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EXHIBIT 99.1
CONTACT: Annette Keller (949) 455-2298 Not For Release
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Toshiba America Electronic Components, Inc. Until May 9, 2000
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Annette [email protected]
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Bob Goligoski (408) 542-0463
SanDisk Corporation
[email protected]
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A.
TOSHIBA AND SANDISK SIGN AGREEMENT TO INVEST
$700 MILLION IN FAB PLANT TO PRODUCE FLASH MEMORY
New Company - FlashVision LLC - Is Created;
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600 Workers To Be Hired At Virginia Fab
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MANASSAS, VA, May 9, 2000 - Toshiba Corporation and SanDisk Corporation
(NASDAQ:SNDK) today signed an agreement to create a new semiconductor company -
FlashVision LLC - to produce advanced flash memory, utilizing fabrication space
at Dominion Semiconductor in Manassas, VA. Toshiba and SanDisk will each get 50
percent of Dominion's flash memory production and will separately market and
sell their share of the output of the joint venture production to their
respective customers. The NAND memory wafers will primarily be used to
manufacture flash memory cards for use in digital cameras, digital music players
and future generations of cell phones. By 2002, the flash memory production
capacity of the joint venture is projected to be able to support more than $1
billion in annual sales.
The agreement was announced today at a news conference in Manassas attended
by Virginia Governor James S. Gilmore III, state and local officials and
business leaders and representatives from Toshiba, SanDisk and Dominion
Semiconductor.
Yasuo Morimoto, president and CEO, Toshiba Corporation Semiconductor
Company, welcomed the new joint venture and said, "FlashVision will bring
together Toshiba's advanced semiconductor process technologies and SanDisk's
original multilevel cell technology. The company will build on the excellent
potential of NAND flash to produce cost-effective, next generation devices and
can look forward to a very bright future."
Eli Harari, president and CEO of SanDisk, said, "It is an honor and a
pleasure for SanDisk Corporation to participate today with Toshiba Corporation
in the launching of this exciting FlashVision joint venture. In the short time
we have worked with the Dominion manufacturing team, we are impressed with their
high professionalism, dedication, warm hospitality and passionate desire to help
us launch FlashVision right here at Dominion Manassas. The markets for the flash
memory that will be manufactured at Dominion are projected to grow rapidly in
the coming decade. SanDisk, Toshiba, the state of Virginia and the local
government at Manassas are committed to work together with the Dominion team to
make FlashVision a commercial success. I am confident that FlashVision will
produce the most advanced and most competitive flash storage products in the
world, thereby creating an engine of growth and prosperity for all
participants."
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Under the strategic joint venture, Toshiba and SanDisk plan to spend
approximately $700 million to equip existing fabrication space at Dominion. The
investment costs and ownership of FlashVision will be shared equally by both
companies. Dominion expects to hire an additional 600 workers for production for
FlashVision with volume production of NAND flash memories expected to start in
the second half of 2001 and achieve high volume mass production in 2002.
In addition to the joint venture company, Toshiba and SanDisk will work
together to develop 512 megabit (Mbit), 1 gigabit (Gbit) and 2 Gbit flash
memories -- along with future generations of flash memories -- employing 0.16
and 0.13 micron process technologies. The flash memory devices will utilize
SanDisk's proprietary multilevel cell (MLC) flash technology. In addition, the
companies will develop advanced controllers including Secure Digital (SD) Memory
Card controllers. The agreement is expected to close no later than June 30,
2000, pending satisfactory completion of due diligence by SanDisk and Toshiba.
Toshiba Corporation is a leader in information and communications systems,
electronic components, consumer products, and power systems. The company's
integration of these wide-ranging capabilities assures its position as a leading
company in semiconductor, LCD and other electronic devices. Toshiba has 198,000
employees worldwide and annual sales of over $50 (US) billion. Visit Toshiba's
website at http://www.toshiba.co.jp
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SanDisk Corporation, the world's largest supplier of flash data storage
products, designs, manufactures and markets industry-standard, solid-state data,
digital imaging and audio storage products using its patented, high density
flash memory and controller technology. SanDisk is based in Sunnyvale, CA. Visit
SanDisk's website at http://www.sandisk.com.
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The matters discussed in this news release contain forward looking
statements that are subject to certain risks and uncertainties including but not
limited to the venture's ability to successfully produce wafers in commercial
quantity, market demand and those factors described under the caption "Factors
That May Affect Future Results" in the company's annual report on Form 10-K and
quarterly reports on Form 10-Q, filed with the Securities and Exchange
Commission. The company assumes no obligation to update the information in this
release.
All trade names are either registered trademarks or trademarks of their
respective holders.
