Advantech Offers M-Systems' Solid-State IDE and SCSI Fast Flash Disk Solutions Worldwide.

Business Editors & High-Tech Writers

CeBIT 2002

Hall 24, Booth C32

HANNOVER, Germany--(BUSINESS WIRE)--March 15, 2002

Combined Offering Helps to Contribute to Ease of Integration and Cost

Savings for Military, Telecom and Factory Automation Customers

M-Systems (Nasdaq:FLSH), a leader in flash disk data storage products, today announced that Advantech Co. Ltd. (TAI:2395.TW), Taiwan's largest producer of industrial computer products, will include M-Systems' Fast Flash Disk (FFD) family of solid-state IDE and SCSI products in its portfolio offering.

The inclusion of M-Systems' FFD line enhances Advantech's product offering by providing commercial-off-the-shelf (COTS) solid-state disk solutions for customers, such as those found in the military, telecom and factory automation industries that require high-performance products to operate reliably under the harshest conditions.

With FFD, Advantech's product offering to military customers now includes highly reliable storage solutions. The solid-state disk solutions can withstand shocks and vibrations for Military Standard (MIL-STD) 810C&E, operate in high altitudes and within temperature ranges of minus 40 degrees C to plus 85 degrees C.

M-Systems' IDE and SCSI flash disks also comply with rigorous telecommunications standards such as Networks Equipment Building Standards (NEBS) Level 3 and equivalent European Telecom Standards (ETS), which are mandatory requirements for carriers installing telecom equipment at central offices in North America and Europe.

Based on GR-63-CORE and GR-1089-CORE standards, NEBS determine the ability of telecom products to operate under electrical and physical stress such as temperature extremes, earthquakes and other harsh environmental conditions. Incorporating M-Systems' IDE and SCSI flash disks into their product offering allows Advantech to easily provide solutions that comply with these stringent standards for their customers.

"The combination of Advantech's leading industrial automation, network and embedded computers with M-Systems' IDE, narrow SCSI and ultra-wide SCSI Fast Flash Disks will better support customers and increase our market exposure," said Ofer Tsur, M-Systems' marketing director for Fast Flash Disks.

"Customers can now purchase their advanced computing platforms and highly reliable data storage from the same source, saving integration time and qualification costs for their military, telecommunications and factory automation applications.

"Advantech, with its 35 sales offices in most major cities in the U.S., Europe, Southern Asia Pacific, Japan, China and Taiwan, can offer these total solutions to its customers and provide excellent support with its global presence."

About M-Systems' IDE and SCSI Solid-State Flash Disks

M-Systems provides a full portfolio of rugged solid-state disks that includes FFD 2.5-inch IDE, FFD 2.5-inch SCSI, FFD 3.5-inch SCSI and FFD 3.5-inch Ultra Wide SCSI with capacities ranging from 64MB to 17.4GB in standard 2.5-inch and 3.5-inch form factors and performance up to 40.0 megabytes per second.

For more information, visit the FFD section of M-Systems' Web site at http://www.m-sys.com/content/products/FFDfamilyPage.asp.

About Advantech

Advantech is amongst the world's largest suppliers of industrial computers and manufactures computing platforms for communications, industrial automation and embedded computing. Founded in 1983 as a turnkey system integrator, today Advantech employs more than 1,200 people worldwide and offers more than 400 PC/Web-based products.

Corporate headquarters are located in Taipei, Taiwan. Branch offices and manufacturing facilities are established around the globe, with distributors in more than 80 countries. For more information, visit the Advantech Web site at www.advantech.com.

About M-Systems

M-Systems is a leader and innovator of flash-based data storage products known as flash disks. M-Systems' flash disks provide the functionality of a mechanical hard drive in a silicon chip. M-Systems' products are based on its patented TrueFFS(R) technology and target applications in a vast array of markets, including connected devices, mobile and telecom.

M-Systems' products include the DiskOnChip(R), DiskOnKey(TM) and Fast Flash Disk (FFD) product families. For more information, contact M-Systems at www.m-sys.com.

The matters discussed in this news release include forward-looking statements that are subject to risks and uncertainties that may cause actual results to vary significantly. These risks include market and competitive factors, and other risks described in the company's registration statement dated March 7, 2000, and other periodic reports filed with the Securities and Exchange Commission. The company assumes no obligation to update the information in this release. Reference to the company's Web site above does not constitute incorporation of any of the information thereon into this news release.

Note to Editors: High-resolution photo images of M-Systems' Fast Flash Disk (FFD) products can be found on the Internet at www.m-sys.com/content/news/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.