Lexar Media and Samsung Electronics Sign Major Partnership Agreements

Apr 19, 2001, 01:00 ET from Lexar Media, Inc.

    FREMONT, Calif. and SEOUL, Korea, April 19 /PRNewswire/ --
 Samsung Electronics Co., Ltd. (Korea: 05930), a world leader in the
 electronics industry and the leading supplier of memory chips, and
 Lexar Media, Inc. (Nasdaq:   LEXR), a leading designer, developer and marketer
 of award-winning digital film and connectivity products for the digital
 photography market, announced today that they had signed a landmark licensing
 agreement.
     Under terms of the agreement, Samsung will have a non-exclusive, worldwide,
 non-transferable, royalty-bearing license for Lexar Media's patented
 controller technology. Lexar Media's controller-based technology will enable
 Samsung to develop a wide variety of innovative flash-based products that will
 drive the growth of the flash memory market in the coming years. Samsung will
 also have the right to purchase Lexar Media's flash memory controllers for
 resale and agreed to license its patents pertaining to flash controller
 technology to Lexar Media.
     In addition to the licensing deal, the companies have signed a supply
 agreement, whereby Lexar Media will purchase a substantial portion of its
 flash memory needs from Samsung. Samsung, in turn, has guaranteed a certain
 allocation of flash memory and agreed to provide flash memory to Lexar Media
 on a consignment basis, insulating Lexar Media from potential fluctuations in
 pricing and availability.
     "Samsung Electronics chose to license Lexar Media's unparalleled
 technology because controller-based solutions are critical to the future of
 new applications," said Chang-Gyu Hwang, President of Samsung Electronics. "We
 anticipate that the Samsung-Lexar Media partnership will greatly expand
 Samsung's penetration into this quickly emerging market and allow us to offer
 our customers the best flash solutions."
     "This licensing agreement is a defining moment for Lexar Media," said
 John Reimer, Lexar Media president and CEO. "Samsung is the number one
 supplier of DRAMs in the world and they have recently stated their goal to
 become the leading supplier of flash memory. Samsung is already demonstrating
 technical and cost leadership in its flash products and has an extremely
 impressive product roadmap. By integrating Lexar Media's patented controller
 technology into their products, Samsung will be able to produce a variety of
 low-cost, complex semiconductor devices, particularly those that demand high
 performance."
     Analysts estimate that the market for flash media will grow to more than
 $5 billion by 2004. Flash media is commonly used in many of today's digital
 cameras, PDAs, cell phones, video recorders and portable music players. The
 ever increasing file sizes used by these devices is driving the requirements
 for high speed media, making Lexar Media's technology critical to enabling
 future flash memory based products.
     "Lexar Media is extremely pleased to enter into this license agreement
 with Samsung Electronics," said Eric Whitaker, Lexar Media's Vice President of
 Technology Licensing. "Samsung becomes the third 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's patented technology for the production of Smart Media products.
 Samsung's license covers SmartMedia as well as other flash products. We are
 pleased that Samsung has recognized the value of Lexar Media's patents in
 producing flash-based products."
     The financial details were not disclosed.
 
     About Samsung Electronics Co., Ltd.
     Samsung Electronics Co., Ltd., with 2000 sales revenue of US$27 billion is
 a world leader in the electronics industry. The Korea-based company has
 operations in about 50 countries with 66,000 employees worldwide. The company
 consists of three main business units:  Digital Media, Semiconductors and
 Information & Communications Businesses. For more information, please visit
 our website, http://samsungelectronics.com .
 
     About Lexar Media
     Lexar Media, Inc. is a leading designer, developer and marketer of
 award-winning digital film and connectivity solutions for the professional,
 commercial and amateur digital photography markets. The adoption of our
 digital film and connectivity products for use with digital cameras and other
 digital devices is driven by Lexar Media's innovation in write speed
 technology, which is the cornerstone of our patented controllers. Lexar
 Media's other digital photography related products include "Shoot & Share"
 image browsing and editing software, an online photofinishing service at
 Printroom.com, and a web-based educational digital photography site at
 SayCheese.com. Headquartered in Fremont, California, Lexar Media also has
 offices in London and Tokyo. For more information, please call 800-789-9418 or
 visit www.digitalfilm.com.
 
     Cautionary Note Regarding Forward-Looking Statements
     This news release contains forward-looking information within the meaning
 of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
 Exchange Act of 1934 and is subject to the safe harbor created by those
 sections. These forward-looking statements include statements related to the
 potential value of our patent portfolio and the need to use our technology in
 flash memory products. These forward-looking statements involve a number of
 risks and uncertainties that could cause actual results to differ materially
 from those anticipated by these forward-looking statements. These risks
 include that Lexar Media could become subject to intellectual property claims
 that could divert management's time and attention, could be time consuming and
 expensive to defend and could limit our access to important technology and
 that if we are unable to adequately protect our intellectual property, our
 competitors may gain access to our technology which could harm our ability to
 successfully compete in our market. Readers should also refer to the risk
 factors described in Lexar Media's filings with the Securities and Exchange
 Commission including its Annual Report on Form 10-K for its fiscal year ended
 December 31, 2000, filed with the Commission on April 2, 2001. Lexar Media
 assumes no obligation to update the forward-looking information contained in
 this news release.
     NOTE:  Lexar Media, SayCheese.com, Shoot & Share and the Lexar Media logo
 are trademarks of Lexar Media, Inc. Lexar Media Inc. is an authorized licensee
 of the CompactFlash trademark. All other brand or product names are trademarks
 or registered trademarks of their respective holders.
 
 

SOURCE Lexar Media, Inc.
    FREMONT, Calif. and SEOUL, Korea, April 19 /PRNewswire/ --
 Samsung Electronics Co., Ltd. (Korea: 05930), a world leader in the
 electronics industry and the leading supplier of memory chips, and
 Lexar Media, Inc. (Nasdaq:   LEXR), a leading designer, developer and marketer
 of award-winning digital film and connectivity products for the digital
 photography market, announced today that they had signed a landmark licensing
 agreement.
     Under terms of the agreement, Samsung will have a non-exclusive, worldwide,
 non-transferable, royalty-bearing license for Lexar Media's patented
 controller technology. Lexar Media's controller-based technology will enable
 Samsung to develop a wide variety of innovative flash-based products that will
 drive the growth of the flash memory market in the coming years. Samsung will
 also have the right to purchase Lexar Media's flash memory controllers for
 resale and agreed to license its patents pertaining to flash controller
 technology to Lexar Media.
     In addition to the licensing deal, the companies have signed a supply
 agreement, whereby Lexar Media will purchase a substantial portion of its
 flash memory needs from Samsung. Samsung, in turn, has guaranteed a certain
 allocation of flash memory and agreed to provide flash memory to Lexar Media
 on a consignment basis, insulating Lexar Media from potential fluctuations in
 pricing and availability.
     "Samsung Electronics chose to license Lexar Media's unparalleled
 technology because controller-based solutions are critical to the future of
 new applications," said Chang-Gyu Hwang, President of Samsung Electronics. "We
 anticipate that the Samsung-Lexar Media partnership will greatly expand
 Samsung's penetration into this quickly emerging market and allow us to offer
 our customers the best flash solutions."
     "This licensing agreement is a defining moment for Lexar Media," said
 John Reimer, Lexar Media president and CEO. "Samsung is the number one
 supplier of DRAMs in the world and they have recently stated their goal to
 become the leading supplier of flash memory. Samsung is already demonstrating
 technical and cost leadership in its flash products and has an extremely
 impressive product roadmap. By integrating Lexar Media's patented controller
 technology into their products, Samsung will be able to produce a variety of
 low-cost, complex semiconductor devices, particularly those that demand high
 performance."
     Analysts estimate that the market for flash media will grow to more than
 $5 billion by 2004. Flash media is commonly used in many of today's digital
 cameras, PDAs, cell phones, video recorders and portable music players. The
 ever increasing file sizes used by these devices is driving the requirements
 for high speed media, making Lexar Media's technology critical to enabling
 future flash memory based products.
     "Lexar Media is extremely pleased to enter into this license agreement
 with Samsung Electronics," said Eric Whitaker, Lexar Media's Vice President of
 Technology Licensing. "Samsung becomes the third 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's patented technology for the production of Smart Media products.
 Samsung's license covers SmartMedia as well as other flash products. We are
 pleased that Samsung has recognized the value of Lexar Media's patents in
 producing flash-based products."
     The financial details were not disclosed.
 
     About Samsung Electronics Co., Ltd.
     Samsung Electronics Co., Ltd., with 2000 sales revenue of US$27 billion is
 a world leader in the electronics industry. The Korea-based company has
 operations in about 50 countries with 66,000 employees worldwide. The company
 consists of three main business units:  Digital Media, Semiconductors and
 Information & Communications Businesses. For more information, please visit
 our website, http://samsungelectronics.com .
 
     About Lexar Media
     Lexar Media, Inc. is a leading designer, developer and marketer of
 award-winning digital film and connectivity solutions for the professional,
 commercial and amateur digital photography markets. The adoption of our
 digital film and connectivity products for use with digital cameras and other
 digital devices is driven by Lexar Media's innovation in write speed
 technology, which is the cornerstone of our patented controllers. Lexar
 Media's other digital photography related products include "Shoot & Share"
 image browsing and editing software, an online photofinishing service at
 Printroom.com, and a web-based educational digital photography site at
 SayCheese.com. Headquartered in Fremont, California, Lexar Media also has
 offices in London and Tokyo. For more information, please call 800-789-9418 or
 visit www.digitalfilm.com.
 
     Cautionary Note Regarding Forward-Looking Statements
     This news release contains forward-looking information within the meaning
 of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
 Exchange Act of 1934 and is subject to the safe harbor created by those
 sections. These forward-looking statements include statements related to the
 potential value of our patent portfolio and the need to use our technology in
 flash memory products. These forward-looking statements involve a number of
 risks and uncertainties that could cause actual results to differ materially
 from those anticipated by these forward-looking statements. These risks
 include that Lexar Media could become subject to intellectual property claims
 that could divert management's time and attention, could be time consuming and
 expensive to defend and could limit our access to important technology and
 that if we are unable to adequately protect our intellectual property, our
 competitors may gain access to our technology which could harm our ability to
 successfully compete in our market. Readers should also refer to the risk
 factors described in Lexar Media's filings with the Securities and Exchange
 Commission including its Annual Report on Form 10-K for its fiscal year ended
 December 31, 2000, filed with the Commission on April 2, 2001. Lexar Media
 assumes no obligation to update the forward-looking information contained in
 this news release.
     NOTE:  Lexar Media, SayCheese.com, Shoot & Share and the Lexar Media logo
 are trademarks of Lexar Media, Inc. Lexar Media Inc. is an authorized licensee
 of the CompactFlash trademark. All other brand or product names are trademarks
 or registered trademarks of their respective holders.
 
 SOURCE  Lexar Media, Inc.