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M-Systems and Renesas Technology Intensify Partnership to Increase Availability of Advanced Multimedia Mobile Phone Architecture.


Business Editors/High-Tech Writers

TOKYO & KFAR SABA, Israel--(BUSINESS WIRE)--March 16, 2004

Mobile DiskOnChip Included within Solution Engine(R), System

Development Platform for the SH-Mobile Application Processor

M-Systems (Nasdaq:FLSH) and Renesas Technology Corp., the joint-venture semiconductor company established by Hitachi, Ltd. (TSE See Tokyo Stock Exchange.

TSE

1. See Tokyo Stock Exchange (TSE).

2. See Toronto Stock Exchange (TSE).
:6501)(NYSE NYSE

See: New York Stock Exchange
:HIT) and Mitsubishi Electric Corporation (TSE:6503), today announced that they have extended their partnership to increase the availability of advanced multimedia mobile phone architecture.

As part of this new level of partnership, the Companies are porting Mobile DiskOnChip onto the Solution Engine System Development Platform for the SH-Mobile Application Processor from Renesas Technology.

"SH-Mobile from Renesas Technology is one of the most popular processors for mobile applications," said David Tolub, vice president and co-manager of M-Systems' DiskOnChip business unit. "Being included within Solution Engine establishes Mobile DiskOnChip as an important mobile storage solution that is helping to bring about an evolution in mobile memory system architecture."

SH-Mobile processors deliver complete multimedia solutions to the world's major manufacturers of mobile phones and other wireless communication devices. With the complete Solution Engine platform system solution from Renesas Technology, manufacturers can focus their efforts on application development and product differentiation Product Differentiation

A source of competitive advantage that depends on producing some item that is regarded to have unique and valuable characteristics.
 rather than on initial research & development, saving designers and manufacturers valuable time to market.

Additionally, at the invitation of Renesas Technology, M-Systems has joined the Renesas Technology-sponsored SH-Mobile Consortium, a development community established to help the proliferation and rapid deployment of SH-Mobile processors and related products like Mobile DiskOnChip.

This new level of partnership between the Companies will facilitate the availability of advanced multimedia mobile phone architecture, helping to offer a greater variety of solutions for SH-Mobile customers while widening the use of the highly acclaimed technology from M-Systems, in addition to Renesas Technology's superAND flash memory that is already supported by SH-Mobile.

Advanced multimedia phone architecture requires fast, low-power processors and reliable, high-performance storage media to operate the latest features, such as cameras, online gaming and video, and audio playback. The Solution Engine from Renesas Technology combines the fast, low-power SH-Mobile processor and the reliable, high-performance Mobile DiskOnChip flash disk from M-Systems to make an advanced multimedia mobile phone architecture that offers a complete, ready-to-test design to product manufacturers.

"The combination of SH-Mobile and Mobile DiskOnChip offers a very cost-effective and high-performance solution for multimedia phones," said Ikuya Kawasaki, department manager of SOC Design Dept. 6, SOC Div., MCU (1) (MicroController Unit) A computer on a single chip. See microcontroller.

(2) (Multipoint Control Unit) A device that is used to moderate a videoconference of three or more end points (users at computers or groups of users
 & SOC Business Unit, Renesas Technology. "Together, we are enabling the most advanced features and applications in devices by maximizing the benefits of multi-level cell data storage memory."

Mobile DiskOnChip, selected by EDN as one of the top 100 products of 2003, is a high-capacity NAND-based on-board multimedia memory solution. It is targeted specifically for multimedia mobile handsets and provides phone manufacturers with the latest in flash technology. Featuring unmatched reliability and an ultra thin controller, Mobile DiskOnChip, the on-board multi-level cell (MLC (MultiLevel Cell) A flash memory technology that stores more than one bit per cell. Traditional flash memory defines a 0 or 1 bit based on a single voltage threshold. ) NAND (Not AND) A Boolean logic operation that is true if any single input is false. Two-input NAND gates are often used as the sole logic element on gate array chips, because all Boolean operations can be created from NAND gates. See flash memory.  device, offers the high performance necessary for multimedia applications at a lower cost. Within feature-rich handsets, Mobile DiskOnChip can be used to store both the operating system (OS) and application code, as well as user data such as still pictures, video content, personal information manager (PIM (1) (Protocol Independent Multicast) A multicast routing protocol endorsed by the IETF. Used in conjunction with an existing unicast routing protocol, it comes in two flavors: Dense Mode (PIM-DM) is used when recipients in the target group are in a concentrated ) content, games and music.

About Renesas Technology's SH-Mobile

Renesas Technology's SH-Mobile is a flexible application accelerator that provides multimedia support for next-generation cellular phone communications. Unlike a traditional baseband CPU CPU
 in full central processing unit

Principal component of a digital computer, composed of a control unit, an instruction-decoding unit, and an arithmetic-logic unit.
 method that uses a single CPU to manage both signal and application processing, the SH-Mobile design approach uses a dual CPU architecture that dedicates one CPU to application execution in order to maximize communication performance. Built on Renesas' popular SuperH 32-bit RISC RISC
 in full Reduced Instruction Set Computing

Computer architecture that uses a limited number of instructions. RISC became popular in microprocessors in the 1980s.
 superscalar architecture, SH-Mobile devices offer compelling functionality such as the JPEG JPEG
 in full Joint Photographic Experts Group

Standard computer file format for storing graphic images in a compressed form for general use. JPEG images are compressed using a mathematical algorithm.
, MP3, acoustic echo canceller, AMR (1) (Adaptive Multi-Rate) A variable rate speech codec selected by the 3GPP for the 3G evolution of the GSM cellphone system (WCDMA). Using the Algebraic CELP (ACELP) compression technology, AMR provides toll quality sound at transmission rates from 4.75 to 12.  codec (1) (enCOder/DECoder) A hardware circuit that performs analog-to-digital conversion (ADC) and digital-to-analog (DAC) conversion. When analog signals are entered into a computer, cellphone or other device via a microphone or video source such as VHS tape or analog TV, , MPEG (Moving Pictures Experts Group) An ISO/ITU standard for compressing digital video. Pronounced "em-peg," it is the universal standard for digital terrestrial, cable and satellite TV, DVDs and digital video recorders (DVRs). 4 encode/decode and Java Virtual Machine A Java interpreter. The Java Virtual Machine (JVM) is software that converts the Java intermediate language (bytecode) into machine language and executes it. The original JVM came from the JavaSoft division of Sun.  capabilities that are essential for supporting the high-end multimedia applications of next-generation mobile phones. For more information about SH-Mobile, please visit www.renesas.com/eng/products/mpumcu/shmobile/index.html.

About SH-Mobile Consortium

SH-Mobile Consortium membership is comprised of LSI LSI: see integrated circuit.


(Large Scale Integration) Between 3,000 and 100,000 transistors on a chip. See SSI, MSI, VLSI and ULSI.
, IP providers, system integrators and software providers, all collaborating to create a unique mobile phone solution. The aim of the consortium is to provide support for hardware, software and mobile phone terminal developers, to support the growing SH-Mobile ecosystem. For more information, please visit www.renesas.com/eng/products/mpumcu/shmobile/consortium/index.html.

About Renesas Technology Corp.

Renesas Technology Corp. (www.renesas.com) designs and manufactures highly integrated semiconductor system solutions for mobile, automotive and PC/AV markets. Established on April 1, 2003, as a joint venture between Hitachi, Ltd. (TSE:6501)(NYSE:HIT) and Mitsubishi Electric Corporation (TSE:6503) and headquartered in Tokyo, Japan, Renesas Technology is one of the largest semiconductor companies in the world and the number one microcontroller supplier globally. Besides microcontrollers, Renesas Technology offers system-on-chip devices, Smart Card ICs, mixed-signal products, flash memories, SRAMs and more.

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 USB
 in full Universal Serial Bus

Type of serial bus that allows peripheral devices (disks, modems, printers, digitizers, data gloves, etc.) to be easily connected to a computer.
 (universal serial bus See USB.

(hardware, standard) Universal Serial Bus - (USB) An external peripheral interface standard for communication between a computer and external peripherals over an inexpensive cable using biserial transmission.
) flash drive market with its DiskOnKey product and the multimedia mobile handset market with its Mobile DiskOnChip products. For more information, please contact M-Systems at www.m-systems.com.

NOTE TO EDITORS: High-resolution photo images of M-Systems' products can be found on the Internet at www.m-sys.com/content/Corporate/Press/Photos.asp.

Solution Engine is the registered trademark of Hitachi ULSI (Ultra Large Scale Integration) More than one million transistors on a chip. See SSI, MSI, LSI and VLSI.  Systems Co., Ltd. SuperH is the trademark of Renesas Technology. TrueFFS, DiskOnChip, DiskOnKey and Fast Flash Disk are the registered trademarks of M-Systems. All other product or service names are the property of their respective owners.

This press release includes forward-looking statements as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and  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, risks related to: the effect of global economic conditions in general and conditions in the Company's 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; capacity and supply constraints, including dependence on flash component suppliers; changes in the Company's and its customers' inventory levels; timely product and technology development/upgrades and the ability to manage changes in market conditions as needed as needed prn. See prn order. ; market acceptance of new products and continuing product demand; the impact of competitive products and pricing on the Company's and its customers' products and markets; development, release and sales of new products by strategic suppliers and customers; development and growth of anticipated markets for the Company's and its customers' products; and other risk factors detailed in the Company's most recent annual report and/or in any of its other filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information in this release. Reference to the Company's website above does not constitute incorporation of any of the information thereon into this press release.
COPYRIGHT 2004 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Geographic Code:9JAPA
Date:Mar 16, 2004
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