PNY Signs License Agreement with SanDisk to Settle Patent Litigation

MILIPITAS, CA and PARSIPPANY, NJ, Jan. 3, 2008—SanDisk Corporation (NASDAQ: SNDK) and PNY Technologies® (“PNY”) today announced that PNY has signed a patent cross-license agreement with SanDisk to settle patent cases filed by SanDisk last year in Federal District Court and the International Trade Commission against PNY flash memory products including USB drives and CompactFlash™ cards.

The cross-license agreement provides PNY a competitive market advantage by ensuring it can continue to market and sell USB drives and CompactFlash™ cards, now as SanDisk licensed products, and assures that PNY’s supply of such flash memory products will not be disrupted by the patent claims pending against other parties.

Under the terms of the cross-license, PNY will pay SanDisk royalties on flash memory products that were not previously licensed. The specific terms of the cross-license are confidential.

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 PNY Technologies® Established in 1985, PNY Technologies®, Inc. is a leading supplier and marketer of NVIDIA Quadro® by PNY professional graphics boards and Verto and XLR8™-brands consumer graphics cards. The company also offers a full line of PC memory upgrade modules, flash cards, including Optima Pro™ high speed Compact Flash and Secure Digital, Attaché™ USB flash drives, SSD, motherboards and digital picture frames. Headquartered in Parsippany, N.J., PNY maintains facilities in North America (Santa Clara and Orange County, CA, Miami, FL and Parsippany, N.J.), Europe (France, United Kingdom, Germany) and Asia (Taiwan). For additional information, please visit the company’s Web site at http://www.pny.com.

SanDisk’s product and executive images can be downloaded from www.sandisk.com/corporate/media.asp SanDisk’s web site/home page address: www.sandisk.com.
SanDisk and the SanDisk logo are trademarks of SanDisk Corporation, registered in the United States and other countries. Other trade names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).

This press release contains forward-looking statements, including each company’s overall patent enforcement strategy that are based on the respective company’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: inability to negotiate and enter into licenses in patent cases; litigation or settlement strategies may change; either company may become subject to one or more countersuits by defendants; either company may be unsuccessful in litigation or otherwise may be unable to protect its intellectual property rights, which could harm its business, financial condition and results of operations; litigation may be costly, may divert the efforts of key personnel and could result in adverse court rulings, which could materially harm either company’s business; and the other risks detailed from time-to-time under “Risk Factors” and elsewhere in SanDisk’s Securities and Exchange Commission filings and reports, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2006 and its subsequent Quarterly Reports on Form 10-Q. The companies do not undertake any obligation to update the information contained in this press release.

Contact Information

Mike Wong

SanDisk Corporation

Contact via E-mail