Media and SanDisk have today both announced support for the xD-Picture
Card format, which was developed by Olympus, FujiFilm and Toshiba. Lexar
Media will now be offering xD-Picture Cards
in Lexar packaging through many of its worldwide retail outlets and SanDisk have signed a 5 year agreement with Olympus to manufacture as well as sell xD-Picture Cards under the Olympus brand.
Lexar Press Release:
Lexar Media and Olympus Sign Worldwide Supply and License Agreement
Lexar to Expand Sales of xD Picture Card
FREMONT, Calif., May 27, 2003 -- Lexar Media, a leading designer, developer and marketer of award-winning high-performance digital media and accessory products, and Olympus Optical Co., a world leader in the development and marketing of digital cameras, today announced a significant expansion of their relationship with the signing of a new OEM and technology licensing agreement.
Under the new agreement, Lexar Media will now be offering xD-Picture Cards in Lexar packaging through many of its 37,000 worldwide retail outlets. Lexar Media has also agreed to license its patents to Olympus for the xD-Picture Cards and host devices sold to Olympus' retail customers or bundled with Olympus cameras. Lexar Media has been selling Olympus xD-Picture Cards since 2002 in capacities of 16MB, 32MB, 64MB and 128MB, and, more recently, 256MB.
"We are thrilled to expand upon our extensive past collaboration with Olympus which has been a long-time investor in Lexar Media," said Eric Stang, Lexar Media's chairman and CEO. "The xD-Picture Card has proven extremely popular with consumers and we are pleased to bring our brand strength and worldwide distribution to this emerging format. Since 1999, Olympus and Lexar Media have had a strategic alliance that has included joint development, sales, and marketing of flash products with Olympus cameras in certain retail markets internationally. We believe this new agreement will continue to allow Lexar to offer a single solution to all of a customer's memory card needs."
"Lexar Media has been a long and valued partner of Olympus," said Hiroshi Komiya, Olympus Director and Group President, Imaging Systems Group. "We have always recognized the value of Lexar's technology and look forward to this new dimension of our relationship."
Lexar Media and Olympus also agreed to future joint technology development.
Lexar Media's current offering of digital media includes xD-Picture Card,
CompactFlash Type I/II, Memory Stick - including Memory Stick Select and
Memory Stick PRO, Secure Digital Card, MultiMediaCard and Smart Media.
Lexar Media is the only company to that currently provides all popular
memory formats to its distributors and customers.
SanDisk Press Release:
SANDISK ANNOUNCES LICENSING, MANUFACTURING AND SELLING AGREEMENT WITH OLYMPUS FOR THE xD-PICTURE CARD
SanDisk To Make Olympus Branded xD-Picture Card For Olympus And For Resale Through SanDisk's Retail Distribution Channel
SUNNYVALE, CA, MAY 27, 2003 - SanDisk Corporation (NASDAQ:SNDK) today announced that it has signed a five-year agreement with Olympus Optical Co., Ltd. covering the xD-Picture Card(tm) format. Under the agreement, Olympus will be licensed to SanDisk's patents relating to xD flash cards and host devices. SanDisk will be licensed to manufacture xD-Picture Cards for Olympus as well as sell xD-Picture Cards under the Olympus brand through SanDisk's global retail distribution channels. SanDisk will begin shipments of xD-Picture Cards in selected regions beginning in June 2003, with worldwide availability in the third quarter, 2003.
The xD-Picture Card is a flash memory card format developed and owned by Olympus, FujiFilm and Toshiba. It was introduced in the fourth quarter of 2002 and has gained popularity in many of the of new digital camera models that are sold by Olympus and FujiFilm. The xD-Picture Card is targeted primarily at "digital film" applications and offers high storage capacities for high mega-pixel photos as well as high performance needed to store the video clips that are becoming increasingly more popular in digital cameras. SanDisk initially will sell the xD-Picture Card in capacities ranging from 64 to 256 megabytes. The xD-Picture Card can support up to a maximum future capacity of 8 gigabytes.
Eli Harari, SanDisk's President and CEO, said, "We are very pleased with this agreement with Olympus, one of the leading manufacturers of digital cameras in the world. This agreement allows us to support Olympus as an important new OEM customer, as well as Olympus' customers in the retail after-market. This is consistent with SanDisk's retail strategy to be a one-stop-shop card supplier for consumers, regardless of which flash card format they use in their digital cameras and other portable digital appliances. Through this xD-Picture Card agreement with Olympus, SanDisk plans to make and sell worldwide all the major flash card formats."
SanDisk, the world's largest supplier of flash data storage card products, designs, manufactures and markets industry-standard, solid-state data, digital imaging and audio storage products using its patented, high density flash memory and controller technology. SanDisk is based in Sunnyvale, CA.
The matters discussed in this news release contain forward looking statements that are subject to certain risks and uncertainties as described under the caption, "Factors That May Affect Future Results" in SanDisk's annual report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. The company assumes no obligation to update the information in this release. SanDisk cannot guarantee that it will succeed to manufacture competitively the xD-Picture Card or that its sales of xD-Picture Card either to Olympus or through its own sales channels will contribute materially to SanDisk's revenues or profits.
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