Lexar Partners With MGM Studios for National “Be Cool with Lexar“ Sweepstakes Promotion

FREMONT, CA -- 1/3/2005 -- Lexar Media, Inc. (Nasdaq:LEXR), a leader in advanced digital media and accessories, today announced a national sweepstakes promotion tied to MGM Pictures’ upcoming film Be Cool, the sequel to Get Shorty, starring John Travolta and Uma Thurman. As part of the promotion, the Be Cool movie trailer will be loaded on select Lexar JumpDrive USB flash drive products.

Consumers and Retail Sales Associates Can Both Win

“Be Cool with Lexar” is a two-tiered promotion that will spotlight Lexar’s JumpDrive USB flash drives, memory card products and digital music players while allowing both consumers and retailers to participate in an exciting sweepstakes. Lexar’s promotion features the chance to win a variety of exciting prizes through March 1, 2005. Grand Prize entries must be received by January 31, 2005, First Prize entries by February 15, 2005 and Lots of Prizes entries by March 1, 2005.

The Grand Prize winner will receive a free trip with a guest to attend the exclusive Be Cool movie premiere slated for mid February. During the trip, the winner will attend the premiere with the stars, receive prizes including an autographed movie poster as well as Lexar’s newest JumpDrive USB flash drive and Lexar’s LDP-600 Digital Music Player. The First Prize winner will receive a private screening party with 25 friends at a movie theater in their area.

In addition to generating excitement among consumers, the promotion includes a separate retail sweepstakes that will offer the same Grand and First prizes to retail sales associates, who will be able to enter either via mail or through online Lexar product training at cyberscholar.com. In addition to including the Be Cool movie trailer on its JumpDrive USB flash drives, Lexar will highlight the promotion on packaging of all products shipped between December 22, 2004 and January 20, 2005, as well as with innovative point of purchase materials including counter and floor-standing tower displays.

“The Be Cool With Lexar promotion is a one-two punch that combines the power of a major MGM Studio feature release with Lexar,” said Theresa Boldrini, director of retail marketing, Lexar. “Preloading the movie trailer on a Lexar JumpDrive is an innovative way to distribute the trailer, while showcasing USB flash drive technology. Given the timing of the film’s release, this promotion is sure to generate tremendous excitement and create a tangible consumer experience within the retail channel during the high-traffic, post-holiday shopping season because it offers both consumers and retailers an opportunity to win great prizes. We’re anticipating significant ’buzz’ throughout the marketplace.”

John Travolta reprises his role as Chili Palmer in Be Cool, a sequel to the comedy smash Get Shorty. This time, Chili becomes a different kind of “hit” man -- he abandons the movie industry to bring his wise guy skills and negotiation tactics to the music business. The Be Cool movie premier date is February 15, 2005 with the nationwide theatrical release on March 4, 2005. The film was directed by F. Gary Gray, from a screenplay by Peter Steinfeld, based on the novel by Elmore Leonard. In addition to Travolta, the film stars Uma Thurman, Vince Vaughn, Cedric the Entertainer, Andre Benjamin, Steven Tyler, Robert Pastorelli, Christina Milian, Harvey Keitel, The Rock and Danny Devito. The European release is slated for the first week of April.

Lexar offers a wide range of high-performance JumpDrive USB flash drives geared toward every consumer need. Lexar JumpDrive products require no additional software or connectors and are powerful enough to store up to 2 GB of data -- providing consumers and business users with a fast and easy way to store and transport digital information.

About Lexar Media, Inc.

Lexar is a leading marketer and manufacturer of flash 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 78 issued or allowed controller and system patents, and licenses its technology to companies including Olympus, Samsung Electronics, SanDisk and Sony. For more information, please call 1-800-789-9418 or visit www.lexar.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 benefits and availability of, and consumer demand for, Lexar’s products, the growth opportunities available to Lexar and consumer response to the promotion. 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, among others, 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, JumpDrive and the Lexar logo are trademarks of Lexar Media, Inc. Be Cool is a trademark of Metro-Goldwyn-Mayer Pictures Inc. All other brand or product names are trademarks or registered trademarks of their respective holders.

Contact Information

Diane Carlini

Media Contact

Lexar Media, Inc.

Contact via E-mail