SanDisk and Skype Announce Pocket-Sized Internet Video Calling on Smart Drives; Preloaded SanDisk U3 Cruzer Smart Drives Let Consumers Make Skype Voice and Video Calls Around the World

SanDisk(R) Corporation (Nasdaq:SNDK), the world's
largest supplier of flash memory card storage products, and Skype(TM),
the global Internet communications company, have announced that Skype
users can now make free calls and chat on almost any PC without having
to download software. The Skype software will now come pre-loaded on
SanDisk's newest Cruzer(R) Micro and Cruzer Titanium lines of
Skype-certified U3(TM) enabled smart drives. This will allow consumers
to make free PC-to-PC audio and video calls to Skype users in most
major markets.
SanDisk's Cruzer Micro and Cruzer Titanium with U3 gives users a
portable way to carry files and programs without leaving any personal
information behind on a computer. This means Skype users can take
their Skype account complete with their contacts, settings and
preferences on a device that is smaller than a pack of chewing gum and
make calls, with video as an option, from any PC such as those in
Internet cafes and hotels. This compact Skype is particularly useful
for business travelers, leisure travelers, students and anyone who
uses multiple computers.
"Skype likes to partner with the brightest and best in their
industries," said Saul Klein, VP Marketing, Skype. "SanDisk is an
excellent addition to the growing Skype ecosystem of partners and will
allow us to reach an entirely new set of Skype users."
The U3 platform, which allows a variety of applications to be
loaded onto a flash drive, is a standard feature on all capacities of
SanDisk's latest versions of its Cruzer Micro and Cruzer Titanium USB
smart drives.
"SanDisk sees the U3 platform as the next major step in mobile
computing," said Carlos Gonzalez, Senior Director of USB at SanDisk.
"The Cruzer Micro and Cruzer Titanium with U3 will enable people to
carry around, on a small, convenient USB flash drive, their complete
personal desktop with all their favorite U3 smart applications,
settings and contacts and allow them to work on any PC, wherever they
go. Skype is such a convenient communication tool for professionals
and the whole mobile generation that it has become an essential part
of their work and digital lives. So we are proud to announce that we
have established a close cooperation with Skype, enabling us to
include the software exclusively on our Cruzers."
The new drives will display the Skype logo on the packaging and
will feature one free month of Skype voicemail for the mobile user to
get messages from their Skype calls even when on the go. The SanDisk
Cruzer Micro with Skype preloaded is available at retail outlets in
U.S. and Europe, including Skype's online store, for suggested retail
prices ranging from $39.99 to $199.99. Capacities are 512 megabytes
(MB), 1 gigabyte (GB), 2GB and 4GB(a). SanDisk Cruzer Titanium with
Skype comes in 1GB and 2GB, at suggested prices of $74.99 and $119.99
respectively, and is now shipping in most major markets.
Skype is one of four productivity software tools bundled on
SanDisk's newest Cruzer Micro and Titanium flash drives. The U3
technology provides a resident environment for applications that
operate directly from the flash drive. Other U3-compatible programs on
the SanDisk drives offer anti-virus, file synchronization and password
management functions. U3 applications work with any PC using Microsoft
Windows XP or 2000 operating systems.(b)

About Skype

Skype is the world's fastest-growing Internet communication
offering, allowing people everywhere to make unlimited voice and video
communication for free between the users of Skype software. Skype is
available in 27 languages and is used in almost every country around
the world. Skype generates revenue through its premium offerings such
as making and receiving calls to and from landline and mobile phones,
as well as voicemail and call forwarding. Skype also has relationships
with a growing network of hardware and software providers. Skype is an
eBay company (Nasdaq:EBAY). To learn more visit skype.com.
Skype is not a replacement for your ordinary telephone and cannot
be used for emergency calling.

About SanDisk

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 Milpitas, CA and has operations worldwide,
with more than half its sales outside the U.S.

(a) 1 megabyte (MB) = 1 million bytes; 1 gigabyte (GB) = 1 billion
bytes. Some of the listed capacity is used for formatting and
other functions, and thus is not available for data storage.

(b) U3 functionality is not supported under Mac OS (any version,
but device is MSC).

SanDisk's product images can be downloaded from
http://www.sandisk.com/corporate/media.asp
SanDisk's web site/home page address: http://www.sandisk.com
SanDisk, the SanDisk logo and Cruzer are trademarks of SanDisk
Corporation, registered in the United States and other countries.
Skype is a registered trademark of Skype Technologies S.A.. U3 is a
trademark of U3, LLC. Other brand names mentioned herein are for
identification purposes only and may be the trademarks of their
respective holder(s).