M-Systems' DiskOnKey Technology Expands Relationship with Major Computer Manufacturer

2/19/2003 - M-Systems (Nasdaq: FLSH), a leader in flash-based data storage products, announced IBM has implemented USB 2.0 full-speed DiskOnKey Technology into its Memory Key product family. IBM will offer its uniquely designed 64 and 256MB "USB 2.0 Memory Key" through its product upgrades Web site (www.ibm.com). The newly released products will be accompanied with a full set of applications, including the KeySafe security application, MyKey personalization console and boot utility. The product also implements M-Systems' advanced security architecture offering higher levels of encryption ensuring the data is protected.

"The DiskOnKey Technology product line has continued to demonstrate its flexibility and computing power garnering partnerships with the industry's largest computer and consumer electronic manufacturers," said Blaine Phelps, worldwide marketing manager, M-Systems' DiskOnKey Business Unit. "M-Systems has demonstrated its market leadership by consistently providing innovation and keeping DiskOnKey Technology ahead of competitors while simultaneously addressing customers' needs in this new and evolving market."

About M-Systems' DiskOnKey Technology
DiskOnKey Technology is a unique patented solution offering OEMs and 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 trusted quality, reliability and assurance that information will be secured. M-Systems substantiates this claim by submitting the DiskOnKey and DiskOnKey Pro to rigorous testing for reliability and durability, earning Microsoft's Windows Hardware Quality Testing Lab (WHQL) certification as well as receiving the certified-USB logo set by the USB-IF.

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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