SanDisk Corporation announced that Imation Corp. has signed a patent cross-license agreement with SanDisk to settle two cases filed by SanDisk in Federal District Court against Imation alleging infringement of flash memory system-level patents.

For more information visit: www.sandisk.com ; www.imation.com

Unedited press release follows:

SANDISK ANNOUNCES CROSS-PATENT LICENSE AGREEMENT WITH IMATION CORP., SETTLES PATENT LITIGATION

Imation Will Pay SanDisk Royalties and Enters Into Stipulated Judgment

Milpitas, Calif., February 2, 2011- SanDisk Corporation (NASDAQ: SNDK), the global leader in flash memory cards, today announced that Imation Corp. has signed a patent cross-license agreement with SanDisk to settle two cases filed by SanDisk in Federal District Court against Imation alleging infringement of flash memory system-level patents.

Under the terms of the cross-license, Imation will pay SanDisk royalties on various flash memory products, including USB flash drives and solid state disk (“SSD”) drives. In addition, Imation entered into a stipulated judgment of infringement and validity in SanDisk’s favor on claims of U.S. Patent No. 7,137,011, which covers the use of certain encryption technology in a memory card.

The specific terms of the agreement are confidential. The two infringement cases remain pending against Kingston Technology Company, Inc.

About SanDisk
SanDisk Corporation is the global leader in flash memory cards – 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 is a Silicon Valley-based S&P 500 company, with more than half its sales outside the United States.