M-Systems Adds New Memory Cards to Its Mobile Market Offering; New M-Card Form Factors Complement Company's M-DOC and M-SIM Offerings to Mobile Handset Vendors, Mobile Network Operators and Retail Brand Partners.

BARCELONA, Spain -- M-Systems (Nasdaq: FLSH), a leader in smart personal storage, today announced the availability of new M-Card memory card form factors for the mobile market. The availability of mobile memory cards completes the company's offering to the mobile market which includes M-DOC and M-SIM product lines. To help meet customer demand, M-Systems' M-Card memory cards are now being offered in new form factors such as MiniSD, MicroSD, RS-MMC and MMCmobile.

"M-Systems takes great pride in its ability to provide its customers with quality memory cards, which ultimately enable a smarter subscriber experience," said Noam Kedem, vice president of marketing and business development for M-Systems. "To meet market demand for its M-Card memory cards and other flash solutions, M-Systems has consistently and successfully pursued strategic partnerships with the world's leading flash manufacturers. These partnerships guarantee M-Systems a supply of cost-effective flash, helping to ensure delivery to its customers worldwide."

M-Systems' M-Card memory cards are available through various partners in a wide range of form factors and densities.

About M-Systems

M-Systems has been transforming raw flash material into smarter storage solutions since 1989. From embedded flash drives deployed in millions of mobile handsets to U3 USB smart drives designed for leading global brands, M-Systems creates, develops, manufactures and markets smart personal storage solutions for a myriad of applications targeting high growth markets. M-Systems' product lines include:

--M-Drive (formerly DiskOnKey(R)) U3 USB smart drives for personal, portable computing

--M-DOC embedded flash drives for mobile handsets and consumer electronics devices

--M-SIM MegaSIM(R) series high-density SIM cards and M-SIM M.MAR(R) series SIM cards and highly secure cards (available both from M-Systems and its subsidiary Microelectronica)

--M-Card, high-quality memory cards for mobile handsets and digital cameras

--M-Trust (formerly Xkey(R)) end-to-end enterprise access, control and management solution for USB flash drives and other removable media 

--M-SSD (formerly FFD(TM)) rugged solid state disks for mission-critical applications

--M-Module (formerly DiskOnChip(R) modular family) modular flash storage for embedded systems 

--M-Safe (formerly SuperMAP(R) family) secure hardware and software crypto cores

More information is available online at www.m-systems.com. M-Systems. Made smarter.

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

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.