Press Release: Lexar Announces Dismissal of Securities Litigation


Sept. 6, 2005--Lexar Media, Inc. (Nasdaq:LEXR), a world leader in advanced digital media technologies, today announced that both federal and state securities litigation that had been pending against Lexar have now been dismissed.

In May 2004, plaintiffs brought an action in the United States District Court for the Northern District of California allegedly on behalf of a class of plaintiffs who purchased Lexar common stock and asserted claims under Section 10(b) and 20(a) of the Exchange Act, as well as Rule 10b-5 based principally on allegations that executives misrepresented Lexar's business. This action was dismissed without prejudice and plaintiffs determined that they would not file an amended complaint.
In June 2004, two derivative lawsuits based on allegations substantially similar to those in the federal class actions were filed in the Superior Court of the State of California, Alameda County, in which Lexar was a nominal defendant and certain of its officers and directors were defendants. The Court dismissed this action without leave to amend and plaintiffs have decided not to pursue an appeal of this action.
"We are extremely pleased with these results," said Eric Whitaker, executive vice president and general counsel, Lexar. "We maintained throughout the litigation that these lawsuits should not be permitted to proceed, and are gratified that we are now able to put them behind us."
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 87 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 news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the safe harbor created by those sections. These forward-looking statements include assertions regarding our continuing efforts to protect our intellectual property rights. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements. These risks include, among others, that we are currently involved in litigation, and could be involved in additional litigation in the future, which could have a negative impact on our business, operating results, financial position and liquidity; our operating results and gross margins have fluctuated in the past, may fluctuate significantly in the future and are difficult to predict and if our future results are below the financial guidance provided by us or the expectations of investors or securities analysts, the market price of our common stock could decline significantly. Readers should also refer to the risk factors described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 31, 2005, and our most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 9, 2005. We assume no obligation to update the forward-looking information contained in this news release.
Lexar 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.

Posted: Tue - September 6, 2005 at 09:23 AM          

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