SSD Academy SSD Adoption in Laptops Doreet Oren Director Product Marketing, SSD

Outline

Why all the SSD buzz? NAND flash demand by application (2007 - 2012) Percent of total demand Others SSD (solid state drive) MP3 players (flash-based) USB flash drives Mobile handsets (embedded flash) Removable flash storage cards Source - isupply, March 2008 2007 2008 2009 2010 2011 2012

Why all the SSD buzz? NAND flash demand by application (2007 - 2012) 40% Percent of total demand Others SSD (solid state drive) USB flash drives Mobile handsets (embedded flash) Source - isupply, March 2008 2007 2008 2009 2010 2011 2012 MP3 players (flash-based) Removable flash storage cards

Why all the SSD buzz? SSD is estimated to be a multi-billion dollar market Revenue (B$) 1 2 3 4 5 6 7 8 Source - Gartner, Dataquest Insight: Solid-State Drives Emerge in Select Consumer and Enterprise Markets, 2008; IDC, Worldwide Solid State Drive 2007-2011 Forecast and Analysis, 2007; iSupply, Data Flash Market Slides With the Global Economy, 2008; Korea Investment & Securities Co., Ltd., SSD: new killer application of NAND, 2008

Why all the SSD buzz? Revenue (B$) $2.6B $4.3B $6.0B 1 2 3 4 5 6 7 8 SSD is estimated to be a multi-billion dollar market Source - Gartner, Dataquest Insight: Solid-State Drives Emerge in Select Consumer and Enterprise Markets, 2008; IDC, Worldwide Solid State Drive 2007-2011 Forecast and Analysis, 2007; iSupply, Data Flash Market Slides With the Global Economy, 2008; Korea Investment & Securities Co., Ltd., SSD: new killer application of NAND, 2008

Innovator Geek

Early Adopters Executive Road Warrior

Early Majority Light Traveler Mr. Mobility

Late Majority Student

Laggards Average user

SSD Adoption in 2009 SSD excellent fit SSD good fit SSD late adopter Source - Based on internal SanDisk research 2008

SSD Adoption in 2011 SSD excellent fit SSD good fit SSD late adopter Source - Based on internal SanDisk research 2008

Technology Lifecycle - SSD Adoption in Laptop Early Adopters Late Majority The chasm Early Majority Laggards Average user Student Geek Innovators Time Light Traveler Mr. Mobility Executive Road Warrior Source - Based on internal SanDisk research 2008

SSD Adoption in Mainstream Computing HDD Floor Price SSD Premium 0 – 200% Value driven Conversion SSD Premium Above 200% Early adopter region 128GB MLC SSD 256GB MLC SSD 64GB MLC SSD 32GB Modular MLC SSD $ SSD Below HDD Floor Full Conversion 2008 2009 2010 2011 16GB Modular MLC SSD Source - Based on internal SanDisk research 2008

SSD Adoption in Laptops by Price Band Gartner, Inc. “Forecast: PCs, Worldwide and North America” by George Shiffler, Raphael Vasquez and Mikako Kitagawa, July 1, 2008 Gartner, Inc. "Semiconductor Forecast Worldwide: Forecast Database" by Nolan Reilly, Joseph Unsworth et al, May 29, 2008 SSD at 10% of Notebook ASP. Units (K) 2009 2010 2011 2008 2008 SSD Penetration

Explosive Commercial SSD Market Total SSD Market Millions $ Enterprise Notebook & Desktop Client ULCPC Source: IDC, Garter and Sandisk internal estimates 117% CAGR over the next 5 years 2007 2008 2009 2010 2011 2012

Summary

Visit the SSD Academy for more information www.sandisk.com/ssd © SanDisk Corporation ABOUT SANDISK SanDisk Corporation, the inventor and world’s largest supplier of flash storage cards, is a global leader in flash memory – from research, manufacturing and product design to consumer branding and retail distribution.  SanDisk’s product portfolio includes flash memory cards for mobile phones, digital cameras and camcorders, digital audio/video players, USB flash drives for consumers and the enterprise, embedded memory for mobile devices, and solid state drives for computers.  SanDisk is a Silicon Valley-based S&P 500 company, with more than half its sales outside the United States.