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Music, Retail and Tech Leaders to Offer “slotMusic(TM)”: High Quality, DRM-Free MP3 Music on microSD(TM) Cards

September 22, 2008

Leaders in music, retail and flash memory technology today announced they’re bringing consumers an innovative, new physical music format, dubbed “slotMusic(TM).” microSD(TM) cards will soon be made available with pre-loaded, high quality, DRM-free MP3 music of top artists from EMI Music, SONY BMG, Universal Music Group, and Warner Music Group. A selection of slotMusic cards will first be available at brick-and-mortar and online stores throughout the U.S., including Best Buy and Wal-Mart, with Europe to follow. A complete list of slotMusic albums, availability and pricing will be announced in time for the coming holiday season. SanDisk Corporation (NASDAQ:SNDK), inventor of the ubiquitous microSD format, is leading the technology development behind slotMusic.

slotMusic cards enable consumers to instantly and easily enjoy music from their favorite artists without being dependent on a PC or internet connection. Users simply insert the slotMusic card into their microSD-enabled mobile phone or MP3 player to hear the music – without passwords, downloading or digital-rights-management interfering with their personal use.

“slotMusic offers consumers an immediate, tangible, and high quality alternative to CDs and digital delivery,” said Danielle Levitas, vice president, Consumer, Broadband & New Media, IDC. “This year, more than 1.2 billion mobile phones will ship globally, outstripping portable media players by nearly an order of magnitude – and this trend is accelerating.”

slotMusic cards will be packaged with a tiny USB sleeve ensuring seamless interoperability with all computers – Windows, Linux and Mac. The upshot is that slotMusic will enjoy an unparalleled, pre-existing installed base at launch: hundreds of millions of multimedia-phones, virtually any computer with a USB connector and a growing number of in-car sound systems will be able to play slotMusic cards.

The MP3-based music tracks will be played back at up to 320 kilobytes per second (kbps), offering a high quality music experience for the MP3 format.

Musicians will find slotMusic cards offer a compelling new way to express themselves to their fans. With 1GB(1) (gigabyte) of capacity, slotMusic cards can hold songs, as well as liner notes, album art, videos, and other creative content that an artist may choose. Consumers can also add their own content to a slotMusic card, creating a personal plug-and-play media library.

For photos, a quote sheet and other press material regarding today’s announcement, please visit www.slotmusic.org.

About EMI Music

EMI Music is the recorded music division of EMI Group Limited, one of the world’s leading music companies. EMI Music represents artists spanning all musical tastes and genres. Its record labels include Angel, Astralwerks, Blue Note, Capitol, Capitol Nashville, EMI Classics, EMI CMG, EMI Records, EMI Televisa Music, Manhattan, Mute, Parlophone and Virgin. Artists on EMI labels include Lily Allen, The Beatles, Coldplay, Corinne Bailey Rae, Gorillaz, Hot Chip, Norah Jones, The Kooks, Korn, Kylie Minogue, Katy Perry, Pink Floyd, Joss Stone, KT Tunstall, Keith Urban and Robbie Williams.

About SanDisk

SanDisk Corporation, the inventor and world’s largest supplier of flash storage cards, is a global leader in flash memory – from research, manufacturing and product design to consumer branding and retail distribution. SanDisk’s product portfolio includes flash memory cards for mobile phones, digital cameras and camcorders; digital audio/video players; USB flash drives for consumers and the enterprise; embedded memory for mobile devices; and solid state drives for computers. SanDisk (www.sandisk.com/corporate) is a Silicon Valley-based S&P 500 company, with more than half its sales outside the United States.

About SONY BMG MUSIC ENTERTAINMENT

SONY BMG MUSIC ENTERTAINMENT is a global recorded music joint venture with a roster of current artists that includes a broad array of both local artists and international superstars, as well as a vast catalog that comprises some of the most important recordings in history. Sony BMG Music Entertainment is 50% owned by Bertelsmann A.G. and 50% owned by Sony Corporation of America.

About Universal Music Group

Universal Music Group is the world’s leading music company with wholly owned record operations or licensees in 77 countries. Its businesses also include Universal Music Publishing Group, the industry’s leading global music publishing operation.

Universal Music Group’s record labels include Decca, Deutsche Grammophon, Disa, Emarcy, Fonovisa, Interscope Geffen A&M Records, Island Def Jam Music Group, Lost Highway Records, Machete Music, MCA Nashville, Mercury Nashville, Mercury Records, Philips, Polydor Records, Universal Motown Republic Group, Universal Music Latino, Universal Records South, and Verve Music Group as well as a multitude of record labels owned or distributed by its record company subsidiaries around the world. The Universal Music Group owns the most extensive catalog of music in the industry, which includes the last 100 years of the world’s most popular artists and their recordings. UMG’s catalog is marketed through two distinct divisions, Universal Music Enterprises (in the U.S.) and Universal Strategic Marketing (outside the U.S.). Universal Music Group also includes eLabs, its new media and technologies division; Bravado, its merchandising company; Twenty-First Artists, its full service management division; and Helter Skelter, its live music agency. Universal Music Group is a unit of Vivendi, a global media and communications company.

About Warner Music Group

Warner Music Group became the only stand-alone music company to be publicly traded in the United States in May 2005. With its broad roster of new stars and legendary artists, Warner Music Group is home to a collection of the best-known record labels in the music industry including Asylum, Atlantic, Bad Boy, Cordless, East West, Elektra, Lava, Nonesuch, Reprise, Rhino, Roadrunner, Rykodisc, Sire, Warner Bros. and Word. Warner Music International, a leading company in national and international repertoire, operates through numerous international affiliates and licensees in more than 50 countries. Warner Music Group also includes Warner/Chappell Music, one of the world’s leading music publishers.

(1) 1 gigabyte (GB) = 1 billion bytes.

SanDisk’s product and executive images can be downloaded from http://www.sandisk.com/corporate/media.asp

SanDisk and the SanDisk logo are trademarks of SanDisk Corporation, registered in the United States and other countries. slotMusic is a trademark of SanDisk Corporation. microSD and SDHC are trademarks. Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).

This press release contains certain forward-looking statements, including expectations for new product introductions, applications, markets, and customers that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Risks that may cause these forward-looking statements to be inaccurate include among others: there may be a slower adoption rate for these products in new markets that we are targeting or market demand for these products may grow more slowly than our expectations, these products may not perform as expected, these products may not be available when expected, and the other risks detailed from time-to-time in our Securities and Exchange Commission filings and reports, including, but not limited to, our Form 10-K and our quarterly reports on Form 10-Q. We do not intend to update the information contained in this press release.




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