Exhibit 99.1

CONTACT:	Investor Contact:	Media Contact:
	Lori Barker Padon	Mike Wong
	(408) 542-0585	(408) 548-0223

SANDISK REPORTS RECORD QUARTER WITH REVENUES UP 45% AND EPS UP 90%

• EPS $0.55, up 90%; Revenues $590 million, up 45%

• Product Gross Margin 37% on strong demand, benign pricing and lower product costs

• Operating Profit of $159 million, 27% of revenue

• On track production ramps of 70 nm 8 Gigabit chip and new 300 millimeter NAND fab

• Cash increased $204 million

SUNNYVALE, CA, October 20, 2005 — SanDisk^® Corporation (NASDAQ:SNDK), the world’s largest supplier of flash storage card products, today announced results for the third quarter ended October 2, 2005. Third quarter revenues increased 45% on a year-over-year basis to a record $590 million and increased 15% compared to the second quarter of 2005. Third quarter net income was $107.5 million compared to $54.1 million in the third quarter of 2004 and $70.5 million in the second quarter of 2005. Fully diluted earnings per share was $0.55, up 90% on a year-over-year basis and up 49% compared to the second quarter of 2005.

“We are very pleased with the outstanding results for our third quarter. Demand was strong throughout the quarter in our served markets. We are particularly encouraged by the excellent adoption of our cards in music-enabled mobile phones that require high capacity cards,” said Eli Harari, SanDisk CEO. “Demand for NAND flash continues to grow globally and is currently outstripping industry-wide supply, particularly for high density NAND. Towards the end of the quarter we began first shipments of cards employing our cost effective 70-nanometer 8 gigabit NAND/MLC chip. Together with Toshiba we are accelerating the production ramp at Flash Partners’ 300 millimeter fab to meet the anticipated strong demand for NAND flash in the fourth quarter and in 2006. We are optimistic about our business in the traditionally strong fourth quarter.”

Financial Highlights

• Product revenue was a record $530 million in the third quarter, up 45% year-over-year and 17% sequentially.

• Revenue from license and royalties was $60 million, up 40% year-over-year and down 2% sequentially.

• Megabytes sold in the third quarter were a record and increased 213% year-over-year and 23% from the second quarter of 2005.

• Average density per card sold in retail was 514 megabytes, doubling from the third quarter of 2004 and up 4% sequentially.

• Average price per megabyte sold declined 5% sequentially and 54% from the third quarter of 2004.

• Total gross margin was 44% of revenues compared to 36% in the third quarter of 2004 and 42% in the second quarter of 2005.

• Product gross margin was 37% compared to 29% in the third quarter of 2004 and 34% in the second quarter of 2005.

• Operating income was a record $159 million and 27% of revenue compared to $84 million and 21% of revenue in the third quarter of 2004 and $106 million and 21% of revenue in the second quarter of 2005.

• Net income was $107 million compared to $54 million in the third quarter of 2004 and $70 million in the second quarter of 2005.

• Cash flow from operations was $209 million compared to $131 million in the third quarter of 2004 and total cash and short-term investments increased $204 million in the third quarter to $1.66 billion.

Product Introductions

• SanDisk introduced its third generation card technology, TrustedFlash^™. These cards provide security and digital rights management for content providers and enable consumers to move valuable stored content among multiple devices.

• SanDisk introduced iNAND^™ embeddable components. Compared to mobile device micro hard drives, iNAND is smaller, requires less power consumption and is more durable.

• SanDisk Extreme^™ III and SanDisk Ultra II^® took top awards in independent performance tests and were among our fastest growing products.

• SanDisk introduced the m200 MP3 players in capacities ranging from 512 megabyte to 4 gigabyte and the new players support various music subscription services.

• SanDisk launched Cruzer^® Freedom, a new USB flash drive that lets students carry secure internet downloads of textbooks and other copyrighted content.

Recent Events

• In early October Dr. Randhir Thakur joined SanDisk as Executive Vice President of Technology and Worldwide Operations.

• On October 20th SanDisk signed a definitive agreement for the acquisition of Matrix^®. Matrix Semiconductor, Inc. is a privately held semiconductor company specializing in 3-D one-time programmable/archiving memory — see separate press announcement and third quarter conference call for further details.

Scheduled Interviews
SanDisk Corporation President and Chief Executive Officer, Eli Harari, is scheduled to appear on CNBC’s “Closing Bell with Maria Bartiromo”, October 20, 2005 at approximately 1:15 p.m. PDT. Judy Bruner, SanDisk’s Executive Vice President, Administration and CFO is scheduled to appear on Bloomberg TV’s “Morning Call”, October 21, 2005 at approximately 4:40 a.m. PDT.

Conference Call
SanDisk’s third quarter 2005 conference call is scheduled for 2:00 p.m. PDT, Thursday, October 20, 2005. The conference call will be web cast by CCBN and can be accessed live, and throughout the quarter, at SanDisk’s website at www.sandisk.com/IR and at www.streetevents.com for registered streetevents.com users. To participate in the call via telephone, the dial in number is (913) 312-1293. The call will also be available by telephone replay through Monday, October 24, 2005, by dialing (719) 457-0820 and entering the pass code 7280104. A copy of this press release will be filed with the Securities and Exchange Commission on a current report on Form 8-K and will be posted to our website prior to the conference call.

Forward-Looking Statements
This news release contains certain forward-looking statements, including statements about our business outlook in the fourth quarter of 2005 and 2006, production schedules, market growth rates, market supply and demand, and scheduled appearances by our CEO and CFO that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate and may significantly and adversely affect our business, financial condition and results of operations. Risks that may cause these forward-looking statements to be inaccurate include among others: slower than expected growth in market demand for our products or a slower adoption rate for these products in current and new markets that we are targeting, any interruption of or delay in supply from any of the semiconductor manufacturing or subcontracting facilities, including test and assembly facilities that supply products to us, the fact that no security technology can be guaranteed to be 100% secure, slower than expected expansion of our global sales channels, fluctuations in operating results, unexpected yield variances and longer than expected low yields and other possible delays related to our conversion to 70-nanometer NAND flash technology or the ramp-up of the new 300-millimeter flash fabrication facility, unexpected delays in the ramp-up of volume production of our new 70-nanometer 8 gigabit NAND/MLC chip, our inability to make additional planned smaller geometry conversions in a timely manner, future average selling price erosion that may be more severe than our expectations due to decreased demand or possible excess industry capacity of flash memory from ourselves as well as from existing suppliers or from new competitors that are planning to aggressively increase supply in the fourth quarter of 2005 or 2006, price increases from non-captive flash memory sources and third-party subcontractors, higher than expected operating expenses, higher than anticipated capital equipment expenditures, adverse global economic and geo-political conditions, including adverse currency exchange rates and acts of terror, the timely development, internal qualification and customer acceptance of new products that are based on 70-nanometer NAND technology, fluctuations in license and royalty revenues, business interruption due to earthquakes, hurricanes, pandemics or other natural disasters, particularly in areas in the Pacific Rim and Japan where we manufacture and assemble products, potential impact of high energy prices and other global events outside of our control which could adversely impact consumer confidence and hence reduce demand for our products, scheduled appearances by our executives could be cancelled or delayed by us or the network, and the other risks detailed from time-to-time in our Securities and Exchange Commission filings and reports, including, but not limited to, the Form 10-K for the year ended January 2, 2005 and our quarterly reports on Form 10-Q. Future results may differ materially from those previously

reported. We do not intend to update the information contained in this release.

About SanDisk
SanDisk is the original inventor of flash storage cards and is the world’s largest supplier of flash data storage card products using its patented, high-density flash memory and controller technology. SanDisk is headquartered in Sunnyvale, CA and has operations worldwide, with more than half its sales outside the U.S.

www.sandisk.com

SanDisk and SanDisk Ultra, are trademarks of SanDisk Corporation, registered in the United States and other countries. Trusted Flash, Cruzer, SanDisk Extreme and iNAND are trademarks of SanDisk Corporation. Matrix is a registered trademark of Matrix Semiconductor, Inc.

SanDisk Corporation
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)

	Three Months Ended				Year to Date Ended
	October 2,		September 26,		October 2,		September 26,
	2005		2004		2005		2004
Revenues:
Product	$	529,735	$	365,033	$	1,383,176	$	1,095,139
License and royalty		59,896		42,921		172,326		133,033
Total revenue		589,631		407,954		1,555,502		1,228,172
Cost of product revenues		332,847		260,573		884,832		746,220
Gross profits		256,784		147,381		670,670		481,952
Operating expenses:
Research and development		43,420		30,184		150,771		89,414
Sales and marketing		31,610		20,863		83,241		65,466
General and administrative		23,186		12,651		58,527		34,499
Total operating expenses		98,216		63,698		292,539		189,379
Operating income		158,568		83,683		378,131		292,573
Total other income (expense)		11,999		1,914		22,614		6,285
Income before taxes		170,567		85,597		400,745		298,858
Provision for income taxes		63,109		31,495		148,275		110,577
Net income	$	107,458	$	54,102	$	252,470	$	188,281
Net income per share calculation:
Net income used in computing basic net income per share	$	107,458	$	54,102	$	252,470	$	188,281
Tax-effected interest and bond amortization costs related to convertible subordinated notes		0		1,202		0		3,612
Net income used in computing diluted net income per share	$	107,458	$	55,304	$	252,470	$	191,893
Shares used in computing net income per share
Basic		183,047		162,425		181,716		161,796
Diluted		194,212		188,562		191,489		188,903
Net income per share
Basic	$	0.59	$	0.33	$	1.39	$	1.16
Diluted	$	0.55	$	0.29	$	1.32	$	1.02

SanDisk Corporation
Condensed Consolidated Balance Sheets
(In thousands)

	October 2, 2005			July 3, 2005			January 2, 2005*
	(unaudited)			(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	764,612		$	581,089		$	463,795
Short-term investments		890,938			870,531			859,175
Investment in foundries		19,410			19,569			20,398
Accounts receivable, net		211,219			242,498			194,535
Inventories		286,878			229,593			196,422
Deferred tax asset		77,250			91,744			83,150
Other current assets		37,022			80,439			62,653
Total current assets		2,287,329			2,115,463			1,880,128
Property and equipment, net		179,822			177,341			147,231
Investment in foundries		8,611			7,900			14,377
Investment in FlashVision		166,041			168,349			178,681
Investment in FlashPartners		21,461			21,927			24,192
Deferred tax asset		16,275			9,265			1,861
Notes receivable, Flash Vision		64,442			53,277			35,413
Other non-current assets		35,543			33,139			38,297
Total Assets	$	2,779,524		$	2,586,661		$	2,320,180
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Current Liabilities:
Accounts payable	$	146,317		$	113,105		$	82,974
Accounts payable to related parties		71,160			63,311			48,115
Accrued payroll and related expenses		46,230			32,390			41,785
Income taxes payable		17,382			28,406			39,139
Research and development liability, related party		5,000			6,300			5,549
Other current accrued liabilities		44,336			41,356			45,584
Deferred income on shipments to distributors and retailers and deferred revenue		170,634			176,532			90,307
Total current liabilities		501,059			461,400			353,453
Deferred revenue and non-current liabilities		19,662			22,232			26,577
Total Liabilities		520,721			483,632			380,030
Commitments and contingencies
Stockholders’ Equity:
Common stock		1,484,927			1,431,640			1,406,553
Retained earnings		772,710			665,252			520,240
Accumulated other comprehensive income		8,921			11,056			18,893
Deferred compensation		(7,755	)		(4,919	)		(5,536	)
Total stockholders’ equity		2,258,803			2,103,029			1,940,150
Total Liabilities and Stockholders’ Equity	$	2,779,524		$	2,586,661		$	2,320,180

*Information derived from the audited Consolidated Financial Statements.

SanDisk Corporation
Condensed Consolidated Comparative Statement of Cash Flows
September 2005
(in thousands, unaudited)

	Three months ended						Nine months ended
	October 2, 2005			September 26, 2004			October 2, 2005			September 26, 2004
Cash flows from operating activities:
Net income	$	107,458		$	54,102		$	252,470		$	188,281
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred taxes		(182	)		7,065			(194	)		7,582
Loss (gain) investment in foundries		(501	)		399			8,752			950
Depreciation and amortization		17,518			9,808			46,906			26,410
Provision for doubtful accounts		52			572			(111	)		2,842
FlashVision wafer cost adjustment		6,228			(321	)		4,056			(962	)
Other non-cash charges		1,463			1,970			7,003			2,931
Changes in operating assets and liabilities:
Accounts receivable		31,227			62,089			(16,573	)		45,238
Inventories		(57,285	)		(17,842	)		(90,456	)		(64,433	)
Other current assets		46,339			33,538			34,164			31,431
Other non-current assets		1,639			(2,635	)		(1,427	)		1,724
Accounts payable		31,211			35,119			61,342			25,212
Accrued payroll and related expenses		13,840			1,508			4,445			1,793
Income taxes receivable/payable		14,205			(27,434	)		1,387			(55,580	)
Accounts payable, related party		408			155			16,355			8,325
Other current accrued liabilities		2,981			376			(1,240	)		587
Deferred income on shipments and deferred revenue		(7,503	)		(27,667	)		75,514			(7,901	)
Other non-current liabilities		(591	)		124			(409	)		900
Total adjustments		101,049			76,824			149,514			27,049
Net cash provided by operating activities		208,507			130,926			401,984			215,330
Cash flows from investing activities:
Purchases of short term investments		(195,700	)		(278,244	)		(491,282	)		(922,651	)
Proceeds from sale of short term investments		174,150			216,327			455,758			698,397
Investment in Flash Vision		0			(70	)		0			(70	)
Acquisition of capital equipment, net		(23,779	)		(78,121	)		(80,500	)		(107,939	)
Notes receivable from FlashVision		(12,027	)		(11,927	)		(34,249	)		(33,564	)
Net cash used in investing activities		(57,356	)		(152,035	)		(150,273	)		(365,827	)
Cash from Financing activities
Employee stock programs		32,390			9,327			48,243			18,200
Net cash provided by financing activities		32,390			9,327			48,243			18,200
Effect of changes in foreign currency exchange rates on cash		(18	)		0			863			0
Net increase (decrease) in cash and cash equivalents		183,523			(11,782	)		300,817			(132,297	)
Cash and cash equivalents at beginning of period		581,089			613,964			463,795			734,479
Cash and cash equivalents at end of period	$	764,612		$	602,182		$	764,612		$	602,182