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Microsoft, SanDisk Create USB Gear

REDMOND, Wash. -- Microsoft and SanDisk Corporation (NASDAQ:SNDK - News) today announced they have signed an agreement to deliver a next-generation software and hardware solution to place application programs and personal customization on USB flash drives and flash memory cards, expanding on and replacing SanDisk's existing U3(TM) Smart Technology.

Under the terms of the agreement, Microsoft will develop a new software experience and SanDisk will develop new hardware capabilities, including the addition of TrustedFlash(TM) security technology. SanDisk will incorporate the combined software and hardware solution on removable flash memory cards and Cruzer® USB flash drives. The new offering is expected to be commercially available starting in the second half of 2008.

Microsoft Corp. (Nasdaq: MSFT)

SanDisk Corp.