skype software. Skype is available in 27 languages and is used in almost every country around the world. Skype generates revenue through its premium offerings such as making and receiving calls to and from landline and mobile phones, as well as voicemail and call forwarding. Skype also has relationships with a growing network of hardware and software providers. Skype is an eBay company (NASDAQ: EBAY). To learn more visit skype.com.

Skype is not a replacement for your ordinary telephone and cannot be used for emergency calling.

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 Milpitas , CA and has operations worldwide, with more than half its sales outside the U.S.

* 1 megabyte (MB) = 1 million bytes; 1gigabyte (GB) = 1 billion bytes. Some of the listed capacity is used for formatting and other functions, and thus is not available for data storage.

** U3 functionality is not supported under Mac OS (any version, but device is MSC).

SanDisk’s product images can be downloaded from http://www.sandisk.com/corporate/media.asp

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

SanDisk, the SanDisk logo and Cruzer are trademarks of SanDisk Corporation, registered in the United States and other countries. Skype is a registered trademark of Skype Technologies S.A .. U3 is a trademark of U3, LLC. Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder (s).

Contact Information

Ken Castle

SanDisk® Corporation

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