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SanDisk Comments on ITC Patent Ruling

MILPITAS, Calif. -- SanDisk Corporation (NASDAQ:SNDK) was informed today that an Administrative Law Judge for the United States International Trade Commission (ITC) issued an Initial Determination which found that certain accused flash memory products did not infringe the remaining two SanDisk United States Patents.

SanDisk initially asserted five patents in the ITC on October 24, 2007 against 25 companies that manufacture, sell and import USB flash drives, CompactFlash cards, MultiMedia cards, MP3/media players and/or other removable flash storage products. Since then, SanDisk obtained judgments against the following companies: Zotek Electronic Co., Ltd. dba Zodata Technology Limited; Infotech Logistic, LLC dba Supertron Memory; Add-On Technology Co.; Behavior Tech Computer Corp.; Emprex Technologies Corp.; and Behavior Tech Computer USA Corp. dba BTC USA.

In addition, the following companies entered into settlement and license agreements with SanDisk: Trek 2000 International, Ltd., PNY Technologies, Inc., Verbatim Corp., Verbatim Americas, Add-On Computer Peripherals, Inc. and Add-On Computer Peripherals, LLC (collectively, Add-On USA), Edge Tech Corporation, Infotech Logistic, Interactive Media Corp. (Kanguru), Kaser Corporation, TSR Silicon Resources Inc., and Welldone Company.

Further, the following companies entered into settlement agreements that included consent orders where the companies agreed to limit their imports of specified products to the United States to SanDisk licensed products: A-DATA Technology Co., Ltd. and A-DATA Technology (USA) Co., Ltd. (collectively, A-DATA entities), Melco Holdings Inc., Buffalo Inc., and Buffalo Technology (USA), Inc. (collectively, Buffalo entities) and Corsair Memory, Inc.

“SanDisk is disappointed by the Initial Determination of the Administrative Law Judge,” said E. Earle Thompson, vice president and chief intellectual property counsel, SanDisk. “We will continue to vigorously pursue actions against companies that use SanDisk’s patented technology without a license. SanDisk expects that the Initial Determination will not adversely impact existing licensing agreements or the royalties expected from those agreements.”

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