SUNDISK INTRODUCES LOW-COST 1MB FLASH MASS STORAGE CARD FOR PORTABLE DATA
COLLECTION MARKET

Announcement Marks SunDisk's Entry Into New Market

CHICAGO, ILL, May 17, 1994 -- SunDisk Corporation today introduced a
low-cost, 1 Megabyte (MB) flash mass storage card aimed primarily at users
of portable data collection computers. The announcement was made at a
press conference at ID EXPO, an annual handheld products trade show.

The SunDisk SDP5-1 flashdisk, available immediately, is expected to carry
an end-user price ranging between $169 -- $189 at various outlets. It is
priced very competitively against 1MB SRAM (static random access memory)
cards. SRAM cards are forecasted to be a $94 million market worldwide in
1994, according to In-Stat, a Phoenix-based market research firm.

OEM volume pricing for the 1MB SunDisk flashdisk will be under $100 per
card.

Nelson Chan, SunDisk's director of marketing, said, "This 1MB flashdisk is
the 'SRAM killer' that many handheld computer buyers have been asking for.
It's the natural replacement and upgrade for the millions of SRAM cards
now used to store information in data collection terminals and computers.

"Flashdisks have many advantages over SRAM cards. SRAM cards are volatile
and require a battery on the card in order to retain its data This can
cause users to lose data when the battery runs down or the computer system
is turned off when the SRAM battery is weak. Sometimes the battery is
dislodged by rough usage and data is lost. Flash mass storage cards are
exceptionally rugged, and no battery is needed on the flashdisk because it
is non-volatile and does not need power when the system in which it is
being used is turned off. Our flashdisks are compatible with the
PCMCIA-ATA industry standard so users are guaranteed interoperability and
compatibility across virtually all handheld platforms."

Non-ATA flash mass storage cards based on proprietary flash file systems
(FFS), such as those sold by several vendors, have numerous drawbacks.
FFS-based flashdisks have very limited interoperability between systems,
lack forward and backward compatibility, are not 100 percent DOS
compatible and provide lower performance than ATA flashdisks.

Chan also pointed out that the highest capacity SRAM cards go to only 4MB
while SunDisk offers flash cards in various capacities ranging between 1
and 40MB. SunDisk flashdisks also can be pre-loaded with Stacker
compression software which effectively doubles the capacity on all cards
to a maximum of 80MB.

Besides having those advantages over SRAM cards, flashdisks also enjoy a
substantial price advantage. A 5MB flashdisk, for example, has a list
price of $375 while a 4MB SRAM card (the highest capacity available) is
priced in the $1200 to $1500 range.

One MB of storage, which can store approximately 500 doublespaced pages of
text, is adequate for most handheld users because their application and
operating system software typically is embedded in ROM (read only memory).
The storage card is used mainly for data storage and data transfer between
systems.

SunDisk flashdisks, which have minimal power requirements, are expected to
be used for numerous handheld applications including sales automation,
competitive sales analysis, package delivery, product inventory, meter
reading and cable TV service.

SunDisk, the world's leading supplier of flash mass storage cards, designs,
manufactures and markets industry-standard, solid-state mass storage
products using proprietary, high density flash memory technology. SunDisk
mass storage cards are "plug and play" in almost all desktop, notebook,
subnotebook and handheld computers. SunDisk has established strategic
relationships with Seagate Technology, AT&T and Matsushita Electronics
Corporation. SunDisk, a privately-held firm, is based in Santa Clara, CA.

SunDisk Corp
3270 Jay St
Santa Clara, CA 95054
408-562-0500,  fax 408-562-0503

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