Flash Memory, Inc.

Exhibit 1 Income Statements, 2007 - 2009 ($000s except earnings per share)

2007 2008 2009 2010E 2011E 2012E

Net sales $77,131 $80,953 $89,250 $120,000 $144,000 $144,000

Cost of goods sold $62,519 $68,382 $72,424 $97,320 $116,784 $116,784
Gross margin $14,612 $12,571 $16,826 $22,680 $27,216 $27,216

Research and development $3,726 $4,133 $4,416 $6,000 $7,200 $7,200

Selling, general and administrative $6,594 $7,536 $7,458 $10,032 $12,038 $12,038
Operating income $4,292 $902 $4,952 $6,648 $7,978 $7,978

Interest expense $480 $652 $735 $937 $1,323 $1,565

Other income (expenses) -$39 -$27 -$35 -$50 -$50 -$50

Income before income taxes $3,773 $223 $4,182 $5,661 $6,604 $6,363

Income taxes (a) $1,509 $89 $1,673 $2,264 $2,642 $2,545

Net income $2,264 $134 $2,509 $3,396 $3,963 $3,818

Earnings per share $1.52 $0.09 $1.68 $2.28 $2.66 $2.56

(a) In years 2007 and after, Flash's effective combined federal and state income tax rate was 40%.

Assumptions
COGS as % of sales 81.06% 84.47% 81.15% 81.10% 81.10% 81.10%
Research and development as % of sales 4.83% 5.11% 4.95% 5.00% 5.00% 5.00%
SGA as % of sales 8.55% 9.31% 8.36% 8.36% 8.36% 8.36%
Flash Memory, Inc.

Exhibit 2 Balance Sheets, 2007 - 2009 ($000s except number of shares outstanding)

December 31, December 31,

2007 2008 2009 2010E 2011E 2012E

Cash $2,536 $2,218 $2,934 $3,960 $4,752 $4,752

Accounts receivable $10,988 $12,864 $14,671 $19,726 $23,671 $23,671
Inventories $9,592 $11,072 $11,509 $13,865 $16,638 $16,638
Prepaid expenses $309 $324 $357 $480 $576 $576
Total current assets $23,425 $26,478 $29,471 $38,031 $45,637 $45,637

Property, plant & equipment at cost $5,306 $6,116 $7,282 $8,182 $9,082 $9,982
Less: Accumulated depreciation $792 $1,174 $1,633 $2,179 $2,793 $3,474
Net property, plant & equipment $4,514 $4,942 $5,649 $6,003 $6,289 $6,508

Total assets $27,939 $31,420 $35,120 $44,034 $51,926 $52,145

Accounts payable $3,084 $4,268 $3,929 $4,799 $5,759 $5,759

Notes payable (a) $6,620 $8,873 $10,132 $14,305 $16,914 $13,324
Accrued expenses $563 $591 $652 $876 $1,051 $1,051
Income taxes payable (b) $151 $9 $167 $226 $264 $255
Other current liabilities $478 $502 $554 $744 $893 $893
Total current liabilities $10,896 $14,243 $15,434 $20,951 $24,881 $21,282

Common stock at par value $15 $15 $15 $15 $15 $15
Paid in capital in excess of par value $7,980 $7,980 $7,980 $7,980 $7,980 $7,980
Retained earnings $9,048 $9,182 $11,691 $15,087 $19,050 $22,868
Total shareholders' equity $17,043 $17,177 $19,686 $23,082 $27,045 $30,863

Total liabilities & shareholders' equity $27,939 $31,420 $35,120 $44,033 $51,926 $52,145
Balance Sheet Check $0 $0 $0 $0 $0 $0
Number of shares outstanding 1,491,662 1,491,662 1,491,662 1,491,662 1,491,662 1,491,662

(a) Secured by accounts receivable.

(b) To avoid a penalty for underpayment of income taxes, Flash made equal estimated tax payments quarterly on the 15th of
April, June, September, and December of each year. The total of these four quarterly payments was required to equal at
least the lesser of (a) 90% of the taxes that would actually be incurred in the same year, or (b) 100% of the taxes due
on income of the prior year.

For informational purposes only:

Notes payable / accounts receivable 60.2% 69.0% 69.1%

Notes payable / shareholders' equity 38.8% 51.7% 51.5%
Notes payable / total capital 28.0% 34.1% 34.0%
Flash Memory, Inc.

Exhibit 3 Key Forecasting Assumptions and Relationships for 2010 Through 2012

Line Item Assumption or Ratio

Cost of goods sold 81.10% of sales

Research and development 5.0% of sales
Selling, general and administrative 8.36% of sales
Interest expense Beginning of year debt balance × interest rate
Other income (expenses) $50,000 of expense each year

Cash 3.3% of sales

Accounts receivable 60 days sales outstanding
Inventories 52 days of cost of good sold
Prepaid expenses 0.4% of sales
Property, plant & equipment at cost Beginning PP&E at cost + capital expenditures
Accumulated depreciation Beginning A/D + 7.5% of beginning PP&E at cost

Accounts payable 30 days of purchases

Purchases 60% of cost of goods sold
Accrued expenses 0.73% of sales
Income taxes payable 10% of income taxes expense
Other current liabilities 0.62% of sales
Flash Memory, Inc.

Exhibit 4 Selected Financial Information for Flash Memory, Inc., and Selected Competitors, 2007 through 2009

Flash Memory, Inc. Micron Technology

2007 2008 2009 30-Apr-10 (a) 2007 2008 2009 30-Apr-10 (a)

Sales ($ millions) 77 81 89 120 5,688 5,841 4,803

EPS ($) 1.52 0.09 1.68 2.28 -0.42 -2.10 -2.29 1.46
Dividend per share ($) -- -- -- -- -- -- --
Closing stock price ($) n/a n/a n/a n/a 7.25 2.64 10.56 9.35
Shares outstanding (millions) 1.492 1.492 1.492 1.492 769.1 772.5 800.7 847.6
Book Value per share ($) 11.43 11.52 13.20 15.47 10.08 8.00 5.81 6.61
ROE 13.28% 0.78% 12.75% 14.71% -4.13% -26.21% -39.43% 21.00%
Capitalization (book value)
Debt 28% 34% 34% 38% 24% 31% 40% 33%
Equity 72% 66% 66% 62% 76% 69% 60% 67%
Beta coefficient n/a 1.25

SanDisk Corporation STEC, Inc.

Sales ($ millions) 3,986 3,351 3,567 189 227 354

EPS ($) 0.84 -8.82 1.83 3.71 0.20 0.09 1.47 1.29
Dividend per share ($) -- -- -- -- -- --
Closing stock price ($) 33.17 9.60 28.99 39.84 8.74 4.26 16.34 13.90
Shares outstanding (millions) 227.7 225.3 227.4 229.3 49.8 50.0 49.4 50.3
Book Value per share ($) 22.64 15.27 17.18 18.13 3.72 3.63 5.65 5.48
ROE 3.70% -57.74% 10.63% 17.87% 5.40% 2.36% 26.06% 18.90%
Capitalization (book value)
Debt 15% 22% 21% 19% 0% 0% 0% 0%
Equity 85% 78% 79% 81% 100% 100% 100% 100%
Beta coefficient 1.36 1.00

(a) Security analyst estimates for year-end EPS $ and Return on Equity; actual data on April 30, 2010, for all other items.