M-Systems' DiskOnKeyTM Now Available with 512MB Storage Capacity

6/27/2002 - M-Systems (Nasdaq: FLSH), a leader in flash disk data storage products, announced the 512MB capacity DiskOnKey personal storage device. The latest offering by the Company allows users to easily save video, audio, graphic and other files without the need for external readers by plugging the DiskOnKey into the computer's USB port. Designed with M-Systems' award-winning form factor, the 512MB is identified with a unique translucent green color on the neck. Continuing with M-Systems' tradition of delivering computing power, the latest device also offers the Company's renowned driverless capabilities, the KeySafe security application, Winlogon capabilities and automatic boot functions.

The 512MB DiskOnKey is ideal for any number of users, including graphic designers, photographers, MIS personnel, educators and others requiring an easy method to save, access and share information. The increased capacity DiskOnKey allows users to save over 355 diskettes worth of information, 10-minutes worth of compressed video, 128 4-minute songs, e-books, and help files for MIS personnel. The 512MB DiskOnKey is also ideal for users with new legacy-free systems allowing for extra storage space and the means to easily share files.

"The latest DiskOnKey offers a unique solution that provides freedom, flexibility and the quality of the only device in the category to carry Microsoft and USB certification throughout the entire product line," said Ohad Shvueli, director of worldwide sales for M-Systems. "DiskOnKey is primarily a storage device, but with imagination, any number of uses are available for the device, from a floppy disk replacement to a tool that can enable the entire enterprise."

M-Systems' flash data storage technology enables the DiskOnKey to be smaller than the size of your palm while offering an onboard CPU for driverless operation connecting to a computer's universal serial bus (USB) port. The DiskOnKey has undergone rigorous testing for reliability and durability, securing certification by Microsoft's Windows Hardware Quality Testing Lab (WHQL), as well as being the only product in the category approved to carry the certified-USB logo set by the USB Implementers Forum. Its unique lightweight design and ease-of-use makes the DiskOnKey an ideal floppy disk replacement enabling users to easily transfer data between their computers at home and/or work, and to their pocket, briefcase or keychain. The DiskOnKey has been honored with numerous industry accolades including CNET's Editors' Choice Award, BusinessWeek's Industrial Design Award and listed in PC Magazine and Computer Shopper as one of the top 100 products of the past year, among others.

Pricing and Availability
Manufacturers suggested retail prices (MSRP) for the 8, 16, 32, 64, 128, 256 and 512MB DiskOnKey are $29.99, $49.99, $79.99, $99.99, $149.99, $249.99 and $499.99, respectively. The DiskOnKey is currently available through major partners including Apple, Compaq, Dell and Targus. Please visit DiskOnKey on the Internet at www.diskonkey.com for additional information.

About M-Systems
M-Systems (Nasdaq: FLSH) is a leader and innovator of flash-based data storage products known as flash disks. M-Systems' flash disks provide the functionality of a mechanical hard drive in a silicon chip. M-Systems' products are based on its patented TrueFFS® technology and target applications in a vast array of markets, including connected devices, mobile and telecom. M-Systems' products include the DiskOnChip®, DiskOnKeyTM and Fast Flash Disk (FFD) product families. For more information, please contact M-Systems at www.m-sys.com

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