M-Systems’ uDiskOnChip offers embedded market a USB 2.0 storage and boot solution for Microsoft Wind

Kfar Saba, Israel – 14 March 2005 - M-Systems (Nasdaq: FLSH) today announced that its uDiskOnChip USB 2.0 flash disk can now be used as a boot solution for embedded products running the Microsoft Windows XP Embedded operating system.

Demonstrations of uDiskOnChip booting Windows XP Embedded twice as fast as compact flash (*Environment: 300MB XPe SP2 image with Winlogon, Explorer Shell, FAT16, no EWF. Hardware: Lippert Thunderbird, Pentium-M 1.6GHz) were made at the Embedded Systems Conference in San Francisco this week.

"We introduced uDiskOnChip as the industry’s first highly-reliable, high-capacity, high-performance USB 2.0 device to support the unique demands of single board computers, thin clients, gaming, point of sale terminals and other embedded systems," said Amir Tirosh, general manager of M-Systems’ embedded division. "We’re now pleased to announce another ground-breaking achievement. uDiskOnChip not only boots the Microsoft Windows XP Embedded image, but does it quickly and securely."

"M-Systems’ uDiskOnChip USB 2.0 flash disk boot solution is an example of the innovative and flexible solutions that bring added value to our Windows XP Embedded customers," said Jane Gilson, director for the Mobile and Embedded Devices Division at Microsoft Corp. "Microsoft works closely with companies such as M-Systems to bring the best user experience to our embedded customers."

"Until recently, the embedded systems market was unable to take advantage of the inherent benefits of USB 2.0 flash storage," said Sean Liming, managing director of SJJ Embedded Micro Solutions and the author of Windows XP Embedded Advanced and Windows XP Embedded Supplemental Toolkit. "Today, M-Systems, in addition to introducing USB 2.0 storage to embedded products, is showing the world's first and only USB 2.0 boot solution for Microsoft Windows XP Embedded."


uDiskOnChip features and benefits

uDiskOnChip draws on the best of M-Systems’ flash expertise and innovative technology to deliver the following added value benefit in a single device:

• High Performance: M-Systems Fly-By acceleration algorithms maximize the capabilities of the USB 2.0 high-speed interface. This optimization enables read rates as high as 20 MB/sec, resulting in the fasted OS boot and application loading rates. Write rates reach 10 MB/sec, enabling faster file caching.

• High Data Reliability: Data reliability and extended lifespan are achieved using M-Systems’ industry-standard TrueFFS flash-management algorithms, which are built into uDiskOnChip’s firmware.

• Strong Security and Encryption: Built-in security and cryptography are implemented in hardware using M-Systems’ SuperMAP secure-chip expertise, enabling a variety of security-related applications for systems designer.

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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.