Toshiba and SanDisk to Expand NAND Flash Memory Production with Construction of New Advanced Fabrication Facility in Japan

Toshiba Corporation and SanDisk(R) (NASDAQ:SNDK) today announced
that they have signed a non-binding memorandum of understanding to
form a new production joint venture and construct a new 300 millimeter
(mm) wafer fab in Japan to build on and further their industry-leading
positions and meet the anticipated future demand for NAND flash
memory. The two companies will now select the plant site, targeting a
production start-up date in 2010. This latest announcement underscores
the commitment of Toshiba and SanDisk to the rapidly expanding market
for NAND flash memory, which has become the storage technology of
choice for a growing number of consumer and computing devices,
including memory cards.

Fifty percent of the new fab´s production capacity will be
allocated to the new joint venture. Within the joint venture the
parties will equally share wafer output and funding for the equipment.
The remaining 50% of the Fab´s production capacity will be managed by
Toshiba and half of the output will be provided to SanDisk on a
committed foundry basis. The agreement provides SanDisk an option to
convert its committed foundry capacity into the joint venture or to
convert to a non-committed foundry arrangement. Construction of the
new facility is expected to start in calendar year 2009.

Commenting on the new facility, Mr. Shozo Saito, Corporate Senior
Vice President of Toshiba Corporation and President & CEO of Toshiba´s
Semiconductor Company, said, "NAND flash memory is enjoying rapid
growth and is expected to expand with new applications in coming
years. Toshiba is committed to support such growth of NAND flash
memory through continued proactive capital investments in production
capacity and advanced process technology. The new fab will build on
the strong record of success we have achieved with SanDisk in flash
memory product development and production, and further strengthen our
partnership."

Dr. Eli Harari, Chairman and Chief Executive Officer of SanDisk,
said, "We are very pleased with the financing structure in the new
agreement which maintains our guaranteed 50% of the capacity output
while reducing substantially our capital expenditure commitments for
funding the new fab NAND manufacturing equipment. We believe this will
allow us to meet our forecasted customer needs in 2010 and beyond,
while freeing up cash flow for investments in new products and in
growth markets. This substantial undertaking by Toshiba and SanDisk
demonstrates our confidence in the continued future success of the
strong partnership between our two companies."

Toshiba and SanDisk expect to sign a definitive agreement later in
2008.

About Toshiba Corporation

Toshiba Corporation is a leader in the development and manufacture
of electronic devices and components, information and communication
systems, digital consumer products and power systems. The company´s
ability to integrate wide-ranging capabilities, from hardware to
software and services, assure its position as an innovator in diverse
fields and many businesses. In semiconductors, Toshiba continues to
promote its leadership in the fast growing system LSI market and to
build on its world-class position in NAND flash memories, analog
devices and discrete devices. Visit Toshiba´s website at
www.toshiba.co.jp/index.htm

About SanDisk

SanDisk Corporation, the inventor and world´s largest supplier of
flash storage cards, is a global leader in flash memory - from
research, manufacturing and product design to consumer branding and
retail distribution. SanDisk´s product portfolio includes flash memory
cards for mobile phones, digital cameras and camcorders, digital
audio/video players, USB flash drives for consumers and the
enterprise, embedded memory for mobile devices, and solid state drives
for computers. SanDisk (www.sandisk.com/corporate) is a Silicon
Valley-based S&P 500 company, with more than half its sales outside
the United States.

Toshiba

Disclaimer:

This press release contains forward-looking statements concerning
future plans, strategies and the performance of Toshiba Group. These
statements are based on management´s assumptions and beliefs in light
of the economic, financial and other data currently available.
Furthermore, they are subject to a number of risks and uncertainties.
Toshiba therefore wishes to caution readers that actual results may
differ materially from our expectations. Major risk factors that may
have a material influence on results are indicated below, though this
list is not necessarily exhaustive.

-- Disputes including lawsuits in Japan and other countries

-- Success or failure of alliances or joint ventures promoted in
collaboration with other companies;

-- Success or failure of new businesses or R&D investment;

-- Changes in political and economic conditions in Japan and
abroad; unexpected regulatory changes;

-- Major disasters, including earthquakes and typhoons;

-- Rapid changes in the supply/demand situation in major markets
and intensified price competition;

-- Significant capital expenditure for production facilities and
rapid changes in the market;

-- Changes in financial markets, including fluctuations in
interest rates and exchange rates.

SanDisk

Forward-Looking Statements

This press release contains certain forward-looking statements,
including statements about each company´s business outlook,
technological advancements, investments, construction timetables,
production schedules and output and effects on financial performance,
new markets and customers, supply and demand, and sales that are based
on each company´s current expectations and involve numerous risks and
uncertainties that may cause these forward-looking statements to be
inaccurate and may significantly and adversely affect each company´s
business, financial condition and results of operations. For SanDisk,
these risks and uncertainties are discussed in detail under the title
"Risk Factors" and elsewhere in SanDisk´s Securities and Exchange
Commission filings and reports, including, but not limited to, its
Annual Report on Form 10-K for the fiscal year ended December 31, 2006
and its Forms 10-Q.

SanDisk is a trademark of SanDisk Corporation, registered in the
United States and other countries.