LEXR Lexar Media (MM)

Lexar Media, Inc. (NASDAQ:LEXR), a world leader in advanced digital media technologies, today announced the introduction of its first enterprise-class USB Personal Storage Device, the SAFE PSD S1100 with a multi-layered security architecture. Two major components of the S1100's security architecture are Lexar's PSD-Lock technology, an embedded device access control technology that enables USB device locking, and onboard 256-bit "on-the-fly" AES hardware encryption. The S1100 Personal Storage Device (PSD) is developed for enterprises and government agencies that want their employees to be able to store and access data on PSDs, but also want to make sure that data is kept secure and private in case of device loss or theft. Joseph Unsworth, Principal Analyst at Gartner, commented on the importance of the Lexar product introduction, noting: "Traditional USB flash drives, portable devices, and other removable media can leave enterprises vulnerable to malicious software, viruses and data theft, a situation that has resulted in many companies resisting the category altogether. In fact, out of the more than 51.7 million USB flash drives that shipped in 2004, 68 percent of them were purchased through the consumer channel(1). Corporations, government agencies and other enterprises have a clear desire for secure USB flash drives that include authentication, encryption, and enterprise manageability features." Lexar's SAFE PSD S1100 seamlessly integrates with Microsoft Windows, providing a simple user experience. Lexar's PSD-Lock technology requires end-users to enter a preset passphrase to "unlock" the device in order to access data. Onboard 256-bit AES encryption automatically encrypts device contents, including the passphrase, encryption keys, device firmware and user data. Each S1100 also supports a unique serial number as defined by the USB Implementers Forum (USB-IF) that can be used for asset management purposes within an enterprise. In addition, Lexar's SAFE PSD S1100 is designed to work with SecureWave's Sanctuary Device Control (sold separately), a centrally managed device access control and policy enforcement solution. Lexar has recently partnered with SecureWave to meet the demands of today's enterprises for comprehensive end-to-end management of personal storage devices, including the SAFE PSD S1100. Lexar's SAFE PSD S1100, in conjunction with SecureWave's Sanctuary Device Control, will enable enterprises to set policies that discover, monitor, control and audit all device usage. Sanctuary policies, in conjunction with the S1100's onboard AES encryption features, will enable organizations to significantly reduce the risk associated with the use of removable mass storage devices within the enterprise. "Our vision was to create a PSD that would meet enterprise requirements in the areas of security, device manageability and access control," said Farshid Tabrizi, GM of Enterprise and OEM Products at Lexar. "We understand that by providing enterprises with PSDs designed with embedded device access control and hardware encryption based on industry standards, we not only address concerns about data loss or theft but we also aid enterprises with regulatory compliance issues regarding SOX and GLBA, in addition to satisfying an enterprise's need to centrally manage PSDs." Lexar SAFE PSD S1100 solutions will be available at the end of Q2 in capacities up to 2GB. For more information please visit www.lexar.com/enterprise. (1) "Market Share: Removable Solid-State Storage Devices, Worldwide, 2004 - July 2005" About Lexar Media, Inc. Lexar is a leading marketer and manufacturer of NAND flash memory products including 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 98 issued or allowed controller and system patents, and licenses its technology to companies including Olympus Corporation, Samsung Electronics Co., Ltd., SanDisk Corporation and Sony Corporation. Lexar sells its memory cards worldwide and through an exclusive agreement, also sells memory cards under the Kodak brand. Headquartered in Fremont, California, Lexar has operations in countries around the world. Cautionary Note Regarding Forward-Looking Statements This release contains forward-looking statements, which are subject to the safe harbor provisions of the Private Litigation Reform Act of 1995. These statements include statements related to the USB flash drive market, the benefits and availability of, and consumer demand for, Lexar's products, including the SAFE PSD S1100, and the growth opportunities available to Lexar. These forward-looking statements involve risks and uncertainties that could cause Lexar's actual results to differ materially from those anticipated by these forward-looking statements. These risks include the possibility that the market for the SAFE PSD S1100 may not develop as expected or that development of this product may not proceed as planned; that the growth and success of Lexar's business depends on its ability to achieve and maintain technology leadership, and develop, sell and market products that are commercially accepted; and that security technology by its nature is capable of circumvention such that Lexar cannot guarantee data will be 100% secure from unauthorized access, alteration or destruction. Readers should also refer to the risk factors described in Lexar's filings with the SEC, including its most recently filed Form 10-K and Form 10-Q. Lexar assumes no obligation to update the information in this 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.