SanDisk and NDS Announce Partnership to Deliver Secure Video/Audio Con

SanDisk and NDS Announce Partnership to Deliver Secure Video/Audio Content on Flash Storage Cards Used in Mobile Devices

    Business Editors/High-Tech Writers
    CTIA Wireless 2005
    Booth No. 3869

    NEW ORLEANS--(BUSINESS WIRE)--March 14, 2005--

SanDisk To Integrate Mobile DRM Security Directly Into Its Line of Flash Storage Cards To Provide Secure Protection Of High-Quality Content On Mobile Devices
    SanDisk(R) Corporation (Nasdaq:SNDK), the leading provider of flash storage cards, and NDS (Nasdaq:NNDS)(Euronext Brussels:NNDS), a News Corporation company and a leading provider of technology solutions for digital pay TV and digital content protection for mobile devices, today announced a long-range partnership to provide an end-to-end solution for delivering high value video/audio content into SanDisk's new generation of secure flash storage cards for mobile devices. This will allow mobile network operators, service and content providers to protect their content property rights and ensure that consumers gain access to premium content, such as pay-per-view movies, video clips, digital images, video games, ringtones, realtones, MP3 music tracks and more on their mobile phone or portable device. The announcement was made at the CTIA Wireless 2005 trade show where SanDisk is demonstrating products in Booth #3869.
    SanDisk plans to integrate NDS mVideoGuard(R) Mobile DRM technology directly into its flash memory cards that are used in a growing range of mobile phones. mVideoGuard fully complies with the Open Mobile Alliance (OMA) DRM (Digital Rights Management) standard and lets service providers and mobile network operators offer revenue-enhancing business opportunities such as content subscriptions, single purchase, pay-per-time, pay-per-level, gifting, free preview, pay-per-use and metering functions.
    "NDS is a global leader of mobile content protection solutions," said Eli Harari, president and CEO of SanDisk. "Integrating their technology with our new generation of cryptographically secure mobile flash storage cards will provide a complete end-to-end solution to bring premium entertainment content to consumers while addressing the security concerns of content providers."
    Dr. Abe Peled, President and CEO of NDS said, "NDS's Mobile DRM provides the high security needed by mobile operators to offer strong content protection and to offer new revenue generating opportunities. This is becoming increasingly important as service providers and mobile network operators seek to leverage their distribution capabilities in order to build revenue streams by providing downloadable content to their handset customers. SanDisk is a leader in the flash card market and has close relationships with their customers through retail, handset and mobile network operators."
    Yoram Cedar, Senior Vice President of Engineering and Emerging Markets at SanDisk said, "Security on the storage card provides several important advantages. Consumers gain virtually limitless storage capacity and handset manufacturers are not burdened with the cost of providing large amounts of embedded storage in the phone. Consumers benefit because as content providers are assured that their content is secure, they will offer for sale their high-quality content."
    The market for mobile phones with card slots reflects high growth according to IDC, whose research shows that 87 million such phones were sold in 2004 and forecasts that 164 million will be sold worldwide in 2005. Industry sources indicate that more than 200 new models of mobile handsets to be introduced in 2005 will have a slot for flash storage cards. These new phones will utilize a variety of card formats, all of which are offered through SanDisk's mobile products line.
    SanDisk will sample the new flash cards with NDS mVideoGuard Mobile DRM technology in Q3 and plans to begin production in Q4 2005. Pricing will be announced at that time.
    SanDisk is the original inventor of flash storage cards and is the world's largest supplier of flash data storage card products, using its patented, high-density flash memory and controller technology. SanDisk is headquartered in Sunnyvale, CA and has operations worldwide, with more than half its sales outside the U.S.

    This press release contains certain forward-looking statements, including expectations for new product introductions, applications, markets, and customers that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Risks that may cause these forward-looking statements to be inaccurate include among others: we may not be able to successfully integrate the described technology, if we do integrate the technology, market demand for our products may grow more slowly than our expectations or there may be a slower adoption rate for these products in new markets that we are targeting, no security technology can be guaranteed to be 100% secure, and as such SanDisk cannot guarantee that data will be secure from unauthorized access, disclosure, alteration or destruction and the other risks detailed from time-to-time in our Securities and Exchange Commission filings and reports, including, but not limited to, Form 10-K and our quarterly reports on Form 10-Q. We do not intend to update the information contained in this press release.

    SanDisk's web site/home page address: http://www.sandisk.com.

    Images of SanDisk products are available at http://www.sandisk.com/corporate/media.asp

    SanDisk and the SanDisk logo are trademarks of SanDisk Corporation, registered in the U.S. and other countries. mVideoGuard is a registered trademark of NDS Group. Other brand names mentioned herein are for identification purposes only and may be trademarks of their respective holder(s).

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CONTACT: SanDisk Corporation Mike Wong, 408-548-0223 mwong@sandisk dot com or NDS Group plc Margot Field, +44 20 8476 8158

KEYWORD: LOUISIANA CALIFORNIA UNITED KINGDOM INTERNATIONAL EUROPE TRACK INDUSTRY KEYWORD: CONSUMER/HOUSEHOLD TELECOMMUNICATIONS SOFTWARE NETWORKING HARDWARE TRADESHOW PRODUCT MARKETING AGREEMENTS SOURCE: SanDisk Corporation

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