AMD and M-Systems Expand Strategic Agreement to Provide More Powerful Customer-Focused Solutions

1/14/2003 - AMD (NYSE: AMD) and M-Systems (Nasdaq: FLSH) announced an expanded agreement to jointly develop a customer-specific suite of hardware and software solutions for the rapidly growing mobile data storage market. In this market, consumers are demanding a variety of increasingly sophisticated products such as cell phones or personal digital assistants (PDAs) capable of supporting multimedia applications enabled by increasingly higher bandwidth networks. These compact wireless products require intelligent multi-chip-package (MCP) solutions that efficiently combine both code storage-i.e., operating system software that tells the device how to function-with additional data storage capabilities to store video, MP3, or document files, among others. The collaboration, designed to leverage the power of both companies' world-class technologies, will focus on developing powerful, integrated product solutions for this expanding market segment.

Building on the original collaboration announced in May 2001, the newly expanded agreement includes three new categories of customer-focused solutions. Under the terms of the new agreement, AMD and M-Systems plan to jointly develop MCP product solutions consisting of AMD's industry-leading NOR Flash technology for code storage and M-Systems' proven DiskOnChip data storage technology. The two companies also plan to collaborate on a broad set of new software solutions utilizing M-Systems' expertise to complement AMD's existing software product offerings. Additionally, AMD and M-Systems plan to focus on developing future solutions based on next-generation Flash technologies, including enhanced DiskOnChip products designed to provide world-class performance, cost, and reliability in the mobile data storage segment.

"AMD's expanded collaboration with M-Systems is designed to provide customers a total memory solution composed of 'best-of-breed' components in a single MCP package," said Bertrand Cambou, group vice president, AMD Memory Group. "AMD Flash memory and M-Systems' DiskOnChip technology are recognized as leaders in performance and reliability. Combined in a MCP and supported by AMD's broad software suite, AMD and M-Systems together can provide products that give our customers powerful solutions and easy product integration."

"This exciting new chapter in our collaboration significantly expands our existing agreement," said Dov Moran, president and chief executive officer of M-Systems. "By combining our strengths to address the trend in the mobile market toward MCP solutions, we are providing and will continue to provide the most suitable solution to our potential customers. We are proud to deepen our partnership with AMD, a company that has a tremendous reputation for delivering extremely reliable Flash memory solutions and innovating with exciting new Flash technology."

About M-Systems' DiskOnChip Technology
DiskOnChip is a highly reliable, easy-to-integrate Flash disk architecture that offers the most cost-effective solution for local data and code storage. It addresses the ever-increasing storage demands of smart phones and PDAs, enabling data to reside locally on the handset securely and reliably.

DiskOnChip Flash disks provide abundant internal memory, super-fast application speeds, fail-safe reliability and enhanced security features for superior delivery of advanced business, entertainment and personalized services and applications such as: advanced email and enterprise applications; multimedia messaging; music; games; movie clips; icons, ring tones and the like.

DiskOnChip is available in various form factors (BGA, TSOP, and DIP) and in a wide range of capacities ranging from 8MBytes (64Mbit) up to 1Gbytes (8Gbit).

More information about M-Systems' DiskOnChip technology can be found on the Internet at

About AMD Flash Memory Devices
AMD's technology is employed by one of the world's largest producers of Flash memory devices, Fujitsu AMD Semiconductor Ltd. (FASL). AMD Flash memory products encompass a broad spectrum of densities and features to support a wide range of markets. AMD Flash memory customers represent leaders in the automotive, networking, telecommunications, and handheld mobile terminal markets. AMD offers many Flash memory products, such as the innovative MirrorBitTM architecture; award-winning simultaneous read-write (SRW) product family; super low voltage 1.8V Flash memory devices; and burst- and page-mode devices. AMD developed the robust Known Good Die (KGD) program and the patented negative gate erase technology, and developed highly reliable Fine-pitch Ball Grid Array packaging.

AMD's Flash memory products have received numerous customer service, quality and technology awards. Cisco Systems, Nortel Networks, Samsung, the Bosch Group, and Volkswagen have all awarded AMD their top supplier awards.

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 (FFDTM) product families. For more information, please contact M-Systems at

About AMD
AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets with manufacturing facilities in the United States, Europe, Japan, and Asia. AMD, a Fortune 500 and Standard & Poor's 500 company, produces microprocessors, Flash memory devices, and support circuitry for communications and networking applications. Founded in 1969, AMD is based in Sunnyvale. (NYSE: AMD).

AMD, the AMD Arrow logo, and combinations thereof, and MirrorBit are trademarks of Advanced Micro Devices, Inc.

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