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Toshiba and SanDisk Inaugurate New 300mm Wafer Fab 4 for NAND Flash Memory At Yokkaichi Operations

04 September, 2007

New facility is expected to be world's largest NAND fab

The new Fab 4 at Toshiba Yokkaichi Operations
Toshiba Yokkaichi Operations
The Clean Room at Toshiba Yokkaichi Operations Fab 4
The Clean Room at Toshiba Yokkaichi Operations Fab 4

YOKKAICHI and TOKYO--Toshiba Corporation and SanDisk® Corporation today celebrated with a traditional ceremony and reception the opening of Fab 4, the latest 300mm wafer fabrication facility at Toshiba's Yokkaichi Operations, in Mie Prefecture, Japan.

Responding to continuous rising demand for NAND flash memory used in a wide range of digital applications, including digital media players, mobile phones, PCs and memory cards, Toshiba started construction of Fab 4 in August 2006.

Fab 4 is expected to start mass production in December 2007 and reach a production capacity of 80,000 wafers a month in the second half of CY2008. The fab still has space to expand capacity, and further investment could take output to 210,000 wafers per month, in response to the projected increase in future market demand. Fab 4 will employ cutting-edge 56-nanometer (nm) process technology at start-up, and plans call for a gradual transition to 43 nm technology, starting from March 2008.

"Toshiba and our partner SanDisk are delighted to celebrate the construction of this new facility," said Mr. Shozo Saito, Corporate Senior Vice President of Toshiba Corporation and President & CEO of Toshiba's Semiconductor Company. "Fab 4 will feature world-class manufacturing capabilities, both in scale and productivity. It will support us in reinforcing our leadership in the fast growing global market for higher density NAND flash memories, and provide a powerful engine of growth for both companies."

Dr. Eli Harari, Chief Executive Officer and Chairman of SanDisk Corporation, said, "Fab 4 is testimony to the success of the great partnership and long-term commitment between Toshiba and SanDisk. The enormous size and technology scope of Fab 4 reflect our confidence and optimism for the future, and we believe will enable us to competitively meet the growing demand for flash storage from our global customers in the years ahead."

Fab 4 is designed to minimize any impact on operations from natural disasters. The building was constructed using the latest earthquake-absorbing structure, which is designed to dampen temblor force by up to two-thirds, and deploys multiple power compensation (MPC) that is triggered instantaneously by any sudden, momentary loss of power supply, from a lightning strike, for example.

Toshiba funded construction of the Fab 4 building, and Flash Alliance, Ltd., a Toshiba-SanDisk venture established in July 2006, 50.1% owned by Toshiba and 49.9% by SanDisk, is funding the advanced manufacturing equipment now being installed in the fab.

The new fab will allow Toshiba and SanDisk to deploy the latest advances in process technology and multi-level cell technology and support the companies in further enhancing competitiveness and securing continued leadership in the NAND flash memory market.

Note: 1 nanometer = one billionth of a meter

Outline of Fab 4 at Yokkaichi Operations

- Structure of Building: Steel frame concrete, five stories (two clean room stories)
- Building Area: approx. 35,500m2 (approx. 382,000 in square feet)
- Floor Area: approx. 181,000m2 (approx. 1,948,000 in square feet)
- Start Construction: August 2006
- Completion of Building: July 2007
- Start Mass Production: December 2007(plan)

Outline of Yokkaichi Operations

- Location: 800 Yamanoisshiki-cho, Yokkaichi-shi, Mie Prefecture, Japan
- Established: 1992
- General Manager: Noriyoshi Tozawa
- Employees: Approx. 3,200
- Total Site Area: Approx. 312,300m2 (approx. 3,362,000 in square feet)
- Total Floor Area: Approx. 460,000m2 (approx. 4,951,000 in square feet) (including Fab 4)

Outline of Flash Alliance, Ltd.

- Location: 800 Yamanoisshiki-cho, Yokkaichi-shi, Mie Prefecture, Japan
- Established: July 2006
- Capitalization: 3 million yen
- Holding: Toshiba: 50.1%, SanDisk: 49.9%

This press release contains forward-looking statements concerning future plans, strategies and the performance of Toshiba Group. These statements are based on management's assumptions and beliefs in light of the economic, financial and other data currently available. Furthermore, they are subject to a number of risks and uncertainties. Toshiba therefore wishes to caution readers that actual results may differ materially from our expectations. Major risk factors that may have a material influence on results are indicated below, though this list is not necessarily exhaustive.

Disputes including lawsuits in Japan and other countries
Success or failure of alliances or joint ventures promoted in collaboration with other companies;
Success or failure of new businesses or R&D investment;
Changes in political and economic conditions in Japan and abroad; unexpected regulatory changes;
Major disasters, including earthquakes and typhoons;
Rapid changes in the supply/demand situation in major markets and intensified price competition;
Significant capital expenditure for production facilities and rapid changes in the market;
Changes in financial markets, including fluctuations in interest rates and exchange rates.

Forward-Looking Statements
This press release contains certain forward-looking statements, including statements about our business outlook, technological advancements, construction technology that reduces risk of damage from earthquakes or power interruptions, production schedules, geometries, expected output and effects on financial performance, costs of new fab facilitization and supply and demand 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. These risks and uncertainties are discussed in detail under the title “Risk Factors” and elsewhere in the documents we file from time to time with the SEC, including in our Annual Report on Form 10-K for our 2006 fiscal year and our Quarterly Reports on Form 10-Q.

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