Exhibit 99.1     

SanDisk Corporation
601 McCarthy Boulevard
Milpitas, CA 95035-7932
Phone: 408-801-1000
Fax: 408-801-8657

CONTACT:	Investor Contacts:	Media Contact:
	Lori Barker Padon	Mike Wong
	(408) 801-1384	(408) 801-1240
	Jay Iyer
	(408) 801-2067

SANDISK ANNOUNCES THIRD QUARTER RESULTS

• Revenue Grows 38% Year-Over-Year Fueled by Mobile Phone Cards and International Sales

• Product Gross Margin Increased Significantly from Q2 2007

• 248% Increase in Megabytes Sold Over Q3 2006

Milpitas, CA, October 18, 2007 — SanDisk^® Corporation (NASDAQ:SNDK), the world’s largest supplier of flash storage card products, today announced results for the third quarter ended September 30, 2007. Third quarter revenue increased 38% on a year-over-year basis to $1.037 billion and net income in accordance with U.S. Generally Accepted Accounting Principles (GAAP) increased to $85 million, or $0.36 per diluted share, compared to GAAP net income of $28 million, or $0.12 per diluted share, in the second quarter of 2007. GAAP net income was $103 million, or $0.51 per diluted share, in the third quarter of 2006.

Excluding the impact of acquisition-related charges, stock compensation expense and the related tax effect, third quarter non-GAAP net income increased to $130 million, or $0.54 per diluted share, compared to second quarter 2007 non-GAAP net income of $72 million, or $0.30 per diluted share. Non-GAAP net income was $124 million, or $0.61 per diluted share in the third quarter of 2006.

“We are very pleased with our third quarter results. Demand was exceptionally strong in international retail, following our strategy to aggressively expand our business outside of North America. In the mobile phone market we sold a record 42 million units, reinforcing the enormous global opportunity which is unfolding. USB revenues also contributed

significantly to our growth in the quarter,” said Eli Harari, Chairman and CEO. “Gross margins and the pricing environment improved substantially and excellent execution at Fab 3 allowed us to respond to the surge in customer demand. We expect demand to remain strong through the fourth quarter holiday season although we may not be able to meet 100% of the demand.”

Key Metrics and Highlights

• Product revenue was $919 million in the third quarter, up 36% year-over-year and 28% sequentially.

• License and royalty revenue for the third quarter was $119 million, up 52% year-over-year and 11% sequentially.

• Total megabytes sold in the third quarter increased 248% on a year-over-year basis and 54% from the second quarter of 2007.

• Average price per megabyte sold declined 61% on a year-over-year basis and 16% sequentially.

• Average retail card capacity in the third quarter was 1616 megabytes, up 83% from the third quarter of 2006 and up 10% sequentially.

• GAAP product gross margin in the third quarter was 24.3%, compared to 32.4% in the third quarter of 2006 and up from 16.2% in the second quarter of 2007.

• Non-GAAP product gross margin for the third quarter was 26.4% compared to 32.7% in the third quarter of 2006 and up from 19.0% in the second quarter of 2007.

• GAAP operating income for the third quarter of 2007 was $109 million compared to GAAP operating income of $128 million in the third quarter of 2006 and up from $14 million in the second quarter of 2007.

• Non-GAAP operating income was $162 million, or 16% of revenue, compared to non-GAAP operating income of $158 million, or 21% of revenue in the third quarter of 2006 and up from 9% in the second quarter of 2007.

• SanDisk expanded its line of Sansa^® players with the Sansa View — a video MP3 player with a vast array of features, and the Sansa Clip — a colorful, hip, wearable value priced MP3.

• SanDisk began offering a line of Solid State Drives (SSDs) for resale to system integrators.

• SanDisk launched the SanDisk Express^™ line of high-performance products to deliver best-of-class solutions for professional videographers and photographers who demand speed, reliability and durability.

• SanDisk introduced new USB flash drives such as the Cruzer^® Micro 8 Gigabyte in worldwide markets and “extra-style” USB drives like the Cruzer Colors + in Japan and the Fleur, SNAP and TAG in Europe.

• Fab 3 reached its maximum planned production wafer output in the third quarter. Fab 4, our second 300mm wafer fabrication facility in Japan, started first production wafers using 56-nanometer process technology and is expected to aggressively grow our captive supply in 2008.

• SanDisk opened its first captive production facility in China. The plant will focus on assembly and testing of advanced Flash memory cards especially for the mobile phone market.

Scheduled Interviews

SanDisk Corporation Chairman and Chief Executive Officer, Eli Harari, is scheduled to appear on CNBC’s “Closing Bell with Maria Bartiromo,” on October 18, 2007 at approximately 1:25 p.m. PDT. Judy Bruner, SanDisk’s Executive Vice President, Administration and CFO, is scheduled to appear on Bloomberg TV’s “Starting Bell,” October 19, 2007 beginning at approximately 6:40 a.m. PDT.

Conference Call

SanDisk’s third quarter 2007 conference call is scheduled for 2:30 p.m. PDT, Thursday, October 18, 2007. The conference call will be webcast 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) 312-6695. The dial-in password is 8295174. A copy of this press release will be furnished to 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.

A complete reconciliation between GAAP and non-GAAP information referred to in this release is provided in the attached tables.

Forward-Looking Statements

This news release contains certain forward-looking statements, including statements about our business prospects and outlook, anticipated increased demand for products, including our mobile products, expected industry-wide growth, expected growth in captive supply, expected technology transitions and the timing and cost benefits thereof, our planned investments in advanced technologies, products, markets and our brand, and scheduled appearances by our Chairman and CEO and our 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 including, for example, our solid state drives, or a slower adoption rate for our products in current and new markets that we are targeting including, for example, the mobile phone market,

• 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,

• slower than expected expansion of our global sales channels,

• fluctuations in operating results, unexpected yield variances and delays related to our conversion to 56-nm NAND flash technology or the ramp-up of the 300mm flash fabrication facility,

• business interruption due to earthquakes, hurricanes or other natural disasters, particularly in areas in the Pacific Rim and Japan where we manufacture and assemble products,

• risks related to our acquisition of msystems, including that we may not realize the

	expected benefits of the acquisition due to integration challenges or that we may incur substantial costs or other damages associated with pending or future litigation related to the merger or costs or damages related to msystems’ prior stock option grant practices,
•	adverse results in litigation affecting us,
•	the risk that scheduled appearances by our executives could be cancelled or delayed by us or the network, and
•	other risks detailed from time-to-time under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission filings and reports, including, but not limited to, our Annual Report on Form 10-K for the fiscal year ended December 31, 2006 and our Forms 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 Milpitas, CA and has operations worldwide with more than half its sales outside the U.S.

www.sandisk.com

SanDisk, the SanDisk logo, Cruzer and Sansa are trademarks of SanDisk Corporation, registered in the United States and other countries. SanDisk Express is a trademark of SanDisk Corporation.

SanDisk Corporation
Preliminary Condensed Consolidated Statements of Operations
(in thousands, except per share amounts, unaudited)

	Three months ended				Nine months ended
	September 30, 2007		October 1, 2006		September 30, 2007		October 1, 2006
Revenues:
Product	$	918,810	$	673,189	$	2,328,158	$	1,847,592
License and royalty		118,613		78,196		322,383		246,238
Total revenues		1,037,423		751,385		2,650,541		2,093,830
Cost of product revenues		680,521		455,345		1,839,345		1,270,389
Amortization of acquisition-related intangible assets		14,582		—		50,227		—
Total cost of product revenues		695,103		455,345		1,889,572		1,270,389
Gross profit		342,320		296,040		760,969		823,441
Operating expenses:
Research and development		110,533		78,073		307,358		215,620
Sales and marketing		72,455		44,961		189,178		133,403
General and administrative		45,581		40,247		133,737		107,445
Restructuring		—		—		6,728		—
Write-off of acquired in-process technology		—		—		—		39,600
Amortization of acquisition-related intangible assets		4,600		4,432		20,750		12,579
Total operating expenses		233,169		167,713		657,751		508,647
Operating income		109,151		128,327		103,218		314,794
Total other income		29,200		32,223		104,015		72,700
Income before taxes		138,351		160,550		207,233		387,494
Provision for income taxes		53,713		57,269		89,475		153,457
Income after taxes		84,638		103,281		117,758		234,037
Minority interest		—		—		5,211		—
Net income	$	84,638	$	103,281	$	112,547	$	234,037
Net income per share:
Basic	$	0.37	$	0.53	$	0.49	$	1.20
Diluted	$	0.36	$	0.51	$	0.48	$	1.15
Shares used in computing net income per share:
Basic		228,689		196,317		228,034		194,974
Diluted		236,930		202,747		235,992		202,660

SanDisk Corporation
Reconciliation of GAAP to Non-GAAP Operating Results (*)
(in thousands, except per share amounts, unaudited)

	Three months ended						Nine months ended
	September 30, 2007			October 1, 2006			September 30, 2007			October 1, 2006
SUMMARY RECONCILIATION OF NET INCOME
GAAP NET INCOME	$	84,638		$	103,281		$	112,547		$	234,037
Adjustments:
Share-based compensation (a)		34,127			25,193			102,317			69,849
Amortization of acquisition-related intangible assets (c)		19,182			4,432			70,977			12,579
Inventory step-up expense related to msystems acquisition (d)		—			—			7,066			—
Write-off of acquired in-process technology (b)		—			—			—			39,600
Income tax adjustments (e)		(8,144	)		(9,292	)		(46,427	)		(24,875	)
NON-GAAP NET INCOME	$	129,803		$	123,614		$	246,480		$	331,190
GAAP COST OF PRODUCT REVENUES	$	695,103		$	455,345		$	1,889,572		$	1,270,389
Share-based compensation (a)		(4,162	)		(2,621	)		(10,683	)		(5,099	)
Amortization of acquisition-related intangible assets (c)		(14,582	)		—			(50,227	)		—
Inventory step-up expense related to msystems acquisition (d)		—			—			(7,066	)		—
NON-GAAP COST OF PRODUCT REVENUES	$	676,359		$	452,724		$	1,821,596		$	1,265,290
GAAP GROSS PROFIT	$	342,320		$	296,040		$	760,969		$	823,441
Share-based compensation (a)		4,162			2,621			10,683			5,099
Amortization of acquisition-related intangible assets (c)		14,582			—			50,227			—
Inventory step-up expense related to msystems acquisition (d)		—			—			7,066			—
NON-GAAP GROSS PROFIT	$	361,064		$	298,661		$	828,945		$	828,540
GAAP RESEARCH AND DEVELOPMENT EXPENSES	$	110,533		$	78,073		$	307,358		$	215,620
Share-based compensation (a)		(12,528	)		(10,270	)		(38,228	)		(29,477	)
NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES	$	98,005		$	67,803		$	269,130		$	186,143
GAAP SALES AND MARKETING EXPENSES	$	72,455		$	44,961		$	189,178		$	133,403
Share-based compensation (a)		(7,956	)		(4,623	)		(25,240	)		(13,786	)
NON-GAAP SALES AND MARKETING EXPENSES	$	64,499		$	40,338		$	163,938		$	119,617
GAAP GENERAL AND ADMINISTRATIVE EXPENSES	$	45,581		$	40,247		$	133,737		$	107,445
Share-based compensation (a)		(9,481	)		(7,679	)		(28,166	)		(21,487	)
NON-GAAP GENERAL AND ADMINISTRATIVE EXPENSES	$	36,100		$	32,568		$	105,571		$	85,958
GAAP TOTAL OPERATING EXPENSES	$	233,169		$	167,713		$	657,751		$	508,647
Share-based compensation (a)		(29,965	)		(22,572	)		(91,634	)		(64,750	)
Write-off of acquired in-process technology (b)		—			—			—			(39,600	)
Amortization of acquisition-related intangible assets (c)		(4,600	)		(4,432	)		(20,750	)		(12,579	)
NON-GAAP TOTAL OPERATING EXPENSES	$	198,604		$	140,709		$	545,367		$	391,718
GAAP OPERATING INCOME	$	109,151		$	128,327		$	103,218		$	314,794
Cost of product revenues adjustments (a) (c) (d)		18,744			2,621			67,976			5,099
Operating expense adjustments (a) (b) (c)		34,565			27,004			112,384			116,929
NON-GAAP OPERATING INCOME	$	162,460		$	157,952		$	283,578		$	436,822
GAAP NET INCOME	$	84,638		$	103,281		$	112,547		$	234,037
Cost of product revenues adjustments (a) (c) (d)		18,744			2,621			67,976			5,099
Operating expense adjustments (a) (b) (c)		34,565			27,004			112,384			116,929
Income tax adjustments (e)		(8,144	)		(9,292	)		(46,427	)		(24,875	)
NON-GAAP NET INCOME	$	129,803		$	123,614		$	246,480		$	331,190
Diluted net income per share:
GAAP	$	0.36		$	0.51		$	0.48		$	1.15
Non-GAAP	$	0.54		$	0.61		$	1.04		$	1.63
Shares used in computing diluted net income per share:
GAAP		236,930			202,747			235,992			202,660
Non-GAAP		238,643			203,757			237,313			203,744

SanDisk Corporation
Reconciliation of GAAP to Non-GAAP Operating Results (*)

(*)	To supplement our consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP), we use non-GAAP measures of operating results, net income and earnings per share, which are adjusted from results based on GAAP to exclude certain expenses, gains and losses. These non-GAAP financial measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors as these non-GAAP results exclude certain expenses, gains and losses that we believe are not indicative of our core operating results and because it is consistent with the financial models and estimates published by many analysts who follow the Company. For example, because the non-GAAP results exclude the expenses we recorded for share-based compensation in accordance with SFAS 123(R) effective January 2, 2006 and the acquisition of Matrix Semiconductor, Inc. in January 2006 and msystems Ltd. in November 2006, we believe the inclusion of non-GAAP financial measures provide consistency in our financial reporting. These non-GAAP results are one of the primary indicators management uses for assessing our performance, allocating resources and planning and forecasting future periods. Further, management uses non-GAAP information as certain non-cash charges such as amortization of purchased intangibles and share-based compensation that do not reflect the cash operating results of the business and certain one-time expenses such as write-off of acquired in-process technology that do not reflect the ongoing results. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. These non-GAAP measures may be different than the non-GAAP measures used by other companies.
(a)	Share-based compensation expense.
(b)	Write-off of acquired in-process technology associated with the Matrix acquisition (January 2006) and msystems acquisition (November 2006).
(c)	Amortization of acquisition-related intangible assets, primarily core and developed technology, related to the acquisition of Matrix and msystems.
(d)	Inventory step-up expense related to msystems acquisition.
(e)	Income taxes associated with certain non-GAAP adjustments.

SanDisk Corporation
Preliminary Condensed Consolidated Balance Sheets
(in thousands)

	September 30, 2007		December 31, 2006
	(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	970,920	$	1,580,700
Short-term investments		1,334,677		1,251,493
Accounts receivable from product revenues, net		438,016		611,740
Inventory		545,199		495,984
Deferred taxes		174,352		176,007
Other current assets		142,496		125,937
Total current assets		3,605,660		4,241,861
Long-term investments		923,965		457,184
Property and equipment, net		383,943		317,965
Notes receivable and investments in flash ventures		900,382		462,307
Deferred taxes		109,944		102,100
Goodwill		847,977		910,254
Intangibles, net		342,580		389,078
Other non-current assets		66,255		87,034
Total Assets	$	7,180,706	$	6,967,783
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	223,343	$	261,870
Accounts payable to related parties		163,869		139,627
Other current accrued liabilities		226,410		311,000
Deferred income on shipments to distributors and retailers and deferred revenue		204,653		183,950
Total current liabilities		818,275		896,447
Convertible long-term debt		1,225,000		1,225,000
Non-current liabilities and deferred revenue		128,004		72,226
Total liabilities		2,171,279		2,193,673
Minority interest		1,067		5,976
Stockholders’ Equity:
Common stock		3,836,109		3,657,121
Retained earnings		1,151,915		1,105,520
Accumulated other comprehensive income		20,336		5,493
Total stockholders’ equity		5,008,360		4,768,134
Total Liabilities and Stockholders’ Equity	$	7,180,706	$	6,967,783

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

	Three months ended						Nine months ended
	September 30, 2007			October 1, 2006			September 30, 2007			October 1, 2006
Cash flows from operating activities:
Net income	$	84,638		$	103,281		$	112,547		$	234,037
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Deferred and other taxes		53,715			(6,626	)		89,475			(24,021	)
Gain on equity investments		(2,134	)		(169	)		(2,701	)		(1,364	)
Depreciation and amortization		67,211			32,043			196,444			89,709
Provision for doubtful accounts		1,439			1,759			2,977			2,760
Share-based compensation expense		34,127			25,160			102,317			69,848
Excess tax benefit from share-based compensation		(4,206	)		(3,057	)		(15,714	)		(64,080	)
Write-off of acquired in-process technology		—			—			—			39,600
Other non-cash charges (income)		(266	)		7,945			2,649			3,201
Changes in operating assets and liabilities:
Accounts receivable from product revenues		(127,750	)		5,228			171,177			28,276
Inventory		57,352			(17,789	)		(47,211	)		(57,765	)
Other assets		77,177			55,851			47,001			47,108
Accounts payable trade		33,102			35,395			(38,596	)		(88,363	)
Accounts payable to related parties		11,634			15,315			22,513			28,380
Other liabilities		52,878			37,039			(139,163	)		95,837
Total adjustments		254,279			188,094			391,168			169,126
Net cash provided by operating activities		338,917			291,375			503,715			403,163
Cash flows from investing activities:
Purchases of short and long-term investments		(1,554,027	)		(632,895	)		(3,145,884	)		(1,438,195	)
Proceeds from sale and maturities of short and long-term investments		1,430,400			506,326			2,635,082			881,772
Investment in Flash Partners and Flash Alliance		(38,003	)		(4,290	)		(38,003	)		(132,209	)
Proceeds from notes receivable		1,125			—			1,125			—
Acquisition of property and equipment, net		(82,102	)		(33,721	)		(179,903	)		(123,443	)
Proceeds from notes receivable from FlashVision		—			8,524			37,512			8,524
Issuance of notes receivable to Flash Partners		(286,296	)		—			(409,601	)		(95,445	)
Purchased technology and other assets		(15,688	)		—			(28,928	)		—
Cash acquired in business combination, net of acquisition costs		—			—			—			9,432
Net cash used in investing activities		(544,591	)		(156,056	)		(1,128,600	)		(889,564	)
Cash flows from financing activities:
Proceeds from issuance of convertible senior notes, net of issuance costs		—			—			—			1,125,500
Purchase of convertible bond hedge		—			—			—			(386,090	)
Proceeds from issuance of warrants		—			—			—			308,672
Proceeds from debt financing		4,012			—			7,803			—
Proceeds from employee stock programs		43,208			17,258			97,310			86,108
Distribution to minority interest		—			—			(9,880	)		—
Excess tax benefit from share-based compensation		4,206			3,057			15,714			64,080
Share repurchase programs		—			—			(97,417	)		—
Net cash provided by financing activities		51,426			20,315			13,530			1,198,270
Effect of changes in foreign currency exchange rates on cash		955			42			1,575			228
Net increase (decrease) in cash and cash equivalents		(153,293	)		155,676			(609,780	)		712,097
Cash and cash equivalents at beginning of period		1,124,213			1,318,479			1,580,700			762,058
Cash and cash equivalents at end of period	$	970,920		$	1,474,155		$	970,920		$	1,474,155
Supplemental disclosures of cash flow information:
Issuance of stock for acquisition	$	—		$	—		$	—		$	260,908