M-Systems' Flash Disk Used in PDA Made by China's Largest PC Maker

2/19/2003 - M-Systems (Nasdaq: FLSH), a leader in flash-based data storage products, announced that Legend Group Ltd. (HKSE: 992), the largest computer company in Asia outside of Japan, is using the Mobile DiskOnChip flash disk for local storage within its new personal digital assistant (PDA), the XP210.

Available now to customers within China, Legend's XP210 PDA is based on the Microsoft Pocket PC 2002 operating system (OS). In addition to PDA functionality, it can play music and movies and it also has a built-in game emulator that comes with a bundle of games.

Within Legend's PDA, M-Systems' Mobile DiskOnChip provides 32 megabytes of persistent, non-volatile memory for the storage of the operating system, games and other applications, contact information and user data. As a way to reduce component count, size and cost, M-Systems' flash disk is also being used as the boot device.

"We considered NOR flash for storage within the XP210 PDA, but M-Systems provided better support," said Lu Yan, general manager of handheld device business, Legend Group Ltd. "DiskOnChip was easy to integrate and gives us the flexibility of an easy capacity upgrade path. We look forward to working with M-Systems on upcoming PDA and smart phone products."

"By incorporating our flash disk into the XP210 PDA, Legend is doing what it takes to give their customers a superior product," said Clarence Choi, country manager of M-Systems China. "In addition to its impressive gaming, communication & PDA functions, the XP210 should also be recognized for its outstanding reliability and performance."

About Legend Computer System Ltd.
Legend Computer System Ltd (HKSE: 992) is the largest computer company in the People's Republic of China. Its own brand PC has been the country's best-selling PC since 1997 and had a market share of 31% as of Q4 2002. Legend also took the lead in the Asia Pacific market (excluding Japan) in the same quarter. Legend also distributes foreign brand IT products, provides systems integration services and manufactures motherboards. Recently, Legend has begun to actively develop its Internet-related and e-Commerce-related business. Legend was listed on the Hong Kong Stock Exchange in 1994 and is a constituent stock of the Hang Seng Index. Its American Depositary Receipts are also traded in the United States. More information about the Company can be found on the Internet at www.legend-holdings.com.

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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