Darim Vision Selects M-Systems' DiskOnChip for NetGator, a New Multimedia Streaming Solution; Darim Expects to Place an Initial Order for Tens of Thousands of DiskOnChip Flash Disks.

Business Editors and High-Tech Writers

CeBIT 2001

Hall 13, Stand E63

HANOVER, Germany--(BUSINESS WIRE)--March 22, 2001

M-Systems Flash Disk Pioneers Ltd. (Nasdaq:FLSH), a leader in flash disk data storage products for embedded systems, Internet appliances and telecom/networking markets, today announced it was selected by Darim Vision Co. Ltd. to supply the data storage device for NetGator, its new multimedia streaming solution for the Internet.

Darim has indicated that it will place an initial order of tens of thousands of DiskOnChip flash disks for use in its NetGator, a small stand-alone box that provides the capabilities of a full-featured multimedia content streaming server.

By connecting NetGator to a camera, microphone and Ethernet network, a user can deliver live streaming MPEG1 video and audio, or high quality JPEG still images, to users' desktops.

With DiskOnChip and its Web server software, NetGator stores a compact-sized Web site that users can access remotely with regular Web browsers. The contents of the Web site can be easily customized by the end user and uploaded to the NetGator memory using TFTP protocol.

"M-Systems' DiskOnChip flash disk provided easy and excellent answers to many of the key design issues that we encountered while developing the NetGator," said Kai J. Leuze, president of Darim Europe AG.

"With DiskOnChip, we were able to easily integrate a reliable flash-based storage solution into our product that gives us the flexibility to change the memory capacity without having to redesign the product."

"We are proud that our DiskOnChip is part of this product that is ideal for such needs as corporate video conferencing, remote monitoring and surveillance," said Tamir Galili, vice president of worldwide sales for M-Systems. "This is another great application for DiskOnChip, whose features contribute to the NetGator's small size and dependability."

Darim Vision is displaying the NetGator with M-Systems' DiskOnChip March 21-28 at CeBIT 2001 in Hall 9 in Darim's booth, D36.

About Darim Vision Co. Ltd.

Established in 1994, Darim Vision Co. Ltd. is a well-recognized developer and manufacturer of MPEG encoding hardware and software products with headquarters in South Korea, with offices in the United States and Europe. More information is available on the company's Web site at www.darim.com or www.darim.de, or by calling 888/GET-MPEG (438-6734).

About M-Systems Flash Disk Pioneers Ltd.

M-Systems Flash Disk Pioneers Ltd. is a leading developer, manufacturer and marketer of innovative data storage products, known as flash disks, which are primarily used in embedded systems, Internet appliances and telecom/networking markets. The company's flash disks provide the functionality of a mechanical hard drive on a solid-state silicon chip.

M-Systems was first to bring to market a complete flash disk in a single die, using breakthrough DiskOnChip Millennium technology. The company's products are based on its patented TrueFFS technology and include the DiskOnChip(R), DiskOnKey(TM), and Fast Flash Disk (FFD) product families.

For more information, contact M-Systems at 8371 Central Ave., Suite A, Newark, Calif. 94560. Telephone: [phone]. E-mail: [e-mail]; and, on the Internet, http://www.m-sys.com.

This news 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 that may cause actual results to vary significantly. These risks include (but are not limited to) those related to the risk that the design win and/or purchases contemplated in this release will be delayed or cancelled, in whole or in part; that any other expected orders from this customer may not materialize; as well as the other risk factors detailed in the company's registration statement dated March 7, 2000, and other filings with the Securities and Exchange Commission.

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