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U3 Announces New Smart Drives from PNY Technologies and Adds Productivity, Multimedia and Entertainment Software to U3 Platform.

U3 Developer Community Surpasses 10,000 Downloads as Major Software Companies Develop U3 Smart Applications

NEW YORK -- U3[TM] LLC today announced that PNY Technologies[R] Inc. will offer a line of U3 smart drives under its AttachE[umlaut][R] and Mini AttachE[umlaut][R] brands. U3 also unveiled new software applications for U3 smart drives, adding well-known productivity, multimedia and entertainment titles to the more than 100 portable applications already available for the U3 platform. This month U3 achieved a milestone of 10,000 registered developers using the U3 Software Development Kit, which is provided at no charge to developers who create software for U3 smart drives.

DigitalLife attendees can visit U3's Booth No. 622 for personal demonstrations of U3 smart drives -- the tiny, lightweight and easy-to-use USB devices that let people carry not only their files but a multitude of useful Windows software programs, desktop preferences and PC settings, all for use on any PC. Users can safely launch their own documents, software and related settings directly from a U3 smart drive without having to download or install anything to the host computer itself. U3 smart drives are ideal for mobile professionals, students and anyone else that needs to access a personalized computing environment on multiple PCs.

"Our customers love the way their U3 smart drives make their computing lives easier and more portable. With a whole host of new U3 smart software now available, U3 smart drives are more convenient and more powerful than ever," said Kate Purmal, chief executive officer of U3. "The addition of PNY Technologies to our hardware licensees means that consumers will have an even broader selection of U3 smart drives to choose from. Now five of the top six North American drive manufacturers are shipping U3 smart drives in their USB flash drive product lines."

PNY Technologies is the eighteenth hardware vendor worldwide to partner with U3. It will introduce U3 smart drives under its AttachE[umlaut] and Mini AttachE[umlaut] brands, which feature 2 GB(1) and 1 GB(1) capacities, respectively. Like all U3 smart drives, the PNY drives will be compatible with any PC running Windows[R] 2000 or XP. They will be available from major consumer electronics retailers in early 2007.

Operating a U3 smart drive is easy. Consumers can simply plug a U3 smart drive into a PC's USB port and use the intuitive U3 Launchpad menu, which pops up on the computer desktop, as their gateway to a highly personalized computing experience. U3 smart drives make it possible to access popular software on any PC, whether installed on the PC or not -- including office productivity applications, photo management tools, Internet calling accounts, customized Web browsing, fully functional e-mail programs, portable games, digital music managers and much more. When the U3 smart drive is removed, the computer returns to normal and the user retains all personal information.

Consumers can select the "Download Programs" button on the U3 Launchpad to obtain new software for their U3 smart drives. They can also visit the online store U3 Software Central at www.software.u3.com to download U3 smart software. At DigitalLife U3 announced partnerships with several new software developers and the availability of a wide variety of new software on U3 Software Central:

* eMusic -- eMusic, the world's largest retailer of independent music and the world's second largest digital music service, has partnered with U3 to promote their service to users of U3 smart drives and the U3-enabled Zoom Player Mobile by Inmatrix.

* Research Triangle Software Inc. -- Research Triangle Software, a leading developer of portable security solutions, has announced that their CryptoLock encryption software is now available for U3 smart drives. The CryptoLock software allows users to encrypt and compress files they store on their U3 smart drives. CryptoLock is now available for download on U3 Software Central.

* StompSoft Inc. -- StompSoft Inc., a provider of award-winning backup, system utility and online security/privacy software, has released Portable Vault U3 Edition, an easy-to-use and highly secure data encryption application. StompSort Portable Vault U3 Edition is now available for download on U3 Software Central.

* Sun Microsystems Inc. -- U3 and Sun Microsystems have collaborated to create a smart, U3 portable version of StarOffice, Sun's full-featured office productivity suite. Generally recognized as the best universal alternative to Microsoft Office, StarOffice includes integrated word processing, PDF export, spreadsheet, presentation, drawing, and database capabilities, as well as superior Microsoft Office compatibility and conversion.

* Webaroo Inc. -- U3 and Webaroo, provider of "the Web to Go," will soon release a U3 smart version of Webaroo software that lets people save, browse and search Web content anytime - carrying and accessing their personal Web wherever they go. Webaroo users can peruse selected Web content stored on a U3 smart drive on any PC, without having to install any software, transfer files or connect to the Internet.

* Yahoo! Widget Engine 3.1 -- Yahoo!, a leading global Internet brand and one of the most trafficked Internet destinations worldwide, and U3 have worked together to make Yahoo! Widget Engine 3.1 available for U3 smart drives. Widgets are lightweight, downloadable applications that live directly on a user's desktop and perform a wide variety of tasks, such as checking for new e-mails, performing Internet searches, managing digital photos, updating a user's calendar, displaying the time and checking for Wi-Fi presence or strength. Now that consumers can carry Widgets on U3 smart drives, they can enjoy their favorite Widgets not only on their primary computer but on any PC.

U3 CEO Kate Purmal will deliver a presentation, "Meet the Next Generation of USB Flash Drives: the U3 Smart Drive," in the Digital Theater at 5 p.m. on Friday, October 13.

DigitalLife attendees should inquire at the U3 booth for details of the "BeSmart" contest, which offers a chance to win U3 smart drives and cash prizes up to $1,000.

U3 Smart Drives

U3 smart drives not only store files, they come pre-loaded with password protection, anti-virus software and other popular applications that can be launched on any PC running Windows 2000 or XP. Consumers can customize their smart drives by downloading additional U3 software titles, including office productivity, photo and video, Internet phone, portable Web browsers, e-mail clients, instant messaging and games.

About U3

U3 LLC of Redwood City, Calif., licenses an innovative USB smart drive platform to manufacturers who want to make U3 smart drives for consumers. Eighteen companies worldwide are making U3 smart drives and more than 10,000 software developers are creating U3 smart Windows applications. U3 is backed by USB flash drive market leaders msystems[TM] (NASDAQ:FLSH) and SanDisk[c] Corporation (NASDAQ:SNDK). For more information see www.U3.com.

U3 is a trademark of U3 LLC.

Sun, Sun Microsystems, and StarOffice are trademarks or registered trademarks of Sun Microsystems Inc. in the United States and other countries.

All other names are trademarks and/or registered trademarks of their respective owners.

(1)For flash media devices, 1 megabyte = 1 million bytes; I gigabyte = 1 billion bytes. Actual useable capacity may vary. Some of the listed capacity is used for formatting and other functions, and thus is not available for data storage.
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