M-Systems Expands with Celestica Global Manufacturing Network

11/5/2003 - Continuing its leadership in the USB flash drive market with its Smart DiskOnKey platform, M-Systems' (NASDAQ: FLSH) DiskOnKey solidifies its manufacturing capabilities by forming a relationship with Celestica, a world leader in electronics manufacturing services (EMS). Through its work with Celestica, M-Systems supports the increasing sales of Smart DiskOnKey based devices and expands the Company's worldwide manufacturing facilities meeting demands for larger orders and quicker distribution.

"Celestica's tier one manufacturing capabilities and global manufacturing network allows us to meet the explosive demand for USB flash drives and provide us with the opportunity to fulfill our customers' orders sooner," said Ariel Rosenfeld, vice president at M-Systems and co-manager of its DiskOnKey division. "Announcing Celestica as an EMS partner is another important milestone in M-Systems' sharp growth in the USB flash drive market."

By selecting Celestica as a DiskOnKey manufacturer it reaffirms M-Systems' leadership within the industry and its ability to offer global distribution and manufacturing capabilities.

"We are delighted to be working with M-Systems to manufacture and assemble the DiskOnKey devices," said Jeff Canavor, vice president of sales and marketing for Celestica. "Celestica's low-cost volume manufacturing, faster time-to-market, and engineering excellence will enable M-Systems to deliver innovative and cost-effective products to its customers worldwide."

About M-Systems' Smart DiskOnKey Platform
The Smart DiskOnKey platform is comprised of unique patented solutions offering top tier partners the option to choose from M-Systems' existing product line or to design their own form factor while still using M-Systems' internal architecture. The award-winning DiskOnKey product line offers the fastest data transfer speeds combined with trusted quality, reliability, ease-of-use and assurance that information will be secured. Furthermore M-Systems' Smart DiskOnKey platform offers partners unparalleled computing capability with the flexibility to extend the use of the device beyond simple storage to meet any variety of requirements. M-Systems' patented flash management software, True Flash File System (TrueFFS)®, is an integral component to the Smart DiskOnKey platform. TrueFFS transparently provides full flash media management offering unsurpassed data integrity and assurance.

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 www.m-sys.com.

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