FREMONT, Calif., June 21, 2001 – Lexar Media, Inc. (NSDQ: LEXR), a leading developer and supplier of high-performance, USB-enabled CompactFlash™ digital film and flash storage controllers and technology, today announced that it has signed an agreement to supply Dane-Elec (SICOVAM 3677), a pre-eminent memory module manufacturer, with Lexar Media’s patented ATA controller. This agreement is yet another that makes Lexar Media’s patented controller available to new markets beyond digital photography. Dane-Elec will license Lexar Media’s technology and purchase controllers for ATA CompactFlash cards beginning in May 2001 for sales throughout the U.S. and Europe. Dane-Elec serves both OEM and retail markets, providing storage solutions for industrial products, PDAs and other consumer electronics devices.   “Dane-Elec is a world-class supplier of memory modules and this partnership allows us to capitalize on markets adjacent to our core digital photography business,” said John Reimer, Lexar Media’s president and CEO. “In expanding our licensing segment, we can continue to leverage our technology and business investment from our digital photography heritage and apply this to other rapidly emerging market opportunities. The agreement adds momentum to our growing technology licensing and controller business.” In addition to offering digital film media and connectivity products for the digital photography market, Lexar Media also provides commercial and industrial controllers to manufacturers of 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 provides storage systems with a rugged solid-state design, plus reduced power consumption and high capacity. Enhanced controller programming capabilities allow the firmware to be easily upgraded to accommodate new features. “Dane-Elec’s expansion in the flash memory business is rapidly growing so gaining usage rights to Lexar Media’s controller technology is critical,” said David Haccoun, president of Dane-Elec. “Lexar Media’s technology eliminates the need to pay IP licensing fees for removable flash storage products such as CompactFlash and PC Cards. Plus, their pioneering design requires a minimum number of external components, resulting in lower manufacturing costs for us. Lexar Media’s technology is unsurpassed and meets our high quality standards.” “We appreciate Dane-Elec’s commitment to our ATA flash controller product line,” said Bob Leibowitz, Lexar Media’s vice president, OEM business segment. “We believe our controller product line offers an unsurpassed combination of benefits including fast sustained write rates, built-in USB connectivity and a highly-integrated, low-cost system design. Lexar Media has years of experience working closely with leading equipment companies, thus ensuring that our CompactFlash and PC Cards are optimized for use in many systems.”