Lexar Press Release

Lexar Adds Corel Corporation’s Digital Imaging Software to Line of Flash Memory Cards; Award-Winning Paint Shop(TM) Family Software to Enhance Value of Lexar Memory Cards

LAS VEGAS—(Business Wire)—Jan. 3, 2006 Lexar Media, Inc. (Nasdaq:LEXR), a world leader in advanced digital media technologies, today announced that the company is adding further value to its widely popular lines of flash memory products by including digital imaging software from Corel Corporation—valued at $30 to $100 per application—to select flash memory cards in Lexar’s Professional, Platinum and Value lines. The included software programs are Corel(R) Paint Shop Pro(R) 9, Corel(R) Photo Album(TM) 6 (Standard Edition) and Corel(R) Photo Album(TM) 6 (Starter Edition)—all designed to help photographers of all levels enhance, edit and manage their images.

“While we are adding value to our total memory card package, we also are improving the digital imaging experience for a countless number of photographers,” said Jim Gustke, vice president, memory card business unit, Lexar. “The free bundled software allows the user to accomplish a variety of popular image editing, managing and sharing tasks. Like so many of our photography products, the Corel applications will further improve the user’s digital imaging workflow,” he added.

Corel’s Paint Shop Family software will be packaged with Lexar’s CompactFlash(TM), Secure Digital(TM) (SD) and Memory Stick(TM) format flash memory cards within each product family. In early 2006, Paint Shop Pro 9 will be included with all Lexar Professional flash memory cards, while Paint Shop Photo Album 6 (Standard Edition) will be included with all Platinum flash memory cards. Customers purchasing cards from Lexar’s Value line will receive Paint Shop Photo Album 6 (Starter Edition).

“Lexar’s customer base is the primary target for Corel’s digital imaging software products,” said Blaine Mathieu, Corel’s general manager of Digital Imaging. “Like Lexar, we deliver sought after applications for every photographer, from entry-level to professionals. Customers who value reliable, high-performance flash memory cards also value imaging software that improve their digital imaging experience,” he added.

By adding Paint Shop Pro 9 to Lexar’s Professional line of flash memory cards, the company is offering professional photographers an unprecedented digital imaging package. In addition to unequaled reliability and virtually instantaneous data write and read speed performance, Lexar’s full line of Professional flash memory cards includes a comprehensive customer support and lifetime warranty. In addition, the cards include a full version of Image Rescue 2.0, Lexar’s award-winning image recovery software and a trial version of Photo Mechanic(TM), the popular image browsing software application by Camera Bits.

Lexar will showcase its memory cards at CES, South Hall, Booth #30723.