Exhibit 99.1

      SANDISK ANNOUNCES LICENSING, MANUFACTURING AND SELLING AGREEMENT WITH

                         OLYMPUS FOR THE XD-PICTURE CARD

           SANDISK TO MAKE OLYMPUS BRANDED XD-PICTURE CARD FOR OLYMPUS

          AND FOR RESALE THROUGH SANDISK'S RETAIL DISTRIBUTION CHANNEL

      SUNNYVALE, CA, MAY 27, 2003 - SanDisk Corporation (NASDAQ:SNDK) today
announced that it has signed a five-year agreement with Olympus Optical Co.,
Ltd. covering the xD-Picture Card(TM) format. Under the agreement, Olympus will
be licensed to SanDisk's patents relating to xD flash cards and host devices.
SanDisk will be licensed to manufacture xD-Picture Cards for Olympus as well as
sell xD-Picture Cards under the Olympus brand through SanDisk's global retail
distribution channels. SanDisk will begin shipments of xD-Picture Cards in
selected regions beginning in June 2003, with worldwide availability in the
third quarter, 2003.

      The xD-Picture Card is a flash memory card format developed and owned by
Olympus, FujiFilm and Toshiba. It was introduced in the fourth quarter of 2002
and has gained popularity in many of the of new digital camera models that are
sold by Olympus and FujiFilm. The xD-Picture Card is targeted primarily at
"digital film" applications and offers high storage capacities for high
mega-pixel photos as well as high performance needed to store the video clips
that are becoming increasingly more popular in digital cameras. SanDisk
initially will sell the xD-Picture Card in capacities ranging from 64 to 256
megabytes. The xD-Picture Card can support up to a maximum future capacity of 8
gigabytes.

      Eli Harari, SanDisk's President and CEO, said, "We are very pleased with
this agreement with Olympus, one of the leading manufacturers of digital cameras
in the world. This agreement allows us to support Olympus as an important new
OEM customer, as well as Olympus' customers in the retail after-market. This is
consistent with SanDisk's retail strategy to be a one-stop-shop card supplier
for consumers, regardless of which flash card format they use in their digital
cameras and other portable digital appliances. Through this xD-Picture Card
agreement with Olympus, SanDisk plans to make and sell worldwide all the major
flash card formats."

      SanDisk, the world's largest supplier of flash data 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.

      The matters discussed in this news release contain forward looking
statements that are subject to certain risks and uncertainties as described
under the caption, "Factors That May Affect Future Results" in SanDisk's annual
report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities
and Exchange Commission. The company assumes no obligation to update the
information in this release. SanDisk cannot guarantee that it will succeed to
manufacture competitively the xD-Picture Card or that its sales of xD-Picture
Card either to Olympus or through its own sales channels will contribute
materially to SanDisk's revenues or profits.

SanDisk's web site/home page address: http://www.sandisk.com
All trade names are either registered trademarks or trademarks of their
respective holders.

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