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Lexar Media Signs Licensing & Sales Agreement with SMART Modular Technologies

Wednesday, June 20, 2001

Press release from the issuing company

FREMONT, Calif., June 19, 2001 -- Lexar Media, Inc., a leading developer of flash mass storage systems and an innovator of high-performance, USB-enabled CompactFlash digital film, announced today its strategic alliance with SMART Modular Technologies, Inc. to create a new line of flash memory solutions for personal computing, telecommunications, networking and related applications. Lexar Media’s ATA flash controller will also be used by the new Wilmington, Mass., design center, which was formerly Centennial Technologies, Inc., until its recent acquisition by SMART’s parent company, Solectron Corporation (NYSE: SLR). The design, development and sales alliance between Lexar Media and SMART, a leading manufacturer of memory and I/O products, will produce an advanced line of CompactFlash, PC cards and solid-state IDE drive products for sales throughout SMART’s established domestic and international market channels. Production has commenced using Lexar Media’s patented controller technology and SMART’s design and manufacturing capabilities. “SMART is well-recognized as a top provider of flash memory products,” said John Reimer, Lexar Media’s president and CEO. “This alliance offers a major step forward for Lexar Media’s strategy to address adjacent market opportunities. The acceptance of Lexar Media’s patented controller technology for use by one of the largest independent memory module manufacturers in the world underscores the potential impact that Lexar Media offers to the evolution of flash memory storage devices.” “SMART chose to work closely with Lexar Media on our next-generation flash products for two important reasons,” said Ajay Shah, SMART’s president and CEO. “First, we were impressed with Lexar Media’s expertise and technological superiority as evidenced by years of development and recognized patents. Second, we are confident that Lexar Media will consistently deliver a technology that meets the stringent demands of our customers.” Lexar Media offers commercial and industrial temperature-range controllers for many oftoday’s devices including network equipment, personal computers, PDAs, digital cameras, cell phones, video recorders and portable music players. Lexar Media pioneered the built-in USB function and was the first company to develop and guarantee high-performance write speed standards for its line of USB-enabled CompactFlash cards. The Lexar Media ATA flash controller gives storage systems a rugged solid-state design, low-power operation, high capacity and easy upgrade capability. “SMART has global reach, a full product line and high quality standards,” said Bob Leibowitz, Lexar Media’s vice president, OEM business segment. “As we align ourselves with market innovators, we look forward to working with companies that understand the benefits of our controller technology. Together, we are raising the bar for storage solutions for the OEM market, bringing advances to performance, speed, capacity and connectivity.” Lexar Media is the first company to build a USB interface onto its ATA controller. Lexar Media’s patented solution offers a low-cost connection to the USB port of a personal computer or embedded system in a single integrated device. The USB feature is targeted at ATA CompactFlash, embedded flash drives and the emerging category of “key chain” flash drives. The USB interface can also be used to connect with other I/O devices (i.e., Bluetooth chipset) in a multi-function card. By using industry-standard ATA mass storage class driver support, Lexar Media eliminates the need for a special driver in new operating systems. Financial details of the agreement were not disclosed.




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