SANDISK COMPLETES MATRIX ACQUISITION!

[Dashken]

SUNNYVALE, CA, Jan. 17, 2006 – SanDisk® Corporation (NASDAQ: SNDK) today announced that it completed the acquisition of Matrix Semiconductor, Inc., a privately held company based in Santa Clara, California. On October 20, 2005, SanDisk signed a definitive agreement to acquire Matrix, a pioneer in the design and development of three-dimensional (3-D) integrated circuits. Matrix® 3-D Memory is used for one-time programmable storage applications where low cost is the paramount consideration, such as video games, music and other content, and for archiving.

The acquisition consideration included approximately 3.7 million newly issued SanDisk shares, the assumption of equity incentives which could result in the issuance of approximately 600,000 additional shares of SanDisk stock, and cash of approximately $14 million.


Source: http://www.sandisk.com/Corporate/PressRoom/