FREMONT, Calif., August 7, 2001 -- Lexar Media, Inc a leading developer of flash mass storage systems and an innovator of high-performance, USB-enabled CompactFlash™ digital film, today announced that it has signed an agreement to supply Viking Components, one of the world’s largest and fastest-growing manufacturers of OEM and upgrade component technology, with Lexar Media’s latest generation patented ATA flash controllers. Viking sells its products via a network of distributors, resellers and retailers to more than 50 global markets. This agreement takes effect immediately. Viking is licensing and integrating Lexar Media’s ATA flash controller technology into its flash-based industrial and consumer CompactFlash, PC Card and IDE product lines. Lexar Media’s technology was selected for offering consistently fast write speeds, high-capacity capabilities, data storage reliability and a low-cost design structure. “We are competing in a market that requires us to provide a high-quality product with short lead times, so we must work with suppliers whose technology helps us keep our competitive edge,” said Glenn McCusker, CEO of Viking Components. “We believe Lexar Media’s non-infringing controller technology will allow us to consistently deliver products which exceed the performance, quality and reliability requirements of our customers.” This licensing agreement further expands and formalizes a longstanding, bilateral business relationship enjoyed by Viking and Lexar Media. “We have been providing controllers to Viking for a number of years,” said Eric Stang, Lexar Media president and CEO. “Technology licensing continues to be a strategic focus for our company and this relationship is a great example of a leading manufacturer seeing the benefits of integrating Lexar Media’s technology.” Lexar Media is indemnifying Viking in the lawsuit brought by SanDisk Corporation over Viking’s sale of flash memory cards using Lexar Media’s old controller. “Viking has migrated its products to Lexar Media’s new controller which has been publicly recognized not to infringe others’ patents and, of course, is licensed under Lexar Media’s extensive patent portfolio,” added Mr. Stang. Lexar Media offers commercial and industrial temperature-range ATA flash memory controllers which Viking will integrate into its flash-based product lines sold worldwide for use within industrial/OEM applications, desktop systems, digital cameras, PDAs, cellular phones, laptops and other digital devices. Lexar Media pioneered the built-in USB function onto memory cards 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.