1000180--2/28/2007--SANDISK

related topics

{property, intellectual, protect}

{customer, product, revenue}

{debt, indebtedness, cash}

{product, market, service}

{operation, international, foreign}

{acquisition, growth, future}

{personnel, key, retain}

{product, liability, claim}

{stock, price, operating}

{regulation, government, change}

{control, financial, internal}

{condition, economic, financial}

{stock, price, share}

Our average selling prices, net of promotions, may decline faster than cost reductions due to industry or SanDisk excess supply, competitive pricing pressures or strategic price reductions initiated by us or our competitors. We face competition from numerous manufacturers and marketers of products using flash memory, as well as from manufacturers of new and alternative technologies, and if we cannot compete effectively, our results of operations and financial condition will suffer The semiconductor industry is subject to significant downturns that have harmed our business, financial condition and results of operations in the past and may do so in the future If actual manufacturing yields are lower than our expectations, this may result in increased costs and product shortages Our products may contain errors or defects, which could result in the rejection of our products, product recalls, damage to our reputation, lost revenues, diverted development resources and increased service costs and warranty claims and litigation. We have a contingent indemnification obligation and guarantee obligations related to the ventures with Toshiba. We are sole-sourced for a number of our critical components and the absence of a back-up supplier exposes our supply chain to unanticipated disruptions. We may be unable to license intellectual property to or from third-parties as needed, or renew existing licenses, which could expose us to liability for damages reduce our royalty revenues, increase our costs or limit or prohibit us from selling products. Because of our international business and operations, we must comply with numerous international laws and regulations, and we are vulnerable to political instability, currency fluctuations and other risks related to international operations. Our stock price has been, and may continue to be, volatile, which could result in investors losing all or part of their investments Our success depends on key personnel, including our executive officers, the loss of whom could disrupt our business Changes in securities laws and regulations have increased our costs; further, in the event we are unable to satisfy regulatory requirements relating to internal control, or if our internal control over financial reporting is not effective, our business could suffer The net share settlement feature of the 1% Notes due 2013 may have adverse consequences. Although we expect that the merger will result in benefits to us, those benefits may not occur because of integration and other challenges, and failure to realize the benefits of the merger may result in the dilution of our per share operating results Third-parties may terminate, alter or litigate under existing contracts or relationships with the combined company.

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1000180--2/28/2007--SANDISK_CORP