"The sale of our one millionth FlashPath occurred just one and one half years after our company began operations and just 15 months after SmartDisk shipped its first FlashPath," said Michael S. Battaglia, president and CEO of SmartDisk. "We are fortunate to participate in markets that are young and that are growing very rapidly - the markets for advanced digital consumer electronic appliances. We are also happy that we are providing that market with captivating and patented products. But our most important corporate assets are the partnerships that we enjoy and that have been forged with companies such as Toshiba, FujiFilm and Olympus."

The first version of FlashPath, which SmartDisk introduced in May 1998, allows the easy transfer of digital images, data and audio from SmartMedia flash memory cards to most PCs without the need for special cards, external connections and interfaces. It is used with camera models from well-known digital camera manufacturers such as FujiFilm and Olympus.

SmartDisk recently announced two new FlashPath adapters that herald the product line's compatibility with a growing number of flash memory card formats. The first is the FlashPath for Sony's Memory Stick(TM), which is to be distributed on a worldwide basis by Sony Corporation under its own brand name called Memory Stick/Floppy Disk Adaptor. The second is the FlashPath for MultiMediaCard, which SanDisk co-developed with SmartDisk. SanDisk will distribute this FlashPath globally and has placed an initial order for delivery in the first quarter of 2000.