Lexar Offers ActiveMemoryTM Technology to Camera Companies and Software Developers Through Royalty Free Licensing Program

FREMONT, CA, December 9, 2004 – Lexar Media, Inc. (Nasdaq: LEXR), a world leader in advanced digital media technologies, will offer a royalty-free license for its ActiveMemoryTM System (AMS) technology to digital camera and other consumer electronics manufacturers and software developers interested in providing their customers with unique workflow features and benefits. Previewed in September 2004, Lexar’s AMS technology is designed to optimize digital workflow to achieve enhanced interoperability between consumer electronics and flash memory cards.

“Created with professional photographers in mind and essentially adding intelligence to our flash memory cards, ActiveMemory is a revolutionary technology designed and engineered for image and information management needs,” said Petro Estakhri, Chief Technology Officer, Lexar. “We are excited about the performance and reliability potential of this emerging technology, and anticipate a multitude of applications becoming compatible. The many ways that ActiveMemory will positively improve information management is limitless."

While many digital cameras provide features for users to save their favorite settings, the benefits of using AMS technology to store such information on a memory card is unique, as it provides far reaching capabilities, such as immediate transfer of established information, to improve multi-user and multi-device working environments.

The first products to support the ActiveMemory technology are select Lexar Professional CompactFlash® cards, new Lexar Professional FireWire and USB 2.0 card readers, and Camera Bits’ Photo Mechanic™ 4.5 professional image browsing software distributed by Lexar.

At the center of AMS are Professional CompactFlash cards that are able to store user preferences and host device settings in a protected area on the card. These settings can only be modified by the host application that created them and can be used to auto-configure multiple ActiveMemory-enabled products within the system. These settings are preserved even when the card is re-formatted or other data files on the card are deleted, because the ActiveMemory data is stored outside the standard DOS file structure on the card.

“While the first implementation of ActiveMemory will be in our CompactFlash product line, we envision a multitude of applications for consumer digital photography and other consumer electronics devices in the future,” said John Omvik, director of professional product marketing, Lexar. “ActiveMemory could store a consumer’s print preferences and ownership information to help automate or streamline in-store or kiosk print ordering. It could also store slide show preferences for TVs with card slots or user default settings for different software applications,” he added.

The evolution of AMS technology’s capabilities extend well beyond the digital imaging space and could soon include mobile phones, printers and wireless networks. Virtually any hardware that supports a flash memory card could benefit from securely storing user information or application presets in a protected area on the card.

AMS includes a logo certification program and rights to ActiveMemory trademarks. Licensees will also be provided with a unique vendor code to access the protected portions of the memory system. Active Memory licenses will also be offered on a royalty bearing basis to digital media manufacturers who wish to incorporate the benefits of the ActiveMemory System in their product offerings.

For more information regarding ActiveMemory technology, please visit www.lexar.com/activememory.