SanDisk announced the completion of its acquisition of msystems in an all stock transaction valued at approximately $1.5 billion.

“Today marks the exciting beginning of the new SanDisk as we commence operations with msystems as an integrated team under one company,” said Eli Harari, SanDisk Chairman and CEO. “With our great energy and passion and complementary strengths, we expect this industry leading innovative team to transform our markets through leadership products in the coming decade.”

“Joining SanDisk is a great opportunity for our shareholders, employees and partners. It strengthens the foundation for the continued growth of the business we have built together over the past 18 years. We are proud of creating true value and I have no doubt that the joint organization will continue creating innovation, value and success,” said Dov Moran, President and CEO of msystems.

On July 30, 2006, SanDisk and msystems entered into definitive agreements for SanDisk to acquire msystems in an all stock transaction. In the transaction, each msystems ordinary share will be converted into 0.76368 of a share of SanDisk common stock, and options or other rights in msystems shares will be converted using the same ratio. Effective with the closing of the transaction, trading in msystems common stock on the NASDAQ stock market will cease.