Lexar Media Announces New Line of Memory Stick PRO Products

LAS VEGAS (CES, Booth #10728), January 9, 2003-- Lexar Media, Inc. (Nasdaq:LEXR), a leading designer, developer and marketer of award-winning high-performance digital media and accessories, today announced plans to manufacture and distribute Memory Stick PRO™. The new media format offers high capacities and advanced performance, and is designed for use in Memory Stick PRO compatible host devices. The Memory Stick PRO, when produced by Lexar Media, will integrate the company's proprietary controller technology to achieve advanced speed performance.

Lexar Media plans to begin shipments of Memory Stick PRO this spring, in time for the future launch of Memory Stick PRO compatible products. Lexar Media Memory Stick PRO media will be available in capacities of 256MB, 512MB and 1GB.

"We are delighted to be partnered with Lexar Media, which has collaborated with Sony in support of the Memory Stick format for over 3 years now," said Masaharu Yanaga, Senior General Manager of the Memory Stick Division, Sony Corporation. "Having Lexar Media support Memory Stick will further strengthen our Memory Stick platform strategy. Together with Lexar Media and other partners, we will continue to work toward making Memory Stick a standard recording media throughout the world."

"Since Lexar Media began manufacturing Memory Stick, the format has grown to be a major portion of the overall digital media market and an important part of our product line-up," said Eric Stang, president and CEO, Lexar Media. "Memory Stick PRO offers a significant step forward in terms of expanding the capacity and performance of Memory Stick. The addition of Memory Stick PRO to our product line allows us to continue our leadership position in this rapidly growing segment."

Memory Stick PRO format will be equipped with MagicGate™, a copyright protection technology that consists of authentication and encryption technologies. The authentication technology ensures that protected content is only transferred between compliant devices and media, and that protected content is recorded and transferred in an encrypted format to prevent unauthorized copying or playback.

The Memory Stick PRO format also provides a unique personal data protection technology for removable media that allows users to securely and easily control access to their personal information stored on a Memory Stick PRO media.

Sony introduced Memory Stick in September of 1998. In April 2000, Lexar Media and Sony signed a joint technology agreement that included rights for Lexar Media to manufacture and market Memory Stick. Lexar Media is currently developing and integrating its proprietary controller technology into Memory Stick PRO.

About Lexar Media, Inc.
Lexar Media, Inc. (Nasdaq: LEXR) is a leading designer, marketer and licensor of award-winning removable flash-based digital storage media, card readers and ATA controller solutions for the digital photography, consumer electronics, industrial and communications markets. Lexar Media brands digital memory cards in the industry's most popular formats including CompactFlash, SmartMedia, Memory Stick, MultiMediaCard and Secure Digital. A digital storage innovator, Lexar Media was the first to develop and advance proprietary read-write speed standards for its USB-enabled CompactFlash cards and holds over 40 memory and controller patents. Licensees of Lexar Media's technology include Olympus, SanDisk, Samsung Electronics and Sony. Headquartered in Fremont, California, Lexar Media also has offices in London and Tokyo. Lexar Media is a member of the Russell 2000 Index. For more information, please call 1-800-789-9418 or visit www.lexar.com.

Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the safe harbor created by those sections. These forward-looking statements include statements related to the benefits of and demand for Lexar Media's products and the growth opportunities available to Lexar Media. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements. These risks include that we market our products primarily on the basis of their superior technology and if we are unable to achieve or maintain technology leadership our gross margins and revenues would likely decline significantly and increased competition may lead to a decrease in our revenues and market share. Readers should also refer to the risk factors described in Lexar Media's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for its fiscal year ended December 31, 2001, filed with the Commission on April 1, 2002. Lexar Media assumes no obligation to update the forward-looking information contained in this news release.