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LEXAR ADDS INNOVATIVE STORAGE CAPACITY METER WITH ELECTRONIC PAPER DISPLAY FROM E INK

Lexar Adds Innovative Storage Capacity Meter With Electronic Paper Display From E Ink

Las Vegas, NV. - January 3, 2006 – Lexar Media, Inc. (NASDAQ: LEXR), a leader in advanced digital media and accessories, today announced plans to add a unique storage capacity meter to its popular USB flash drives by integrating an innovative electronic paper display from E Ink Corporation. The E Ink display is a paper-thin, shatter proof, easy to read meter that does not rely on power to show the capacity information when disconnected from the computer. On display at the 2006 International Consumer Electronics Show (CES), Lexar JumpDrive® Mercury will be the first USB flash drive to feature the on-board non-volatile smart capacity meter that will let customers easily monitor their available storage capacity.

"E Ink's display products are paper-thin, low-power and ideal for a wide range of products from smart mobile devices to simple indicators such as those offered by Lexar," said Darren Bischoff, E Ink Senior Marketing Manager. "Lexar's JumpDrive is a great example of a product truly capable of leveraging all the benefits of our E Ink On Display™ solution. With this widespread commercial implementation of our technology, Lexar will be the highest volume provider of products with electronic paper displays."

Thinner than a credit card at less than 0.7mm, E Ink's rugged bar graph display is an all-plastic construction that does not require a battery to maintain the display of the available storage capacity on the JumpDrive. This makes it possible for Lexar to add the benefit of an exterior gauge, without sacrificing the light, durable and portable design of its products. In addition, the integrated capacity meter on JumpDrive Mercury will be a fully contained solution that automatically discovers the available capacity and updates the display without involving any host software.

"Innovation continues to be the dominate focus for Lexar's popular line of USB flash drives, which helps us offer customers cool features based on revolutionary technologies like the On Display solution from E Ink," said Steffen Hellmold, vice president and general manager USB flash drive and OEM products business unit, Lexar. "JumpDrive Mercury will be the first product in Lexar's line that demonstrates the results of our partnership with E Ink."

E Ink's display technology uses black and white particles that are contained in tiny clear capsules. Once set to an image, the display reflects light just like ordinary paper. This makes it readable even in difficult conditions such as direct sunlight and is perfect for those trying to catch a glimpse of their remaining storage on the go.

Lexar will showcase its broad line of flash based technology and solutions, including JumpDrive Mercury, at CES, South Hall Booth #30723.

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 www.lexar.com.

About E Ink Holdings
Founded in 1992 by Taiwan's leading papermaking and printing group YFY (1907.TW), E Ink Holdings Inc. "E Ink" (8069.TW) is the pioneer of TFT and ePaper business in Taiwan. Its corporate philosophy aims to deliver revolutionary products, user experiences, and environmental benefits through advanced technology development. This vision has led to its continuous investments in the field of ePaper display as well as its 2008 acquisition of Hydis Technologies, manufacturer of the world's best wide viewing angle LCDs and its 2009 acquisition of E Ink Corp., the worldwide leader in ePaper. Listed in Taiwan's GreTai Securities Market and the Luxembourg market, E Ink is now the world's largest supplier of displays to the eBook market. For corporate information, please visit www.einkgroup.com; for EPD information, please visit www.eink.com / tw.eink.com; and for FFS information, please visit www.hydis.com.