FREMONT, Calif., May 3, 2001 -- Lexar Media, Inc. (NSDQ: LEXR) a leading designer, developer and marketer of award-winning digital film and connectivity products for the digital photography market, and Olympus Optical Co., a world leader in the development and marketing of digital cameras, announced today that both companies have entered into an OEM and technology licensing agreement, which goes into effect immediately. The terms of the agreement include the following key points: *Lexar Media and Olympus will jointly develop next generation digital film for use in future Olympus digital cameras. These future digital film products will carry the Lexar Media brand. *Olympus will have a non-exclusive license to Lexar Media's patented technology. The license applies to technology used in digital film cards manufactured by or for Olympus across its full line of professional and consumer products. *Bundling of Lexar Media branded digital film with all Olympus digital cameras to be distributed in Japan. "Olympus recently announced its intent to focus on high-end digital camera products, which demand high-quality, high-performance digital film. I am pleased that Olympus has chosen Lexar Media as their partner for high performance digital media," said John Reimer, Lexar Media's president and CEO. "Olympus is clearly a market leader in digital camera development and marketing. They are committed to offering best-of-class products, which is why Olympus digital cameras are known around the world as being of the highest quality." "The superior high-resolution image quality delivered by Olympus digital cameras demands a digital film capable of writing data as fast as possible," said Yusuke Kojima, general manager of Olympus Optical Co., Ltd. "Olympus is pleased to integrate Lexar Media's superior technology into our digital film products. Today's digital cameras demand a lot from digital film. Lexar Media's technology is critical for optimizing digital camera performance." Olympus becomes the fourth licensee of Lexar Media's patents. Sony was the first licensee of Lexar Media's technology for adaptation in Sony's Memory Stick format. SanDisk was the second licensee of Lexar Media's patented technology for the production of SmartMedia… products. The third license is with Samsung Electronics and covers SmartMedia as well as other flash products. Financial details of the agreement are confidential.