Samsung Withdraws Proposal to Acquire SanDisk

Samsung Electronics herby withdraws its proposal to acquire all the
outstanding shares of SanDisk Corporation for $26 per share in cash.

Although Samsung Electronics had made efforts to pursue an acquisition
with SanDisk Corporation for last six months, both parties have not been
able to reach an agreement.

The decision to withdraw the proposal to acquire SanDisk Corporation at
$26 per share was made in considerations of the growing uncertainties in
SanDisk’s business, its stand alone value, and the current difficult
economic environment.