Exhibit 99.1

CONTACT:	Investor Contact:	Media Contact:
	Lori Barker Padon	Mike Wong
	(408) 542-9565	(408) 548-0223

SANDISK ANNOUNCES RECORD REVENUES AND OPERATING INCOME

Year-over-Year Increase in Revenues of 85% and Operating Income of 136%

SUNNYVALE, CA, July 14, 2004 — SanDisk Corporation (NASDAQ:SNDK), the world’s largest supplier of flash storage card products, today announced results for the second quarter ended June 27, 2004. Second quarter total revenues increased 85% to $433 million compared to the second quarter of 2003 and increased 12% from the first quarter of 2004. Second quarter net income was $71 million, compared to $41 million and $64 million for the second quarter of 2003 and the first quarter of 2004, respectively. Earnings per share were $0.38 per diluted share compared with $0.26 per diluted share in the same quarter of 2003 and $0.34 per diluted share in the first quarter of 2004.

“Record results for our second quarter are a testimony to the success of SanDisk’s strategy and unique business model, which combines vertical integration of leading edge technology, rapid introduction of differentiated products targeted at new applications, expanding worldwide retail distribution and a strong portfolio of patents to generate significant operating margins,” said Eli Harari, President and CEO of SanDisk Corporation.

“The pricing moves that we initiated early in the second quarter stimulated consumer demand and resulted in 38% sequential quarterly growth in total megabytes and 24% sequential growth in average capacity per card sold in retail. Product gross margins improved to 35%, despite a 16% decline in average selling price per megabyte, because of a favorable mix of MLC and captive flash, and the positive impact of our product segmentation strategy; fully 25% of the retail revenue in the second quarter came from highly differentiated products. Late in the quarter we shipped first production cards employing our new 4Gbit NAND/MLC chip, and as planned we are starting to ramp 90 nanometer production in the third quarter,” added Harari.

“I am particularly encouraged by the growing acceptance of flash cards and modules in dozens of new generation cell phones sporting mega pixel cameras, music players, video clips, video games and internet access, which we expect will be one of the major catalysts for strong growth in demand for our products in the next several years,” said Harari.

Second Quarter Highlights

• Product sales were $391 million, a growth of 16% sequentially and 83% year-over-year.

• Total gross margin grew to 41% of revenues compared to 40% in the first quarter of 2004 and 38% in the second quarter of 2003.

• Product gross margin increased to 35%, compared to 32% in both the first quarter of 2004 and in the second quarter of 2003.

• Operating income was $110 million, a growth of 12% sequentially and 136% year-over-year.

• Total megabytes sold in the second quarter were a record and increased 38% sequentially and 144% year-over-year.

• Average price per megabyte sold in the second quarter declined 16% sequentially and 25% year-over-year.

• Average density per card sold in retail increased sequentially to 236MB from 189MB.

• Retail sales grew to 81% of product revenues and were particularly strong in North America and Europe.

• Storefronts grew to approximately 80,000 with the rapid acceptance of our Shoot & Store™ products into the food and drug channel and with expansion into China.

• Mobile phone products, including miniSD™, TransFlash™, RS-MMC™, and Memory Stick PRO Duo™ rolled out to retail customers in the worldwide mobile phone channel.

• SanDisk Extreme™ and SanDisk Ultra® II high performance cards took top awards in independent performance tests and were among our fastest growing product lines.

• Sales of the Cruzer® line of USB Flashdrive products continued strong growth, and productivity software is now shipping with the Cruzer Titanium.

• Judy Bruner joined SanDisk as Executive Vice President and CFO and Catherine Lego rejoined SanDisk’s Board of Directors and Audit Committee.

Conference Call and Guidance

SanDisk’s second quarter 2004 conference call with guidance is scheduled for 2:00 p.m. Pacific Time, Wednesday, July 14, 2004. Today’s teleconference prepared remarks, including third quarter guidance, will be posted to http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=sndk&script=2100. 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 (800) 314-7867 or (719) 867-0640 for international callers. The call will also be available by telephone replay through Wednesday, July 21, 2004, by dialing (888) 203-1112 or, for international callers, (719) 457-0820 and entering the pass code 229067. 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 our business outlook, expectations for new product introductions, capacity plans, future revenues, average selling prices, gross margins, operating expenses, capital equipment expenditures and tax rates 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: market demand for our products may grow more slowly than our expectations or a slower adoption rate for these products in new markets that we are targeting, fluctuations in operating results, unexpected yield variances and

longer than expected low yields and other possible delays related to our conversion to 90 nanometer NAND flash technology, any interruption of or delay in supply from any of the semiconductor manufacturing facilities that supply products to us, 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 possible excess industry capacity of flash memory either from existing suppliers or from new competitors, decreased demand, price increases from non-captive flash memory sources and third-party subcontractors, higher than expected operating expenses due to unanticipated hiring and marketing expenses, higher than anticipated capital expenditures due to unexpected outlays for test equipment and FlashVision, adverse global economic and geo-political conditions, including adverse currency exchange rates, the timely development, internal qualification and customer acceptance of new products that are based on the 90-nanometer NAND technology, fluctuations in license and royalty revenues, higher than anticipated tax rates, business interruption due to earthquakes or other natural disasters, particularly in areas in the Pacific Rim where we manufacture and assemble products, further impairment of our investments in Tower Semiconductor Ltd. due to any decline in stock valuations, 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 December 28, 2003 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 Corporation, the world’s largest supplier of flash storage card products, designs, manufactures and markets industry-standard, solid-state data, digital imaging and audio storage products using its patented, high-density flash memory and controller technology. SanDisk is based in Sunnyvale, CA.

www.sandisk.com

SanDisk, Cruzer and SanDisk Ultra are trademarks of SanDisk Corporation, registered in the United States and other countries. SanDisk Extreme, Shoot & Store and TransFlash are trademarks of SanDisk Corporation. Memory Stick PRO Duo is a trademark of Sony Corporation. RS-MMC is a trademark of the MultiMediaCard Association. SanDisk Corporation is an authorized licensee of the miniSD trademark. Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holders.

SanDisk Corporation
Condensed Consolidated Balance Sheets
(In thousands)

	June 27, 2004		March 28, 2004		December 28, 2003*
	(unaudited)		(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	613,964	$	736,361	$	734,479
Short-term investments		686,599		576,768		528,117
Investment in foundries		30,294		36,648		36,976
Accounts receivable, net		198,817		135,435		184,236
Inventories		163,487		159,710		116,896
Deferred tax asset		70,806		71,054		70,806
Other current assets		60,220		27,917		53,394
Total current assets		1,824,187		1,743,893		1,724,904
Property and equipment, net		69,327		62,062		59,470
Investment in foundries		43,985		43,955		40,446
Investment in FlashVision		145,671		145,584		144,616
Deferred tax asset		7,927		7,927		7,927
Note receivable, related party		21,895		22,164		—
Deposits and other non-current assets		36,759		37,059		46,151
Total Assets	$	2,149,751	$	2,062,644	$	2,023,514
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Current Liabilities:
Accounts payable	$	78,830	$	77,346	$	88,737
Accounts payable to related parties		51,083		51,664		45,013
Accrued payroll and related expenses		28,518		18,319		28,233
Income taxes payable		11,483		26,323		37,254
Research and development liability, related party		13,900		8,100		11,800
Other accrued liabilities		36,872		38,421		36,661
Deferred income on shipments to distributors and retailers and deferred revenue		122,353		97,992		99,136
Total current liabilities		343,039		318,165		346,834
Convertible subordinated notes payable		150,000		150,000		150,000
Deferred revenue and non-current other liabilities		24,317		24,430		25,992
Total Liabilities		517,356		492,595		522,826
Commitments and contingencies
Stockholders’ Equity:
Preferred stock		—		—		—
Common stock		1,216,831		1,213,973		1,207,958
Retained earnings		387,803		317,192		253,624
Accumulated other comprehensive income		27,761		38,884		39,106
Total stockholders’ equity		1,632,395		1,570,049		1,500,688
Total Liabilities and Stockholders’ Equity	$	2,149,751	$	2,062,644	$	2,023,514

* Information derived from the audited Consolidated Financial Statements.

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

	Three Months Ended						Six Months Ended
	June 27,			June 29,			June 27,			June 29,
	2004			2003			2004			2003
Revenues:
Product	$	391,327		$	214,044		$	730,106		$	369,492
License and royalty		41,961			20,582			90,112			39,614
Total revenue		433,288			234,626			820,218			409,106
Cost of product revenues		254,635			145,854			485,647			248,743
Gross profits		178,653			88,772			334,571			160,363
Operating expenses:
Research and development		32,468			19,349			59,230			36,927
Sales and marketing		24,942			15,525			44,603			28,167
General and administrative		10,912			7,239			21,848			13,924
Total operating expenses		68,322			42,113			125,681			79,018
Operating income		110,331			46,659			208,890			81,345
Equity in income (loss) of joint ventures		(233	)		(100	)		414			39
Interest income		4,240			1,823			8,200			4,011
Interest expense		(1,687	)		(1,687	)		(3,375	)		(3,375	)
Income (loss) in investment in foundries		22			(1,417	)		(551	)		(3,583	)
Loss in equity investment		—			—			—			(4,500	)
Other income (loss), net		(361	)		161			(317	)		(855	)
Total other income (expense)		1,981			(1,220	)		4,371			(8,263	)
Income before taxes		112,312			45,439			213,261			73,082
Provision for income taxes		41,701			4,113			79,082			6,831
Net income	$	70,611		$	41,326		$	134,179		$	66,251
Net income per share calculation:
Net income used in computing basic net income per share	$	70,611		$	41,326		$	134,179		$	66,251
Tax-effected interest and bond amortization costs related to convertible subordinated notes		1,208			1,744			2,410			3,464
Net income used in computing diluted net income per share	$	71,819		$	43,070		$	136,589		$	69,715
Shares used in computing net income per share
Basic		161,756			139,203			161,481			138,890
Diluted		188,745			164,737			189,100			162,325
Net income per share
Basic	$	0.44		$	0.30		$	0.83		$	0.48
Diluted	$	0.38		$	0.26		$	0.72		$	0.43

SanDisk Corporation
Condensed Consolidated Comparative Statements of Cash Flows
(in thousands)

	Three months ended						Six months ended
	June 27, 2004			June 29, 2003			June 27, 2004			June 29, 2003
Cash flows from Operating activities:
Net income	$	70,611		$	41,326		$	134,179		$	66,251
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		8,603			5,071			16,602			9,921
Loss (gain) on investment in foundries		(22	)		1,417			551			3,583
Loss on equity investment		0			0			0			4,500
Equity in (income) loss of joint ventures		233			100			(414	)		(39	)
Other non-cash adjustments		874			(8,625	)		2,694			(13,719	)
Changes in operating assets and liabilities:
Accounts receivable		(63,971	)		(21,942	)		(16,851	)		(21,827	)
Inventories		(3,777	)		13,578			(46,591	)		14,115
Other current and non-current assets		(31,440	)		(14,432	)		(2,593	)		(4,525	)
Investment in FlashVision		(321	)		237			(642	)		416
Note receivable, related party		269			0			(21,895	)		0
Accounts payable		1,484			21,402			(9,907	)		27,048
Accrued payroll and related expenses		10,199			7,024			285			2,548
Income taxes payable		(16,173	)		845			(27,104	)		2,704
Other current liabilities, related party		(581	)		12,217			6,070			9,131
Research and development liabilities, related parties		5,800			0			2,100			(6,007	)
Deferred revenue and other liabilities		21,212			4,163			20,266			2,284
Total adjustments		(67,611	)		21,055			(77,429	)		30,133
Net cash provided by operating activities		3,000			62,381			56,750			96,384
Cash flows from Investing activities:
Purchases of short term investments		(405,837	)		(65,615	)		(646,032	)		(161,162	)
Proceeds from sale of short term investments		293,295			58,025			485,017			115,322
Investment in foundries		0			(3,600	)		0			(3,600	)
Acquisition of capital equipment		(15,713	)		(17,146	)		0			(25,095	)
Deposit for acquisition of capital equipment		0			0			(25,155	)		0
Proceeds of sale of fixed assets		0			129			32			129
Net cash used in investing activities		(128,255	)		(28,207	)		(186,138	)		(74,406	)
Cash flows from financing activities:
Sale of common stock		2,858			4,245			8,873			6,417
Net cash provided by financing activities		2,858			4,245			8,873			6,417
Net increase (decrease) in cash and cash equivalents		(122,397	)		38,419			(120,515	)		28,395
Cash and cash equivalents at beginning of period		736,361			210,761			734,479			220,785
Cash and cash equivalents at end of period	$	613,964		$	249,180		$	613,964		$	249,180
Additional information:
Net change in cash and cash equivalents	$	(122,397	)	$	38,419		$	(120,515	)	$	28,395
Net change in short-term investments		109,831			7,399			158,482			45,452
Net change in cash, cash equivalents and short-term investments	$	(12,566	)	$	45,818		$	37,967		$	73,847