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Interactive Objects recently released a Portable Audio Reference Platform based on the Cirrus Logic Maverick(TM) processor, which enables digital music to be played from a variety of hardware devices and stereo systems. CompactFlash cards will provide the removable memory expected of today's portable stereos. SanDisk also will work with Interactive Objects to maintain CF compatibility with audio devices created by manufacturers using Interactive Objects' Digital Stereo Reference Platform.

Interactive Objects' Platform is a unifying collection of all the software and hardware necessary to build embedded core Internet audio players, and includes the operating firmware (i.e. software for embedded devices) as well as the underlying hardware design necessary to build portable digital music players. This product provides interested manufacturers with a complete solution for enabling digital audio playback on various hardware devices, giving the manufacturer the technical jumpstart necessary to compete in this market. By using Interactive Objects' Platform, product manufacturers can produce portable stereos capable of playing music downloaded from the Internet (e.g. MP3) without the necessity of hiring a team of software engineers.

``Interactive Objects,'' said Ed Cuellar, SanDisk product manager, ``is providing a turnkey solution that makes it very easy for any company wanting to enter this explosive market for MP3 players.''

The typical consumer expects to be able to change music easily, and will enthusiastically embrace portable digital music players only if this expectation is met. In order to provide this functionality, Interactive Objects turned to SanDisk, the world's largest supplier of flash memory cards. Mark Phillips, Chief Technology Officer of the Information Appliances Division of Interactive Objects, said, ``The compact design and interchangeability of the CompactFlash format provides the consumer the type of swappable memory that is expected of portable music devices. By enabling CompactFlash on our platform, we've provided the solution necessary to meet the market demands placed on digital music storage.''

Creating a New Market

Kelly Wood, Director of Business Development for Interactive Objects, summarized the market this way, ``As more and more consumers begin to show interest in portable digital music players, they will demand the kind of functionality and ease of use they are accustomed to with today's analog music players. We're here to provide manufacturers the ability to produce the functionally robust portable digital stereos they will need to compete in this evolving market. With memory sizes ranging up to 128 megabytes (MB), SanDisk's current line of CompactFlash cards provide a great solution for this dilemma by providing a large storage capacity in an extremely small and portable form.''

It is possible to store more than two hours of MP3 music on a single 128MB CF memory card, providing both the storage capacity and portability consumers already enjoy on their current portable stereos.

By supporting CompactFlash, Interactive Objects adds another option to this feature-rich music platform that already boasts an impressive assortment of memory options and peripheral support. Phillips foresees that manufacturers using Interactive Objects' Platform technology to produce next-generation digital music players will help expand the market for CompactFlash cards, making them a preferred storage medium for musical storage in the next few years. ``SanDisk can expect to see the market for CF cards increase significantly in the next few years,'' predicted Phillips, ``and Interactive Objects is happy to help them accomplish this goal.''

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

Interactive Objects was founded by former Microsoft employees in 1995 to develop object software for commercial Internet and intranet applications. Information Appliances, a research and development division of Interactive Objects, specializes in providing value added functionality to embedded system devices. Today, Interactive Objects continues to evolve and expand its offerings by leveraging revenue generating intellectual property and technical talent. Interactive Objects is headquartered at 12600 SE 38th, Suite 150, Bellevue, WA 98006. Interactive Objects is listed on the OTC.BB under the symbol ``OBJX'' and on the ``Third Segment'' of the Frankfurt Stock Exchange under the symbol ``IOX'' and German securities code WKN: 913011. For more information regarding the Interactive Objects Reference Platform, visit http://www.iobjects.com

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 the company'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's website/home page address: http://www.sandisk.com

Note to Editors: CompactFlash and CF are trademarks of SanDisk Corporation. All other trade names are either registered trademarks or trademarks of their respective holders.

Contact:

     SanDisk Corp.
     Bob Goligoski, 408/542-0463
     bgoligoski@sandisk.com
          or
     Interactive Objects Inc.
     Gentry Lange, 425/653-5505
     gentryl@iobjects.com