SEOUL, KOREA and MILIPITAS, CA, March 21, 2007 - Hynix Semiconductor Inc. and SanDisk Corporation (NASDAQ:SNDK) announced today that they have reached an agreement for a patent cross license covering the Flash memory components of both companies and an agreement for product supply. Concurrently, the companies signed a memorandum of understanding that outlines a joint venture contemplated between the two companies which will manufacture memory components and sell NAND memory system solutions.
Details of the joint venture will involve equal capital investments by both companies in dedicated production capacity at Hynix. The parties' x4 technology cooperation was started between msystems Ltd. and Hynix before the acquisition of msystems by SanDisk. Other terms of the agreement are confidential to the parties.
O.C.Kwon, Senior Vice President of Hynix Semiconductor Inc., said, "We are very pleased to successfully conclude negotiations with SanDisk in a way that will benefit the customers and shareholders of both companies. With the patent cross license behind us, we are able to put aside distractions and turn our attention to a very promising relationship in the development of x4 technology. We look forward to building on this relationship to our companies' mutual benefit."
Eli Harari, Chairman of the Board of Directors and CEO of SanDisk, said, "This cross license agreement resolves all IP issues between Hynix and SanDisk, and allows each company to focus on maximizing its opportunities. Hynix has done an outstanding job in NAND flash manufacturing in the past few years, and I look forward to cooperating with Hynix through the joint venture planned between our two companies."
About Hynix Semiconductor Inc.
Hynix Semiconductor Inc. of Icheon, Korea, is the world's top tier memory semiconductor supplier offering various Dynamic Random Access Memory chips ("DRAMs") and Flash memory chips to a wide range of established international customers. The Company's shares are traded on the Korea Stock Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about Hynix is available at www.hynix.com.
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.
This news release contains forward-looking statements, including statements about the proposed joint venture that are based on the companies' current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate and may significantly and adversely affect the companies' business, financial condition and results of operations. Risks that may cause these forward-looking statements to be inaccurate include among others: the companies being unable to agree on the definitive terms of a joint venture, slower than expected growth in market demand for the joint venture's products or a slower adoption rate for these products in current and new markets than the companies currently expect, future selling price erosion may be more severe than the companies' expectations due to decreased demand or excess industry capacity of flash memory, interruptions of or delay in supply from any of the semiconductor manufacturing or subcontracting facilities, including test and assembly facilities that supply products to the joint venture, slower than expected expansion of SanDisk's global sales channels, fluctuations in operating results, unexpected yield variances, inability to make geometry conversions in a timely manner, less than expected growth in the average megabyte capacity per finished good, higher than expected operating expenses, higher than anticipated capital equipment expenditures, adverse global economic and geo-political conditions, including adverse currency exchange rates and acts of terror and war, the timely development, internal qualification and customer acceptance of new products that are based on smaller geometry NAND and x4 technology, fluctuations in license and royalty revenues, business interruption due to earthquakes, hurricanes, pandemics, power outages or other natural disasters where the joint venture will manufacture and assemble products, potential impact of high energy prices and other global events outside of the companies' control which could adversely impact consumer confidence and hence reduce demand for our products, and the other risks detailed from time-to-time under the caption "Risk Factors" and elsewhere in SanDisk's Securities and Exchange Commission filings and reports, including, but not limited to, its Form 10-K for the fiscal year ended December 31, 2006 and its quarterly reports on Form 10-Q. Future results may differ materially from those previously reported. The companies do not intend to update the information contained in this release.
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Lori Barker Padon
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