SanDisk Announces Construction of Second Phase of Fab 5 to Prepare for Next Generation Manufacturing Technologies

SanDisk Corporation (NASDAQ: SNDK), a global leader in flash memory storage solutions, today announced that the construction of the phase two shell of the Fab 5 joint venture wafer fabrication facility located in Yokkaichi, Japan, will begin in August 2013 with expected completion in mid-2014.

SanDisk expects to use phase two of Fab 5 primarily for technology transitions of existing Yokkaichi wafer capacity. The new cleanroom will provide the space needed for additional equipment required for transitioning the wafer capacity in Fab 3, Fab 4 and phase one of Fab 5, to next generation 2D NAND technologies and to early generations of 3D NAND technology. The Fab 5 plans are consistent with the company’s strategy outlined during SanDisk’s Investor Day May 8 and there are no changes to SanDisk’s capital expenditure plans.

Fab 5 will have an earthquake absorbing structure and is designed to minimize environmental impact. Extensive use of LED lighting throughout the facility and up-to-date energy-saving production facilities, along with full and effective use of waste heat, are expected to reduce CO₂ emissions to a level 13 percent lower than for Fab 4.

About SanDisk

SanDisk Corporation (NASDAQ: SNDK) is a global leader in flash memory storage solutions, from research and development, product design and manufacturing to branding and distribution for commercial and retail channels. Since 1988, SanDisk's innovations in flash memory and storage system technologies have provided customers with new and transformational digital experiences. SanDisk's diverse product portfolio includes flash memory cards and embedded solutions used in smart phones, tablets, digital cameras, camcorders, digital media players and other consumer electronic devices, as well as USB flash drives and solid-state drives (SSD) for the computing market. SanDisk's products are used by consumers and enterprise customers around the world.

SanDisk is a Silicon Valley-based S&P 500 and Fortune 500 company, with more than half its sales outside the United States. For more information, visit www.sandisk.com.

© 2013 SanDisk Corporation. All rights reserved. SanDisk is a trademark of SanDisk Corporation, registered in the United States and other countries. 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 of anticipated construction schedule timing and completion, as well as the anticipated capabilities, characteristics and intended usage of Fab 5 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: if we are unable to reduce our manufacturing costs to keep pace with reductions in average selling prices, our gross margins may be harmed; our reliance on and investments in captive manufacturing capacity limit our ability to respond to fluctuations in supply and demand; and we rely substantially on our ventures and strategic partnerships with Toshiba, which subjects us to risks and uncertainties that could harm our business, financial condition and operating results; natural disasters or epidemics in the countries where we or our suppliers operate could harm our operations; as well the other risks detailed from time-to-time in our Securities and Exchange Commission filings and reports, including, but not limited to, our most recent quarterly report on Form 10-Q and our annual report on Form 10-K. We do not intend to update the information contained in this news release.