Arrow and M-Systems Sign Distribution Agreement; Flash Data Storage Now Available to Arrow's OEM Customers.

ENGLEWOOD, Colo. & SUNNYVALE, Calif. -- Arrow OEM Computing Solutions (OCS), the division of Arrow Electronics, Inc. (NYSE: ARW) that provides design engineering, manufacturing, system integration, supply chain management, and post-manufacturing services to industrial OEMs and intellectual property-based companies, and M-Systems (Nasdaq: FLSH), an industry leader and innovator of flash-based data storage devices, today announced they have signed a distribution agreement that will enable Arrow to provide embedded flash data storage products to its OEM customers in the United States and Canada. E[acute accent]Arrow's OEM partners will now have access to embedded flash storage options in a variety of form factors including ruggedized flash drives and modular and onboard flash disk products. Specifically, Arrow will offer its customers M-Systems' Fast Flash Disk (FFD(TM)) and DiskOnChip(R) products, as well as the ability to integrate FFD and DiskOnChip into new and existing products at its Logistics and Value-Added Center in Phoenix. E[acute accent]M-Systems flash data storage technology brings significant added value to a large number of vertical industries, including military, point-of-sale, telecommunications, thin clients and consumer electronics. FFD is a true drop-in replacement for mechanical hard drives, providing the ruggedness and reliability unavailable in mechanical drives. Additional advantages of M-Systems' embedded flash drive technology include the speed of data transfer, a high degree of reliability and endurance, the ability to withstand extreme temperatures and a low total cost of ownership due to low to no maintenance requirements. E[acute accent]"Today's announcement is evidence of Arrow's dedication to providing our customers with the highest-quality technologies from the industry's most respected suppliers," said Steve Ramsland, vice president and general manager, Arrow OEM Computing Solutions. "M-Systems' vertical expertise complements our own and this combined experience will clearly benefit our mutual customers." E[acute accent]"We are proud to be Arrow's first and only supplier of Flash Data Storage," said Scott Deutsch, M-Systems' vice president of sales for the Americas. "Adding Arrow to our list of world-class distribution partners increases our ability to deliver reliable, high-performance products. With their system expertise and ability to service large customers, we look forward to a prosperous relationship with Arrow for many years to come."

E[acute accent]About the North American Computer Products group of Arrow Electronics

E[acute accent]The North American Computer Products group of Arrow Electronics, Inc. (NYSE: ARW) is a leading distributor of enterprise and embedded computing systems to resellers and OEM customers in North America. Based in Englewood, CO, the group is comprised of four divisions that make up Enterprise Computing Solutions (Support Net, SBM, MOCA, Enterprise Storage Solutions) and OEM Computing Solutions, which serves complex and industrial OEM customers. Visit us at www.arrownacp.com. E[acute accent]Arrow Electronics is one of the world's largest distributors of electronic components and computer products and a leading provider of services to the electronics industry.

E[acute accent]About M-Systems

E[acute accent]M-Systems develops, manufactures and markets innovative flash-based data storage solutions for consumer electronics and embedded markets. The Company targets the fast growing multimedia mobile handset market with its DiskOnChip(R) and MegaSIM(TM) solutions and the popular USB flash drive market with its DiskOnKey(R) product. More information about M-Systems is available online at www.m-systems.com.