Lexar Updates Preliminary Fourth Quarter Results

Lexar Media, Inc. (Nasdaq:LEXR) today updated
preliminary results for the fourth quarter ended December 31, 2005
and has rescheduled its earnings release and related conference call
in order to facilitate the completion of the Company's accounting
analysis of inventory and other reserves.
   The Company now expects to report fourth quarter net revenues in
the range of approximately $237 to $240 million and a net loss in the
range of $20 to $23 million or $0.25 to $0.28 per share.
   The Company will report its results after the market close on
March 14, 2006 and will host a conference call at 2:00 p.m. PST (5:00
p.m. EST). To participate on the live call, analysts and investors
should dial 800-218-0713 at least ten minutes prior to the call. The
call will also be webcast and can be accessed from the investor
relations section of the Company's web site at www.lexar.com. A
telephonic replay will also be available until 11:59 p.m. PT on
Thursday, March 16, 2006 by dialing 800-405-2236 and entering the
passcode: 11050719#.

   About Lexar Media, Inc.

   Lexar is a leading marketer and manufacturer of NAND flash memory
products including memory cards, USB flash drives, card readers and
ATA controller technology for the digital photography, consumer
electronics, industrial and communications markets. The company holds
over 94 issued or allowed controller and system patents, and licenses
its technology to companies including Olympus Corporation, Samsung
Electronics Co., Ltd., SanDisk Corporation and Sony Corporation. Lexar
sells its memory cards worldwide and through an exclusive agreement,
also sells memory cards under the Kodak(R) brand. Headquartered in
Fremont, California, Lexar has operations in countries around the
world. More information is available at www.lexar.com.

   Cautionary Note Regarding Forward-Looking Statements

   This news release contains forward-looking information within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934 and is subject to the safe
harbor created by those sections. These forward-looking statements
include, among others, statements related to our anticipated financial
results for the fourth quarter ended December 31, 2005. These
forward-looking statements involve a number of risks and uncertainties
that could cause actual results to differ materially from those
anticipated by these forward-looking statements. These risks include:
that the determination of our anticipated financial results for the
fourth quarter, including the impact of various factors on our net
loss and gross margins, is based on preliminary information, which is
subject to change; our operating results, including our gross margins,
are difficult to predict and may fluctuate significantly; if we are
unable to effectively manage our inventory, our operating results will
be negatively impacted; the cost of flash memory is a significant part
of our products' cost structure, and if we are unable to obtain
sufficient quantities of flash memory in a timely manner and at
competitive prices, we may not be able to manufacture and deliver
products to satisfy our customers' requirements, compete effectively
in the market or maintain our targeted gross margins or market share;
future average selling prices may continue to erode due to excess
industry capacity and extreme price competition which may impact our
gross margins and our ability to maintain our position at our retail
accounts; many of our retail customers and distributors have price
protection which could require us to make large payments if we reduce
prices; if we are unable to anticipate demand and pricing of our
products or if we are unable to effectively manage distributor
channels and relationships and changes in market conditions, our
operating results will be harmed; our licensing revenues may fluctuate
significantly and we may be unable to secure new license or royalty
revenue; increased competition in the digital media market may lead to
a decrease in our revenues and market share; if we are unable to
achieve or maintain our technology leadership position or to obtain
rights to develop and manufacture new form factors on acceptable
terms, our gross margins and revenues would likely decline
significantly; and we are involved in litigation, and may become
involved in additional litigation, the outlook of which is highly
uncertain, that could divert management's time and attention, be
time-consuming and expensive to defend or limit our access to
important technology. Readers should also refer to the risk factors
described in our filings with the Securities and Exchange Commission,
including our Quarterly Report on Form 10-Q for our fiscal quarter
ended September 30, 2005, filed with the Securities and Exchange
Commission on November 9, 2005. We assume no obligation to update the
forward-looking information contained in this news release.

   Lexar and the Lexar logo are trademarks of Lexar Media, Inc. All
other brand or product names are trademarks or registered trademarks
of their respective holders.