Press Release: Lexar Responds to Lawsuit by Fuji

Sept. 19, 2005--Lexar Media, Inc. (Nasdaq:LEXR), a leading manufacturer and marketer of high-performance digital media and accessories, today responded to litigation initiated by Fuji Photo Film Co., Ltd. and Fuji Photo Film U.S.A., Inc.

Fuji filed a lawsuit against Lexar, alleging that certain of Lexar's flash cards infringe Fuji's U.S. Patent No.'s 5,303,198; 5,386,539; and 5,390,148. Fuji seeks damages and injunctive relief in this litigation, which was filed in United States District Court for the Southern District of New York on September 16, 2005.
"We believe that Fuji's litigation is a tactical move in response to the ongoing patent infringement case that Lexar brought against Fuji over three years ago, in July 2002," said Eric Whitaker, executive vice president and general counsel, Lexar. "In that case, we intend to prove that Fuji's sale of digital cameras and flash memory products infringe multiple Lexar patents. We expect discovery to be complete in that case in the next five months and anticipate a trial next year. It appears that Fuji recognizes its potential exposure in that litigation and is now trying to deflect attention from it by filing this new action. Based on our initial review of the patents asserted by Fuji, we do not believe that they apply to our flash cards, and this litigation will not deter us from protecting Lexar's intellectual property from Fuji's infringement."
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 83 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
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 the substance and timing of our current litigation as well as 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; the outcome of litigation can be unpredictable and if a third party were to prove that our flash cards infringed their patents or an injunction were ordered against our products, it could have a negative impact on our financial results and business; 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: Mon - September 19, 2005 at 08:50 AM