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SanDisk and Sony Team for New Memory Stick

Sunnyvale, Calif. – SanDisk Corp. announced it is teaming up with Sony to develop the next generation of Sony’s Memory Stick flash memory products.

The two companies said they would develop the next generation of Memory Stick together and separately manufacture and sell the product through their various channels.

Under the agreement, which was announced yesterday, SanDisk will be able to sell Memory Stick under the SanDisk brand. SanDisk will also sell Sony its NAND Flash Memory components (NAND is flash memory used in MP3 audio players and other portable devices).

“We are very pleased that Sony has invited us to contribute our expertise and intellectual property in flash memory cards to jointly develop the next generation of Memory Stick,” said Eli Harari, SanDisk president and chief executive. “This agreement enables SanDisk to sell every major flash memory card form factor so we can truly be a one-stop shop to our retail customers,” he said.

SanDisk said it would start worldwide shipments of Memory Stick and accessories to its more than 29,000 retail outlets over the next two quarters.

Sales of NAND components to Sony are expected to begin toward the end of the year.