M-Systems' Flash Disk Products Designed Onto Development Platforms for Au1 Core Products from AMD

7/31/2002 - M-Systems (Nasdaq: FLSH), a leader in flash disk data storage products, today announced that DiskOnChip Millennium Plus has been designed onto the AlchemyTM Pb1500TM and the newly introduced Alchemy Pb1100TM development boards from AMD (NYSE: AMD). With up to 64MB of persistent storage for the operating system, user data and applications, including advanced protection and security features, one time programming (OTP) areas, and a 16-bit data interface, the DiskOnChip Millennium Plus is the fastest, most innovative and cost effective flash disk solution today.

The Alchemy Pb1500 and Pb1100 development boards from AMD provide examples of hardware systems design using the high performance, low power Alchemy Au1500TM and Alchemy Au1100TM processors from AMD and are highly versatile systems that serve multiple purposes for chip evaluation and software development. The Au1100 is targeted at the Mobile Information Appliances (IAs). These IAs include web pads, telematics, PDAs and multimedia handheld computing devices.

"The development of these platforms between the two companies is designed to offer our customers the latest in flash disk technology, operating system support and AMD's MIPS-basedTM processor performance to address the needs of the mobile market," said Chuck Schouw, president and CEO, M-Systems Inc.

"AMD provides advanced, highly integrated MIPS technology-based processors for the non-PC Internet appliance market - both wired and wireless," said Yuval Sofer, associate vice president, business development, M-Systems. "By offering compelling performance for power consumption under 1 watt, AMD continues to generate advanced designs for this market and complements our expanding work in this area."

"Working together with M-Systems, we are advancing board development for our customers, fostering growth of the MIPS ecosystem, and driving to market innovative products," said Phil Pompa, vice president of marketing, personal connectivity solutions group, AMD. "M-Systems' DiskOnChip Millennium plus is an innovative data storage solution, specifically designed to meet the demands of our target market and customers, and port seamlessly to our board, thus expediting time to market."

Evaluation Board Availability:
Samples and evaluation boards for the Au1000TM, Au1500TM and Au1100TM products by AMD are available for designers. Please visit www.alchemysemi.com for more 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®, DiskOnKey® and Fast Flash Disk (FFD) product families. For more information, please contact M-Systems at www.m-sys.com

All company and product names mentioned may be trademarks or registered trademarks of their respective holders and are used for identification purposes only. AMD, the AMD Arrow logo, and combinations thereof, and Alchemy, Au1000, Au1100, Au1500, Pb1100 and Pb1500 are trademarks of Advanced Micro Devices, Inc.

The matters discussed in this news release include forward-looking statements that are subject to risks and uncertainties that may cause actual results to vary significantly. These risks include market and competitive factors, and other risks described in the Company's most recent annual report and/or in any of its other filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information in this release. Reference to the Company's website above does not constitute incorporation of any of the information thereon into this press release.

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