SanDisk Marks the Opening of Its First Production Plant in China

    Shanghai-based Plant to Assemble and Test Flash Memory Chip Packages for
Use In Mobile Phones

    SHANGHAI, CHINA, September 27 /CNW/ - SanDisk(R) Corporation
(NASDAQ:  SNDK), the world's largest supplier of flash storage card products,
today announced the opening of its production facility in Shanghai, the
company's first in the People's Republic of China. Based in Zizhu
Industrial-based Science Park, SanDisk Semiconductor (Shanghai) Co. Ltd.
(SDSS) is expected to play a critical role in SanDisk's worldwide operations
as the plant will focus on the assembly and test of its advanced flash memory
products for mobile and other consumers in markets worldwide. SanDisk's
worldwide operations function will also reside at the Shanghai facility. The
announcement was made today at a press conference held at the facility.

    The new SanDisk manufacturing plant produces a flash memory-based chip
package called System-in-a-Package (SiP), which is particularly valuable in
mobile phones where there is limited space due to their small size.

    "Shanghai is a strategic location that is close to our supply partners
and allows us to stay ahead of the curve as we seek to bring our products to
market faster," said Sanjay Mehrotra, president and Chief Operating Officer at
SanDisk. "We believe our new state-of-the-art facility will help us to meet
the growing demand for storage cards as consumers increasingly use their
mobile phones to view photos, listen to music as well as record and play

    The new 34,000 square metre facility is a vertically integrated
production operation with all test and assembly processes carried out at the
plant -- from receiving wafers from the company's fabrication sources, or
fabs, based in Japan to shipping complete products to customers. The
production capacity of SDSS is expected to meet approximately 30 percent of
SanDisk's SiP products projected global demand.

    Mehrotra added, "From Shanghai, SanDisk will lead our global drive for
ever improving operational efficiency and effectiveness to further strengthen
our leadership in areas of product quality, competitive cost and customer
satisfaction. The transformation of our supply chain is a strategic step for
the next phase of growth for SanDisk."

    Randhir Thakur, executive vice president of technology and world wide
operations at SanDisk, said, "Our new facility will produce some of SanDisk's
most technically sophisticated flash memory products, such as the 4 and 8
memory-die stacks required in high capacity microSD, SDHC(TM) and Memory Stick
Micro(TM) (M2) cards for mobile devices, with plans to set up a locally based
development team for new products. The selection of Zizhu Science Park for our
plant location gives us an advantage in recruiting the wealth of talent from
neighbouring leading universities -- Jiaotong University and Huadong
University -- as well as from the Shanghai area."

    Thakur commented, "We would like to thank the Shanghai municipality,
Minhang district and Zizhu Science Park for their tremendous support. This
support has helped SanDisk establish its presence in Shanghai and build this
state-of-the-art facility in record time."

    Juha Raisanen, senior vice president at SanDisk, is responsible for
managing end-to-end supply chain and overseeing SanDisk's worldwide backend
manufacturing operations organization. His office will be located at the
Shanghai facility. CK Lin has been appointed general manager of the SanDisk
Semiconductor (Shanghai) Co., Ltd. factory.

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

    SanDisk's web site/home page address: SanDisk's
product and executive images can be downloaded from

    SanDisk and the SanDisk logo are trademarks of SanDisk Corporation,
registered in the U.S. and other countries. Other brand names mentioned herein
are for identification purposes only and may be the trademarks of their
respective holder(s).

    This press release contains certain forward-looking statements, including
expectations for new product introductions, specifications, applications,
markets, customer acceptance, customers, capacity, operations, production and
the timing thereof that are based on our 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: market demand for our
products may grow more slowly than our expectations or there may be a slower
adoption rate for these products in new markets that we are targeting, we may
be unable to produce the types of products we expect or in the volumes or on
the schedule we anticipate, and the other risks detailed from time-to-time
under the caption "Risk Factors" and elsewhere in our Securities and Exchange
Commission filings and reports, including, but not limited to, our Form 10-K
and our quarterly reports on Form 10-Q. We do not intend to update the
information contained in this press release.


For further information:

For further information: Cohn & Wolfe Lorena Cordoba, 416-924-5700 ext.

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