M-Systems Introduces Market's Highest Capacity, Highest Performance Flash Drive for Military and Aerospace Applications, Servers and Broadcasting Systems.

SUNNYVALE, Calif. -- With Capacities Up to 176 Gigabytes and Burst Performance of 320 Megabytes per Second, the FFD(TM) Ultra320 SCSI Provides Highly Reliable Solid-State Data Storage for Mission Critical Systems

Military and Aerospace integrators can now fulfill their higher capacity requirements by using the new FFD(TM) Ultra320 SCSI flash disk from M-Systems (Nasdaq:FLSH), a leader in flash-based data storage products. The new product released today is now in mass production with capacities ranging from 1 to 176 gigabytes and SCSI interface speeds of 320 megabytes per second, all within in a standard 3.5" case.

The new FFD Ultra320 SCSI is specifically designed for mission critical systems required by the military, aerospace, telecommunication, video server, broadcasting and factory automation industries.

"We have seen a tremendous demand for a rugged high capacity flash disk at an attractive price," said Ofer Tsur, vice president of sales and marketing for M-Systems' embedded division. "For the first time, the highest flash disk capacity in standard disk casing combined with a 320 megabyte per second SCSI bus interface is available on the market. With the price of flash-based products now even more attractive, a broader range of applications will enjoy the top data reliability and endurance of the FFD Ultra320 SCSI."

The FFD Ultra320 SCSI meets the MIL-STD-810F standards for shocks, vibrations and altitude. Its high level of endurance is enabled by its embedded TrueFFS(TM) flash management software, which provides more than five million write/erase cycles. The FFD Ultra320 SCSI operates at -40c to +85c and complies with the NSA, DoD, IRIG 106, US Air Force, Navy and Army procedures for data sanitization (purge).

The FFD Ultra320 SCSI is available in capacities up to 64 gigabytes in a 3.5" case measuring half an inch thick and up to 176 gigabytes in a case of one inch thickness. The FFD Ultra320 SCSI currently supports an 80-pin connector and will support a 68-pin connector this quarter. More details on the FFD Ultra320 SCSI product are available online at www.m-systems.com/rugged.

About M-Systems

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.

Note to Editors: High-resolution photo images of M-Systems' FFD Ultra 320 SCSI flash disk are available online at www.m-systems.com/images/PRS/Ultra320vert.jpg and www.m-systems.com/images/PRS/Ultra320diag.jpg. High-resolution photo images of other products from M-Systems can be found online 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.

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.