Lexar Rocks CES With New Digital Music Players

LAS VEGAS, January 5, 2005 – Lexar Media, Inc. (Nasdaq: LEXR), a leader in advanced digital media and accessories, today at The International Consumer Electronic Show (CES), exhibiting in the South Hall (booth #31574), announced two new additions to its expanding line of digital music players with the high performance LDP-800 and the economical LDP-200. Joining Lexar's popular digital music players, the LDP-400 and LDP-600, the new models are feature rich, support both MP3 and WMA music formats, sport smart, pocket-sized designs and are compatible with Microsoft® Windows Media® DRM for playback of downloaded songs from on-line music services.

"The demand for flash-based digital music players continues to grow, with 23 million players estimated to have shipped worldwide in 2004*", said Bobby Billman, vice president of marketing, Lexar. "With Lexar's expertise in digital media technology, we are tapping into this growing market by creating a versatile line of Flash based digital music players with broad appeal to a wide variety of consumers."

LDP-800: The Ultimate Sounding Digital Music Player
Standing out among competitors in the MP3 arena, Lexar's new LDP-800 is stacked with features providing premium audio performance. The LDP-800 achieves its stunning musical clarity and performance through state-of-the-art audio component technology. To further enhance music playback, the LDP-800 utilizes Emersys EMX audio technology to provide a realistic 3-D sound stage while using 2-channel audio. The LDP-800 also supports Ogg Vorbis as an additional audio format that gives higher quality audio at lower bit rates. With these innovative technologies, the LDP-800 is the ultimate sounding digital music player today.

For crisp, clear music playback, the LDP-800 features a digital line-out that easily connects the player to home entertainment systems so listeners are able to experience the purest possible digital connection. Line-in recording also lets users connect the LDP-800 to an audio source and convert music directly to WMA files. A high-contrast, vibrant OLED display makes it easy to access all functions, and a built-in FM transmitter lets users broadcast music to any FM radio.

Users can also expand the on-board storage capacity of the LDP-800 using the built-in SD card slot. The robust LDP-800 also includes an FM tuner, FM recorder, voice recorder, a rechargeable lithium polymer battery and a high-speed USB 2.0 interface for fast downloads. The LDP-800 is expected to be available in March at a suggested retail price of $159.99 for the 256MB version and $199.00 for the 512MB version. Higher capacities will follow.

LDP-200 - High-performance, High-Value
Ideal for consumers looking for a compact, easy-to-use digital music player, the Lexar LDP-200 offers a convenient and simple management system, versatility and portability. Music is stored on SD memory cards and accessed using the player's SD card slot - providing users with unlimited storage capacity. Using multiple SD cards, users can create favorite music playlists, and manage entire music libraries stored on removable SD cards. For added flexibility, the LDP-200 also serves as an SD card reader, making it a handy data transfer device. The LDP-200 is expected to be available in February 2005 in four different configurations with and without a bundled Lexar SD card, including a 0 MB version at a suggested retail price of $39.99 as well as 256MB, 512MB and 1GB versions (at suggested retail prices of $89.99, $109.99 and $149.99, respectively).

"With the addition of the LDP-800 and LDP-200, Lexar will offer high-performance digital music player models to suit every consumer need and budget. The units are extremely light, portable and skip-free making them ideal for joggers, and bicyclists and others on the go, as well as commuters and travelers," said Lance Ohara, director of product marketing, Lexar. "From high-end music lovers who want premium quality music reproduction to someone looking for a fun, simple and affordable way to enjoy all their favorite tunes on the go, Lexar has an option for just about everyone."

*According to CIBC World Markets

About Lexar Media, Inc.
Lexar is a leading marketer and manufacturer of flash 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 78 issued or allowed controller and system patents, and licenses its technology to companies including Olympus, Samsung Electronics, SanDisk and Sony. For more information, please call 1-800-789-9418 or visit 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 its digital music players, 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, that the growth and success of our business depends on our ability to achieve and maintain technology leadership, and 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.

• The FM Transmitter feature in the LDP-800 is not available in Europe
• Lexar and the Lexar logo are trademarks of Lexar Media, Inc. Microsoft and Windows Media are trademarks of Microsoft Corporation. All other brand or product names are trademarks or registered trademarks of their respective holders.