License To Ritek Settles Litigation
MILPITAS, CALIFORNIA and HSIN-CHU, TAIWAN, June 29, 2007 - SanDisk Corporation (NASDAQ: SNDK) and Ritek Corporation today announced the settlement of their patent litigation. The companies entered into a royalty bearing patent cross-license agreement and SanDisk agreed to dismiss all current patent infringement litigation against Ritek.
"We are very happy to sign a cross-license agreement with each other and reach a win-win solution between both parties," said Eric Ai, Deputy Announcer of Ritek. "We are now the only Taiwanese manufacturer of flash cards, USB flash drives and storage systems that is licensed by SanDisk. SanDisk's valuable intellectual property umbrella will enable further growth of our business. Our customers can use Ritek flash cards and USB drives with certainty that there will be no downstream interruption from SanDisk."
E. Earle Thompson, SanDisk's Chief Intellectual Property Counsel, said, "This cross license is a significant step in ensuring that SanDisk's extensive card and storage system patents are respected globally. We are pleased with Ritek's decision to be the first Taiwanese manufacturer to take our new non-volatile memory system license agreement. Consistent with our longstanding licensing policy, we will license other manufacturers of flash cards, USB flash drives and storage systems, while vigorously pursuing parties that infringe or contribute to the infringement of our Intellectual Property."
The license and royalty terms of the cross license and settlement are confidential.
SanDisk is the original inventor of flash storage cards and is the world's largest supplier of flash data storage card products using its patented, high-density flash memory and controller technology. SanDisk is headquartered in Milpitas, CA and has operations worldwide with more than half its sales outside the U.S.
By combining the Right Technology at the Right Time with the Right Product, RITEK has earned its name in the high-tech field of storage media. By maintaining an innovative business vision from the start, and combining it with a strong commitment to innovation and exceptional customer services, RITEK had successfully become the leading manufacturer of storage media in the world.
SanDisk's web site/home page address: http://www.sandisk.com
SanDisk's product and executive images can be downloaded from http://www.sandisk.com/about-sandisk/media-kit.aspx
SanDisk and the SanDisk logo are trademarks of SanDisk Corporation, registered in the United States and other countries. iNAND, mDOC and MegaSIM are trademarks of SanDisk Corporation, and/or its subsidiaries. microSD, microSDHC and miniSD are trademarks. Memory Stick Micro M2 is a trademark of Sony Corporation. All brand names mentioned herein are for identification purposes only and may be trademarks of their respective holder(s).
This news release contains forward-looking statements, including statements about SanDisk's licensing program and Ritek's sales that are based on the companies' current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate and may significantly and adversely affect the companies' business, financial condition and results of operations. Risks that may cause these forward-looking statements to be inaccurate include among others: future selling price erosion may be more severe than the companies' expectations due to decreased demand or excess industry capacity of flash memory, new competition from semiconductor company licensees of SanDisk, adverse global economic and geo-political conditions, including adverse currency exchange rates and acts of terror and war, the timely development, internal qualification and customer acceptance of new products, fluctuations in license and royalty revenues, business interruption due to earthquakes, hurricanes, pandemics, power outages or other natural disasters and other global events outside of the companies' control which could adversely impact consumer confidence and hence reduce demand for our products, and the other risks detailed from time-to-time under the caption "Risk Factors" and elsewhere in SanDisk's Securities and Exchange Commission filings and reports, including, but not limited to, its Form 10-K for the fiscal year ended December 31, 2006 and its quarterly reports on Form 10-Q. Future results may differ materially from those previously reported. The companies do not intend to update the information contained in this release.
Lori Barker Padon