SanDisk 2003 Annual Report Download - page 97

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
In February 2004, the Company committed to loan FlashVision up to approximately $150.4 million to
fund additional 200-millimeter fabrication capacity through the end of Ñscal 2004. This loan is secured by the
equipment purchased by FlashVision using the loan proceeds. Additional loans are expected to be made in
several tranches through the Ñrst quarter of Ñscal 2006. Because the Company's funding obligation is
denominated in Japanese Yen, the amount of its obligation on a given date when converted to U.S. Dollars
will Öuctuate based on the exchange rate in eÅect on that date.
On February 20, 2004, the Company and a number of other manufacturers of Öash memory products
were sued in the Superior Court of the State of California for the City and County of San Francisco in a
purported consumer class action captioned Willem Vroegh et al. v. Dane Electric Corp. USA, et al. alleging
false advertising, unfair business practices, breach of contract, fraud, deceit, misrepresentation and violation of
the California Consumers Legal Remedy Act. The lawsuit purports to be on behalf of a class of purchasers of
Öash memory products and claims that the defendants overstated the size of the memory storage capabilities
of such products. The lawsuit seeks restitution, injunction and damages in an unspeciÑed amount.
93