JP Morgan Technology Conference

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1 JP Morgan Technology Conference May 24, 2006 Sanjay Mehrotra COO and Executive Vice President

2 Forward-Looking Statement During the course of this presentation, we will make forward-looking statements regarding future events and the future performance of the Company. These forward-looking statements entail various significant risks and uncertainties that could cause our actual results to differ materially from those expressed in such forward-looking statements. The words believe, anticipate, expect, estimate, intend, plan, may, will and other similar expressions generally identify forward-looking statements. In addition, any statements, that refer to expectations, outlook, projections or other characterizations of future events or circumstances are forward-looking statements. Listeners are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We refer you to the documents we file from time to time with the Securities and Exchange Commission, and our most recent Form 10-K and Form 10-Q, as well as our reports on Form 8-K. These documents contain and identify important factors that could cause results to differ materially from those contained in any forward-looking statements. We do not undertake any obligation to update any of the information contained in any forward-looking statement. 2

3 SanDisk Background Founded 1988, IPO 1995, Added to S&P 500 in Revenue $2.3B, EPS $2.00, Current Market Cap $12B Innovator: Inventor of Flash Cards Enabler of the Digital Film Revolution Projected $350M in 2006 Royalty Revenue Significant IP Portfolio Leading in Five Large Flash Memory Markets: Mobile Phone Flash cards - #1 Retail share USB Drives - #1 US Retail share Digital Audio Players - #2 US share in Flash players Digital Camera film cards - #1 Retail share Gaming - #1 Retail share 3

4 SanDisk Advantages Semiconductor Company with Strong Retail Brand Presence ~164k Storefronts - 45% share in US retail (Best Buy, Wal-Mart, Circuit City, Staples) Industry s Broadest Flash Card Offering IP Strength Fundamental Flash Memory Patents Owns Leading Card Formats (CF, SD, MS Pro, U3) Generates royalties, favorable sourcing of additional supply Flexible Low-Cost Sourcing Model MLC leadership and Fab joint ventures with Toshiba provide leading edge low-cost memory chips Silicon supply arrangements with Samsung, Toshiba and Renesas for additional capacity and profits Sells More Than 100 million Cards Annually 4

5 Our Industry: ~3x Growth in Next 3-4 Years Billions $40 $35 $30 $25 $20 $15 $10 $5 $ Semico Jan06 Gartner Feb06 Web-Feet Feb06 5

6 Key Markets Million Units CAGR Gaming w. slot or USB 62% Digital Cameras 3% USB Drives 24% Flash Audio Players 33% Phone Slots 68% Sources: Gaming - IDC Jan06 / SanDisk, Flash Audio - Gartner Feb06, DSCs - IDC Aug05/Feb06, UFDs - Gartner Feb06, Phone Slots - Strategy Analytics Feb06 6

7 Projected Annual Growth by Segment Annual Terabyte Increase Projected Annual Bit Growth by Segment Source: Gartner Feb '06, CAGR % 200% 150% 100% 50% 0% DSC + DVideo Mobile Phones Gaming USB Drives Digital Audio Other Total Note: Gaming, DSC and Digital Audio include only flash cards for those end uses, not in-system memory. Phones include both. 7

Micro II Sansa TM e200 Sansa TM c100 Memory Stick PRO Duo minisd Memory Stick PRO Duo MMCmobile SD Good Blue

8 Differentiated and Segmented Strategy Core Emerging High Growth Digital Imaging Personal Data Storage Digital Audio Mobile Phones Gaming Best Better SanDisk Extreme Family SanDisk Ultra Family Cruzer Titanium II Cruzer Micro II Sansa TM e200 Sansa TM c100 Memory Stick PRO Duo minisd Memory Stick PRO Duo MMCmobile SD Good Blue Family Cruzer Micro Skins Sansa TM m200 microsd inand Cruzer Crossfire Shoot & Store Family Cruzer Mini Sansa e100 8

9 Global Reach: Over 164,000 Storefronts Worldwide USA, USA,Mexico Mexico&& So. America So. America 62, ,000+ AAFES Best Buy Brooks/Eckerd Circuit City CompUSA Wal-Mart Costco K-Mart Musicland Office Depot Staples Sears Rite Aid Radio Shack Meijer/Food Safeway Kroger HEB MDI GameStop Sprint Verizon Canada Canada 5,000+ 5,000+ Bell World Best Buy Blacks Costco London Drugs Radio Shack Sears Shoppers Drug Mart West Fair Canada Tire T Mobile Carphone Warehouse Woolworths Dixons Orange Wal-Mart Camara Euronix FotoSistema Fotoco FNAC Foto Service Germanos Internet shops Knut Leclerc MakroMarkt PhotoStation Pulsat RIC Ringfoto Schlecker Europe Europe 60, ,000+ Asia/ Asia/ Pac PacRim Rim 23, ,000+ Best Coles Fortress Broadway Lotte Costco Sunfar GoMe SuNing DahZong Officeworks Big W Harris Tech. Good Guys H Norman Woolworths Japan Japan 14, ,000+ Aeon BIC Best Edion K s Kitamura Kojima Lawsons Matsukiyo Yamada Yodobashi 20, ,000+ Food Food&&Drug DrugStores Stores 30, ,000+ Mobile MobileStores Stores 49,000 store fronts added in a year! 9

Position Fab 3 and Fab 4: Major Drivers of

10 Fab Investments: Key to Leadership & Profitability Aggressive MLC NAND Technology Roadmap High Volume, Low- Cost, Efficient Manufacturing Strong Intellectual Property Position Fab 3 and Fab 4: Major Drivers of Cost Competitiveness, Capacity and Global Market Share Future Fab 4 10

SanDisk 3D Memory (3DM) A New Category of Non-Volatile Memory Matrix Acquisition in Jan 06 Cost Benefit: 3DR 4-layer = 1F 2 (Currently in Production) Other Cost Advantages: Logic and

11 SanDisk 3D Memory (3DM) A New Category of Non-Volatile Memory Matrix Acquisition in Jan 06 Cost Benefit: 3DR 4-layer = 1F 2 (Currently in Production) Other Cost Advantages: Logic and drivers underneath memory array Potential scalability below 45nm Focused on Creating New Applications for Portable Multimedia Pre-recorded content Consumable Blank Media 4-Layer 3D Memory Array 11

12 3DW - Read/Write Memory We believe 3DW has the potential to become a highly disruptive storage media, extending Moore s Law in the next 5-25 years 3DW Requires Technology Breakthrough to Replace OTP Layer With Multiple-Write Switching Medium Long-Term Development of 3DW Started, Successful Outcome Not Assured No 3DW Revenues Assumed Through

13 Strong Revenue Growth $2.31B $1.78B----- $623M License/ Royalty $1.08B Product Revenue Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q

14 IP Leadership: License and Royalty Revenues $ in Millions $239M $86M $174M $97M Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q

15 Growing Operating Income $ in Millions $700 $600 24% 24% 25% 28% % of Revenue $500 $577 23% $400 $300 $419 18% 13% $200 $257 8% $100 3% $ % 15

16 Revenue Base Diversifying End Markets as a % of Revenue Imaging 75% 65% 52% USB 3% 13% 12% Mobile Handset 4% 6% 13% Digital Audio - 1% 6% Gaming - - 3% Other Products 9% 5% 4% License and Royalty 9% 10% 10% Q1 Increased to 26% Total Revenue; 13M Cards 16

17 Convertible Debt Issued May 2006 Issuer SanDisk Corporation Issue Convertible Senior Notes, Registered Size $1 B, plus $150M Greenshoe Coupon 1.00% Conversion Premium 30% Call Option Spread Raised effective conversion premium to 50% via call option spread with Morgan Stanley & Goldman Sachs; cost = $77M Term 7 year, Non Call Life Ranking Senior Unsecured Use of Proceeds Manufacturing expansion, acquisitions, general corporate purposes Structure Net Share Settlement principal to be repaid with cash; in the money value with shares Accounting Treasury Stock Method 17

18 SanDisk Initiatives for Future Growth Continue Diversifying Revenue Base Accelerate Adoption of Mobile Cards in Handsets Grow MP3 Share and Develop Attractive Price Points Transform USB drives to Smart memory Grow Markets and Share in Europe and Asia Become a Consumer Branded Powerhouse Expand Fabs for Low Cost and High Returns Accelerate Innovation, Create New Markets Grow Revenues and Maintain Attractive Consistent Business Model 18

Citigroup Semiconductor Conference

Citigroup Semiconductor Conference May 31, 2006 Judy Bruner Executive Vice President and CFO Forward-Looking Statement During the course of this presentation, we will make forward-looking statements regarding