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Lexar Introduces PowerToGo(TM) -- a Portable Working Environment to Increase Mobility for Its USB Flash Drive Line; New Offer Makes It Possible to Take Applications, Web Surfing Preferences and Multimedia On The Go

January 3, 2006

LAS VEGAS --(Jan. 3, 2006) Lexar Media, Inc. (Nasdaq:LEXR), a leader in advanced digital media and accessories today at the 2006 Consumer and Electronics Show (CES) announced its plans to incorporate PowerToGo(TM) into its line of JumpDrive(R) products, creating a portable working environment for its USB flash drive customers. PowerToGo will enable users to install and run most standard Windows applications from their Lexar JumpDrive. Using a customized solution provided by Ceedo Technologies Ltd., PowerToGo is being developed with an open standard. Lexar's Smart USB flash drive technology will be compatible with most consumer and electronic mobile devices as well as corporate computing environments.

Ideal for traveling executives, students, tech savvy consumers, small business owners or anyone who wants fast, easy access to their familiar PC environment, Lexar's PowerToGo will be truly portable. Simple, familiar interfaces will allow customers to run applications, carry browser favorites and personal profiles, web-surfing preferences, and instant messenger from any Windows-Based PC anywhere they go. By saving and storing personal PC settings applications and files directly on their JumpDrive, users can carry pictures, music, documents, presentations or client files with them to any PC and run their own virtual computing environment. PowerToGo will also provide the security of a private session: users can work with their files or surf the web and then simply unplug the JumpDrive safely, knowing that no trace will be left behind. Whether at a friend's house, the office, at an Internet cafe, airport terminal, or public library, this portable, personal, private tool will give users the ability to carry their data and applications in their pocket and use it whenever and wherever.

"Lexar has always looked beyond storage when developing its line of USB flash drives, understanding the vast potentials the USB technology is capable of offering consumers. PowerToGo reflects Lexar's continued commitment to providing customers with valuable functionality when using their USB flash drive," said Steffen Hellmold, Vice President and General Manager USB flash drive & OEM Products business unit, Lexar. "Unlike some competing solutions that are using proprietary solutions requiring software developers to maintain a separate code base for this platform, our solution will empower customers to use most of their Windows standard applications on the go."

At CES, South Hall Booth #30723, Lexar will showcase JumpDrive products demonstrating PowerToGo.

The PowerToGo solution will be available on most Lexar JumpDrives starting in Spring of 2006. Lexar also plans to make the PowerToGo solution available via download to its installed customer base.

About Lexar Media, Inc.

Lexar is a leading marketer and manufacturer of NAND flash memory products including memory cards, USB flash drives, card readers and ATA controller technology for the digital photography, consumer electronics, industrial and communications markets. The company holds over 92 issued or allowed controller and system patents, and licenses its technology to companies including Olympus Corporation, Samsung Electronics Co., Ltd., SanDisk Corporation and Sony Corporation. Lexar sells its memory cards worldwide and, through an exclusive agreement, also sells memory cards under the Kodak brand. Headquartered in Fremont, California, Lexar has operations in countries around the world. More information is available at http://www.lexar.com.

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements which are subject to the safe harbor provisions of the Private Litigation Reform Act of 1995. These statements include statements related to the benefits and availability of, and consumer demand for, Lexar's products, including the PowerToGo solution, and the growth opportunities available to Lexar. These forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those anticipated by these forward-looking statements. These risks include, among others, uncertainties related to competitive pressures; and that the growth and success of our business depends on our ability to achieve and maintain technology leadership, and to develop, sell and market products that are commercially accepted. Readers should also refer to the risk factors described in our filings with the SEC, including our most recently filed Form 10-K and Form 10-Q. We assume no obligation to update the information in this release.

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


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