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Lexar Media¤½¥q (Nasdaq: LEXR) ¬O¤@¶¡»â¾É¥«³õªº¼Æ½X¦sÀx¥d¡BUSB°{½L¡BŪ¥d¾¹©MATA ±±¨î¾¹ªº¾P°â©M¨î³y°Ó¡C¨ä¸Ñµª¬ì§ÞÀ³¥Î¤_¼Æ½XÄá¼v¡B®ø¶O¹q¤l¡B¤u·~©M³q«H¥«³õ¡CLexar Media¤½¥q²{¤µ¾Ö¦³¶W¹L70­Ó±±¨î¾¹©M¨t²Î±M§Q¡C Lexar Media§Þ¥º±M§QÅvªº¯S³\«ùµPªÌ¥]¬AOlympus, SanDisk, Samsung Electronics©MSony¡C±ýª¾§ó¦h¤½¥q«H®§, ½Ð¹qLexar Media¤½¥q +1 800-789-9418 ©Îµn www.lexar.com ºô¯¸¡C

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 projections about our business and financial outlook, anticipated financial results, anticipated consumer demand for digital still cameras and portable storage devices generally and demand for our products in particular, as well as the growth of the digital media and digital photography markets. 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: our operating results and gross margins are difficult to predict and may fluctuate significantly; the cost of flash memory is a significant part of our products¡¦ cost structure, and if we are unable to obtain sufficient quantities of flash memory in a timely manner and at competitive prices, we may not be able to manufacture and deliver products to satisfy our customers¡¦ requirements, compete effectively in the market or maintain our targeted gross margins; our licensing revenues have declined significantly because our fixed license payments have transitioned to variable-based royalties and we may be unable to secure new license or royalty revenue; if we are unable to manage our inventory levels, our operating results will be negatively impacted; future average selling prices may continue to erode due to excess industry capacity and extreme price competition; many of our retail customers and distributors have price protection which could require us to make large payments if we reduce prices; if we are unable to anticipate demand and pricing of our products or if we are unable to effectively manage changes in market conditions as well as the distributor channels and relationships, our operating results will be harmed; the solid-state storage market has evolved and is evolving and we may have to pay a royalty to sell certain flash card formats or may not be able to obtain rights to manufacture them at all; increased competition in the digital media market may lead to a decrease in our revenues and market share; we must be able to develop and introduce new products and services on a timely basis that are accepted by our customers and consumers in order to compete effectively; if we are unable to achieve or maintain our technology leadership position or to obtain rights to develop and manufacture new form factors on acceptable terms, our gross margins and revenues would likely decline significantly; and we are involved in intellectual property, securities and products class action litigation, and may become involved in additional litigation, that could divert management's time and attention, be time- consuming and expensive to defend and limit our access to important technology. 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, 2003, filed with the Securities and Exchange Commission on March 15, 2004, and its Quarterly Report on Form 10-Q for its fiscal quarter ended March 31, 2004, filed with the Securities and Exchange Commission on May 7, 2004. Lexar Media assumes no obligation to update the forward-looking information contained in this news release.


Lexar Media, JumpDrive and the Lexar Media logo are trademarks of Lexar Media, Inc. All other brand or product names are trademarks or registered trademarks of their respective holders.


Contact Information:

Company Contact
Brian McGee
Chief Financial Officer
510-413-1201
bmcgee@lexarmedia.com

Investor Relations
Jennifer Jarman
The Blueshirt Group
415-217-7722
jennifer@blueshirtgroup.com


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