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M-Systems' mDiskOnChip G3 Provides Next-Generation Flash Storage for Embedded Systems
[March 30, 2004]

M-Systems' mDiskOnChip G3 Provides Next-Generation Flash Storage for Embedded Systems

SAN FRANCISCO --(Business Wire)-- March 30, 2004 -- Leading Companies Validate mDiskOnChip G3 for No-Compromise Cost, Reliability and Performance

M-Systems (Nasdaq:FLSH) today announced the availability of mDiskOnChip G3 for the embedded systems market. mDiskOnChip G3 leverages M-Systems' field-proven technologies developed for mobile phones and PDAs to deliver the most reliable multi-level cell (MLC) NAND flash-based data and code storage solution to the embedded systems market. Applications such as telecom routers and switches, point of sale (POS) handheld terminals, digital TVs, residential and wireless gateways and digital still/video cameras can benefit from the cost savings of MLC technology with the reliability and performance of DiskOnChip.

M-Systems is capitalizing on its successes in the mobile space with its new mDiskOnChip G3 for the embedded market, said David Tolub, vice president and co-manager of M-Systems' DiskOnChip business unit. For the first time, embedded customers can benefit from the latest MLC NAND flash technology with the low cost, extreme reliability and high performance that embedded systems manufacturers have come to expect.

mDiskOnChip G3 is optimized for seamless integration in embedded systems with support for all major CPU architectures (such as ARM, MIPS, Power PC and x86) and operating systems (such as Microsoft Windows CE.NET, Linux and VxWorks). It is based on the same technologies that catapulted Mobile DiskOnChip G3 to success, making it the choice of four out of the five top mobile phone manufacturers and among the 100 top products of 2003, according to EDN Magazine. Among these technologies are x2 technology and TrueFFS. x2 technology was developed by M-Systems to overcome the reliability and performance degradation of highly cost-effective MLC NAND technology, which stores twice the amount of data per cell than the standard, single bit, NAND flash. TrueFFS has become an industry-standard for flash management, maximizing the lifetime of flash and incorporating algorithms for error detection and correction to guarantee data reliability.


M-Systems' new mDiskOnChip G3 promises to bring very attractive storage price points to wireless and security applications, particularly in the enterprise and small-medium business space, said Bill Bunch, senior marketing manager, Wireless Networking, Broadcom Corporation. Our ODMs and OEMs will appreciate the proposition of secure, reliable and robust storage space, with the cost structure of MLC NAND. We look forward to integrating mDiskOnChip G3 into our reference designs.

MontaVista Software is excited by the launch of M-Systems' mDiskOnChip G3 flash disk. Cost-effective and reliable, it offers a key building block for a variety of advanced consumer electronics devices, especially handheld wireless applications, said Bill Weinberg, director of strategic marketing, MontaVista Software. For MontaVista customers and hardware partners, mDiskOnChip G3 complements the capabilities of MontaVista Linux, providing turn-key support for solid-state MLC NAND-based mass storage, in a small package, at the right price.

About DiskOnChip Solutions

M-Systems offers a full portfolio of DiskOnChip products meeting the varying needs of the embedded market from industrial PCs, thin clients, telecom, POS, set-top boxes, servers and network infrastructure equipment. On-board solutions include the mDiskOnChip G3 and DiskOnChip Millennium Plus, available in FBGA and TSOP-1 form factors and cascadable up to 256MB. Modular devices include the uDiskOnChip with a USB 2.0 interface in capacities ranging from 16MB to 1GB; iDiskOnChip in an IDE interface in capacities from 16MB to 512MB; and the DiskOnChip 2000 family in the standard 32-pin DIP packaging in capacities of 16MB to 1GB. For more information about mDiskOnChip G3, please visit www.m-systems.com/mDOC_G3. For information on M-Systems' range of storage solutions for embedded systems, see www.m-systems.com/content/Markets/Embedded.asp.

About M-Systems

M-Systems designs, develops and markets innovative flash data storage solutions for digital consumer electronics markets. M-Systems primarily targets two fast-growing digital consumer electronics markets: the USB (universal serial bus) flash drive market with its DiskOnKey product and the multimedia mobile handset market with its Mobile DiskOnChip products. For more information, please contact M-Systems at www.m-systems.com.

Note to Editors: High-resolution photo images of M-Systems' products can be found on the Internet at www.m-systems.com/content/Corporate/Press/Photos.asp.

All company and product names mentioned may be trademarks or registered trademarks of their respective holders and are used for identification purposes only.

NOTE: This press release includes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements, as they are subject to various risks and uncertainties which may cause actual results to vary significantly. These risks include, but are not limited to: the effect of global economic conditions in general and conditions in M-Systems' industry and target markets in particular, shifts in supply and demand, market acceptance, the impact of competitive products and pricing, product development, commercialization and technological difficulties, and capacity and supply constraints including dependence on flash component suppliers; changes in M-Systems' and its customers' inventory levels and inventory valuations; timely product and technology development/upgrades and the ability to manage changes in market conditions as needed; market acceptance of new products and continuing product demand; the impact of competitive products and pricing on M-Systems' and its customers' products and markets; the development, release and sale of new products by strategic suppliers and customers; the development and growth of anticipated markets for M-Systems' and its customers' products; and other risk factors detailed from time to time in M-Systems' filings with the Securities and Exchange Commission. M-Systems assumes no obligation to update the information in this press release and disclaims any obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements. Reference to M-Systems' website above does not constitute incorporation of any of the information thereon into this press release.

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