M-Systems’ DiskOnChip H-Series products set a new capacity benchmark for Palm-powered multimedia sma

M-Systems’ DiskOnChip H-Series products set a new capacity benchmark for Palm-powered multimedia smart mobile devices

Integration of software support for MLC NAND-based DiskOnChip makes the ideal combination of capacity, low cost and high performance

CTIA WIRELESS, New Orleans, LA – 14 March 2005 - M-Systems (NASDAQ: FLSH), an innovator of flash-based data storage products, today announced plans to collaborate with PalmSource to provide Palm OS support for its 2 gigabyte MLC NAND-based DiskOnChip H-series storage solution, setting a new capacity benchmark for the embedded flash drive category. M-Systems’ H-Series flash disk products, slated this year to range in size up to 2 gigabytes, are multi-level cell (MLC) NAND-based storage solutions designed specifically for music and video handsets.

As a partner in the Palm OS Ready (POSR) program, M-Systems offers Palm OS licensees flash-based memory storage solutions designed to speed time-to-market and lower device costs of Palm Powered smart mobile devices. Several Palm Powered devices leverage M-Systems’ advanced storage technology including the Xplore M28 smartphone from GSPDA, the Treo 650 smartphone and Tungsten T5 handheld from palmOne, and the QDA 700 smartphone from Qool Labs. DiskOnChip is the first NAND solution used in Palm Powered devices available on the market today.

"PalmSource continues to work with M-Systems because of its ability to deliver cost-effective storage technologies, such as DiskOnChip, along with a reliable and mature flash file system," said Charlie Tritschler, vice president of product marketing for PalmSource. "We believe M-Systems’ latest flash disk products will provide Palm OS licensees with an excellent storage solution for the development of next-generation Palm Powered phones that deliver a superior multimedia user experience."

M-Systems plans to offer TrueFFS software support for DiskOnChip H-series products for existing and future release of the Palm operating system. TrueFFS, M-Systems’ patented flash management software, provides the operating system (OS) with full block device (hard drive) functionality so that the DiskOnChip flash disk appears to the OS and file system as a standard disk drive. At the same time, it transparently provides full flash media management.

"PalmSource’s plans to integrate support for our newest, high capacity products validates DiskOnChip’s maturity and cost advantages over alternatives and provides users of Palm Powered smart mobile devices with a fast track to cost-effective multiple-gigabyte capacities, which are necessary in multimedia devices today," said David Tolub, general manager of M-Systems’ mobile division.

Combining 70 or 90 nanometer MLC NAND with other advanced technologies, DiskOnChip H-series products provide abundant, reliable, high-performance storage capacity to enable mobile entertainment at an unmatched cost structure. Currently, six out of seven tier-one handset manufacturers have integrated a DiskOnChip flash disk from M-Systems within their products.

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About M-Systems

M-Systems (NASDAQ: FLSH) 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 product and the multimedia mobile handset market with its DiskOnChip products. For more information, please contact M-Systems at: www.m-systems.com.