M-Systems Introduces World's Smallest Wide SCSI Flash Disk Designed Specifically for Blade Servers and Other Space-Constrained Applications.

SANTA CLARA, Calif. -- New FFD(TM) 2.5" Ultra Wide SCSI Provides Highly Reliable Solid-State Data Storage and Low Power Consumption within a Minimal Package

M-Systems (Nasdaq:FLSH) released today the FFD 2.5" Ultra Wide SCSI flash disk. Manufactured in a case height measuring as little as 11.5mm, this new product is the smallest flash disk currently available with a wide SCSI interface.

High-density computing applications with extreme space limitations, such as blade servers, provide a challenge for system designers. Blade servers are extremely dense rack-mount servers, which require data storage that complies with low-output HVAC (Heating, Ventilation and Air-Conditioning). Traditional mechanical disks, due to their rotating mechanism, have difficulty complying with this requirement and typically operate at +5 degrees Celsius to +55 degrees Celsius. With an operating range of -40 degrees Celsius to +85 degrees Celsius, M-Systems' solid-state FFD flash disk complies with NEBS level 3, which is the highest standard for mission-critical telecommunications applications.

A high mean time between failures (MTBF) enabled by M-Systems' technology and TrueFFS(R) flash management software allows blade server customers to replace two rotating mechanical disks and deploy only one FFD flash disk without the need for a back-up. Such replacement ultimately provides cost savings, low maintenance, less power consumption and free space within the blade, which yields increased airflow and enables future blade servers to be even smaller than they are today.

"M-Systems' FFD 2.5" Wide SCSI provides an ideal solution for high-density computing systems, such as blade servers, due to its small size, high reliability and low power consumption," said Ofer Tsur, vice president of sales and marketing for M-Systems' Embedded division. "As flash prices continue to decline, high-density computing applications will migrate from mechanical disks to more reliable flash drives and will reap the benefits of increased operational temperature ranges, maintenance-free operation and power consumption about a third that of a typical mechanical disk."

About the FFD 2.5" Ultra Wide SCSI

The FFD 2.5" Ultra Wide SCSI is a solid-state disk with an 80-pin hot-swap connector designed to perform with a burst read/write rate of up to 40 megabytes per second. Based on M-Systems' TrueFFS flash file system, it is designed to offer the industry's highest endurance and reliability rates of more than 5 millions write/erase cycles. The FFD 2.5" Ultra Wide SCSI is currently in mass production and is available now. More information about M-Systems' FFD products can be found online at www.m-systems.com/content/Products/FFDFamily.asp.

About M-Systems

M-Systems designs, develops and markets innovative flash data storage solutions for digital consumer electronics markets. M-Systems primarily targets two fast-growing digital consumer electronics markets: the USB (universal serial bus) flash drive market with its DiskOnKey(R) product and the multimedia mobile handset market with its Mobile DiskOnChip(R) products. For more information, please contact M-Systems at www.m-systems.com.

Note to Editors: High-resolution photo images of M-Systems' new FFD Ultra Wide 2.5" SCSI flash disk can be found online at www.m-systems.com/images/prs/FFD_25_US80.jpg and www.m-systems.com/images/prs/FFD_25_US80-2.JPG. High-resolution photo images of other M-Systems products can be found 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' Web site above does not constitute incorporation of any of the information thereon into this press release.