SUNDISK SLASHES PRICES ON FLASH MASS STORAGE CARDS

SANTA CLARA, CA, July 1, 1994 -- SunDisk Corporation, the world's leading
supplier of PCMCIA flash mass storage cards, announced today that it is
significantly reducing prices to its distribution channel. The price
decreases to distributors should result in end-users paying 10 to 30
percent less for SunDisk-manufactured flashdisk cards.

The price reductions are effective immediately and include SunDisk's full
line of SDP5 model PCMCIA Type II flashdisk cards with capacities ranging
between 2 and 80MB. All capacities are achieved with Stac's Stacker
compression software (which effectively doubles the capacity of the cards)
as retail outlets sell cards with compression software preloaded.

Nelson Chan, SunDisk marketing director, said, "We are hitting new low
price points with these price decreases. For example, we expect that
retail outlets will sell our 3.6MB flashdisk cards for under $200 and our
10MB model for less than $400."

Retail prices for 3.6MB SunDisk-manufactured flashdisks are expected to
drop from $229-249 to $179-199. The 10MB cards will be decreased from
$419-459 to $379-399, and the 20MB cards will be reduced from $619-669 to
$579-599. SunDisk expects that the retail price of 40MB flashdisks will
drop from $ 1195-1295 to $949-999. SunDisk's highest capacity flashdisk
card -- the 80MB model -- should sell in the $1399-$1499 range, down
considerably from the current $1895-1995 retail price.

Chan added, "From our consumer surveys, we know that the new, lower prices
will result in many end-users buying their first flashdisk storage card
for their PDA, subnotebook or other computer system. And we believe that
the new prices also will encourage computer users to purchase higher
capacity cards then they had originally planned."

SunDisk flashdisks are sold at numerous retail outlets including Comp USA,
Circuit City, Fry's Electronics, Computerland, Radio Shack and NCA. The
rugged, solid-state storage devices are sold under the SunDisk label and
are also privately labeled by numerous other firms including
Hewlett-Packard, IBM, Casio, Fujitsu, Seagate and Verbatim.

SunDisk, which holds approximately a 60 percent market share of the
worldwide market for flash mass storage cards, designs, manufactures and
markets industry-standard, solid-state mass storage products using
proprietary high density flash memory technology. SunDisk mass storage
cards are "plug and play" in almost all notebook, subnotebook and handheld
computers. SunDisk, a privately-held firm, is based in Santa Clara, CA.

SunDisk Corp
3270 Jay St
Santa Clara, CA 95054
408-562-0500,  fax 408-562-0503

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