Lexar Media Settles Patent Dispute with Ritek Corporation, Supplier to Fuji Photo Film, U.S.A.

FREMONT, CA, October 3, 2003 -- Lexar Media, Inc. (Nasdaq: LEXR), a leading developer of flash mass storage systems and an innovator of high-performance, USB-enabled CompactFlash™ digital film, announced today that it settled its patent dispute with Ritek Corporation.

Ritek supplied CompactFlash cards to Fuji Photo Film U.S.A. between 2001 and 2002. Lexar sued Fuji in July 2002 alleging that Fuji’s sales of flash based memory products infringe Lexar’s patents. Fuji asserted a third party complaint against Ritek, bringing Ritek into the action. Under the terms of the settlement, Ritek will make a one-time payment to Lexar Media for past damages for its sales of CompactFlash cards to Fuji. All other terms of the settlement are confidential.

The settlement is limited to CompactFlash cards purchased from Ritek by Fuji and does not include any other products. Except for these specific products, all of Lexar’s claims against Fuji remain pending.

“We are pleased to reach this settlement with Ritek which again recognizes the strength and depth of Lexar’s IP portfolio,” said Eric Whitaker, vice president and general counsel of Lexar Media. “We are also encouraged by the judge’s scheduling order as we believe it is the best way to efficiently resolve our other patent disputes.”

During hearings on September 17, 2003 and October 1, 2003, the United States District Court also determined that a “Markman” hearing on claim construction will be held in December 2003 with respect to six of Lexar’s patents. The patents at issue in this first phase will be Lexar’s U.S. Patent No.’s 5,479,638 entitled “Flash Memory Mass Storage Architecture Incorporation Wear Leveling Technique”; 6,145,051 entitled “Moving Sectors Within Block of Information in a Flash Memory Mass Storage Architecture”; 6,397,314 “Increasing The Memory Performance Of Flash Memory Devices By Writing Sectors Simultaneously To Multiple Flash Memory Device”; 6,202,138 “Increasing The Memory Performance Of Flash Memory Devices By Writing Sectors Simultaneously To Multiple Flash”; 6,262,918 “Space Management For Managing High Capacity Nonvolatile Memory”; and 6,040,997 “Flash Memory Leveling Architecture Having No External Latch.” Litigation with respect to the other patents at issue will be stayed until after Lexar’s claim construction against Toshiba is concluded.

About Lexar Media, Inc.
Lexar Media, Inc. 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. As 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 60 controller and system 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.

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 scope and future value of our patent portfolio. 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 could become subject to additional intellectual property claims that could divert management’s time and attention, could be time consuming and expensive to defend and could limit our access to important technology, and that if we are unable to adequately protect our intellectual property, our competitors may gain access to our technology which could harm our ability to successfully compete in our market. 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, 2002 filed with the SEC on March 31, 2003, as amended on July 31, 2003. Lexar Media assumes no obligation to update the forward-looking information contained in this news release.