COPPELL, Texas, Sept. 25 /PRNewswire-FirstCall/ -- CellStar Corporation (OTC Pink Sheets: CLST) today announced that SanDisk(R), the world's largest supplier of flash data storage card products, has named CellStar a distributor for its extensive line of flash memory cards for the mobile phone industry.

"Memory cards are used on an increasingly large number of handsets, such as music phones, television-capable phones, pocket PCs and PDAs. The storage devices are also popular with customers who store and send pictures and videos," said Maria Hernandez, U.S. Region Vice President and General Manager at CellStar. "Our extensive network of carriers, dealers and resellers are very excited about being able to offer customers these premier SanDisk memory products."

SanDisk offers a wide selection of storage devices with varying capacities. At the CTIA Wireless Show in Los Angeles, the company announced the highest capacity card for cellphones, the 4GB SanDisk miniSDHC card. The card provides the speed and capacity required to support increasingly popular but storage-intensive applications such as digital imaging, music and video record/playback functions, as well as mobile television and videogames. It can store more than 2,000 high-resolution pictures, more than 1,000 digital songs, or up to 8 hours of MPEG 4 video.

CellStar will distribute the entire SanDisk product line, including their Sansa MP3 music players, to its vast network of U.S. wireless operators, dealers, retailers, and MVNOs.

"There is a growing demand for flash memory products, and as new devices continue to enter the market that allow consumers the ability to increase their memory options, consumers will want to fully unleash this power," added Hernandez.

About CellStar Corporation

CellStar Corporation is a leading provider of logistics and distribution services to the wireless communications industry. CellStar has operations in North America and Latin America, and distributes handsets, related accessories and other wireless products from leading manufacturers to an extensive network of wireless service providers, agents, MVNO's, insurance/warranty providers and big box retailers. CellStar specializes in completely integrated forward and reverse logistics solutions, repair and refurbishment services, and in some of its markets, provides activation services that generate new subscribers for wireless service providers. For more information, visit http://www.cellstar.com/ .

This news release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. A variety of risk factors, including the Company's ability to implement its business strategies, manage cost-reduction actions, maintain its channels of distribution, continue to secure an adequate supply of competitive products on a timely basis and on commercially reasonable terms, maintain or improve its operating margins, secure adequate financial resources, maintain an adequate system of internal control, comply with debt covenants, and continually turn its inventories and accounts receivable, as well as changes in foreign laws, regulations and tariffs, continued consolidation in the wireless market, new technologies, system implementation or continuation difficulties, competition, handset shortages or overages, terrorist acts or other unforeseen events, economic weakness in the U.S. and other countries in which the Company does business and other risk factors, are discussed in the Company's Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q. Any one, or a combination of these risk factors could cause CellStar's actual results to vary materially from anticipated results or other expectations expressed in the Company's forward-looking statements.

CONTACT: Sherrian Gunn of CellStar Corporation, +1-972-462-3530, or
ir@cellstar.com

Web site: http://www.cellstar.com/