Wincor Nixdorf and msystems(TM) Join Forces to Enhance Reliability of Point of Sale (POS) Platform.

mModule uDOC, msystems' Embedded Flash Disk Has Been Chosen by Wincor Nixdorf as the Solid State Storage Device for its BEETLE POS Family

MUNICH, Germany -- msystems (NASDAQ:FLSH), a leader in smart personal storage, and Wincor Nixdorf, the leading European manufacturer of programmable electronic point of sale (POS) systems, today announced that Wincor Nixdorf will offer their BEETLE POS family with msystems' flash disk, mModule uDOC, as its solid state storage solution.

This marks the first time that Wincor Nixdorf is offering support for an embedded flash disk in any of the company's POS systems. With over 30 years' experience in the retail sector, Wincor Nixdorf is committed to delivering high reliability in the solutions it provides to its customers, and pays particular attention to total cost of ownership (TCO).

"We know what is required in terms of system availability, data security and integrity, product continuity, and low operating costs," said marketing product manager of Wincor Nixdorf, Winfried Nolte. "We have confidently chosen msystems' mModule uDOC as our solid state offering after rigorous testing, including repeated transactions equivalent to 20 years in the field."

mModule uDOC's reliability is a result of msystems' industry proven, patented TrueFFS[R] flash file system, which enables a Mean Time Between Failure (MTBF) rate of over 4 million operating hours. mModule uDOC is fully supported as a plug-and-play solution by Microsoft[R] Windows[R] XP Embedded, Windows CE, WEPOS, Windows XP Pro and Linux operating system environments.

The steep decline in NAND flash prices is making it competitive with hard disk drives for adoption in the POS industry, while its higher reliability makes it even more attractive over conventional spinning magnetic media in the total cost of ownership (TCO) analysis. These cost considerations are opening opportunities for flash data storage in many new markets including POS, with a significant number of POS vendors choosing flash over hard disk drives. Wincor Nixdorf is now offering its BEETLE POS family customers the option of msystems' mModule uDOC for reliable storage.

"We are pleased to provide Wincor Nixdorf with the first embedded flash disk, our mModule uDOC, for its BEETLE POS system family," said Erez Lev, general manager of msystems, Europe. "Our vast experience in flash data storage enables us to provide Wincor Nixdorf the exceedingly high level of reliability and performance to which they are committed and that their customers have come to demand."

A BEETLE terminal from Wincor Nixdorf with msystems' mModule uDOC flash disk will be on display in msystems' booth #715, Hall A6 in Electronica 2006 held in Munich, Germany at the New Munich Trade Fair Center during November 14-17, 2006.

About Wincor Nixdorf

Wincor Nixdorf is one of the world's leading suppliers of IT solutions to the retail and banking industries. The company's extensive portfolio, consisting of hardware products, software, consulting, maintenance and other services, is aimed at reducing the cost and complexity of business processes while improving customer service. Wincor Nixdorf is the world's third largest supplier of POS systems and automated teller machines and the number one supplier of POS systems in Europe (source: Clarendon Report, April 2005). With 7,800 employees and net sales of [euro]1,948 million last fiscal year, Wincor Nixdorf operates in over 90 countries with manufacturing plants in Germany, China and Singapore. Worldwide headquarters are in Paderborn, Germany and North American headquarters are in Austin, Texas. For more information, visit www.wincor-nixdorf.com.

About msystems

msystems 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, msystems creates, develops, manufactures and markets smart personal storage solutions for a myriad of applications targeting high growth markets.

More information is available online at www.msystems.com. msystems. 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 msystems' 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 msystems' 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 msystems' 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 msystems' and its customers' products; and other risk factors detailed from time to time in msystems' filings with the Securities and Exchange Commission. msystems 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 msystems' website above does not constitute incorporation of any of the information thereon into this press release.