msystems(TM) to Speak at Denali MemCon 2006; Company to share information about the latest NAND flash developments and insight gained in supplying memory solutions to the world's top mobile handset vendors.

SUNNYVALE, Calif. -- msystems (NASDAQ: FLSH), a leader in smart personal storage, today announced that company executives will speak at Denali MemCon, September 12-14, 2006, at the Santa Clara Convention Center.

Noam Kedem, vice president of marketing and business development at msystems will speak about "High density NAND in multimedia handsets" on Wednesday, September 13th at 12:00pm in the Flash Devices, Technologies and Roadmaps track.

Hiro Ino, vice president of marketing and business development for the mobile division at msystems will speak about "Advanced Flash Management Technology" on Thursday, September 14th at 2:30pm in the System on Chip (SoC) Deployment for Memory and Storage Systems track.

Through these presentations, msystems will share some of the insight gained through working with many of the world's leading companies. Building upon years of innovation and experience with embedded flash drives (EFDs) empowered by its patented TrueFFS(R) flash management software, msystems introduced the first NAND-based embedded solution to the mobile market in 2001, creating a whole new market category, which the company leads through an impressive list of "firsts," including: the first EFD for code and data storage; the first multi-level cell (MLC) NAND-based EFD; and, most recently, through its mDOC H3 product, which is the first bootable, plug-and-play, multiple source EFD.

The company's embedded flash drives are integrated within devices sold by six of the world's top seven mobile handset vendors. Proven in the field and enabling millions of phones to boot from EFDs, TrueFFS from msystems is a de-facto industry standard for flash management.

About Denali MemCon

Denali MemCon is the premier industry event addressing the business, technology, and system design strategies for semiconductor memory and storage. The MemCon event is held annually in San Jose and Tokyo and has been expanded to other cities including Austin, Boston, Munich, and Shanghai. MemCon is produced by Denali Software, and sponsored by leading companies in the semiconductor memory and storage industries. These events feature exclusive presentations from industry experts on topics ranging from memory device technology, product roadmaps, market outlooks, to design techniques and silicon implementation strategies for memory storage systems. To register to attend, visit: www.memcon.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.