Asia, Pacific Rim Markets Will Benefit From Close-at-Hand Packaging and Shipping

HONG KONG, April 13, 2004 - SanDisk Corporation (NASDAQ:SNDK) today announced that it has opened its first distribution center in China, in the Futian Free Trade Zone of Shenzhen near Hong Kong. The facility, located in a five-floor, 59,203-square-foot building, will house packaging and shipping operations for Asia and the Pacific Rim. The announcement was made at a SanDisk press conference in Hong Kong.

Managed by Modus Media, Inc., an international fulfillment company headquartered in Westwood, Mass., the center will supply SanDisk retail products to China, India and Southeast Asia, as well as to Australia and New Zealand. Products will be shipped to Shenzhen direct from manufacturing plants in China and Taiwan. Previously, they were sent to SanDisk's distribution center in Raleigh, North Carolina, which facilitated shipment to Asia.

"This new facility allows us to save time, offer quicker turnaround on orders to customers and have a presence in the region," said Alex Chan, SanDisk marketing and sales manager for Asia/Pac Rim. Chan, who is based in Hong Kong, added, "It's a relatively new building-only 18 months old-and we can acquire more space in it as we grow."

Modus competed with other companies for the contract, although it has a history of doing fulfillment work for SanDisk in Europe and the United States. The company opened an 80,000-square-foot facility in downtown Shenzhen, within one mile of a primary commercial boarder crossing to Hong Kong, in January 2002. A year later, Modus launched its Futian Solution Center in the Free Trade Zone, where it provides clients with Just-In-Time (JIT) and Configure-To-Order (CTO) manufacturing fulfillment business models.

With its role managing the Futian facility, Modus will procure all product packaging for SanDisk retail markets in Asia and the Pacific Rim. And it will ship directly to Asian distributors, including ones in China that operate from Shanghai, Beijing and Shenzhen.

"SanDisk's decision to continue its global supply chain innovation and execution with Modus by utilizing Modus' Asia region is a tremendous validation of our partnership," said Jacob House, the company's global business process manager for SanDisk. "Our partnership with SanDisk now epitomizes our core offering of being global, integrated and trusted. We eagerly look forward to continuing to innovate for SanDisk in its worldwide supply chain."

SanDisk, the world's largest supplier of flash memory data storage card products, designs, manufactures and markets industry-standard, solid-state data, digital imaging and audio storage products using its patented, high-density flash memory and controller technology. SanDisk is based in Sunnyvale, California.

The matters discussed in this news release contain forward-looking statements that are subject to certain risks and uncertainties as described under the caption, "Factors That May Affect Future Results" in the company's annual report on Form 10-K and quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission. The company cannot guarantee that it will succeed in selling its products in Asia and the Pacific Rim. The company assumes no obligation to update the information in this release.