M-Systems, Apacer Form Partnership to Drive USB Drive Market

5/21/2003 - M-Systems (Nasdaq: FLSH), a leader in flash disk data storage products, announced an agreement with Apacer, the innovative digital storage provider. The new deal with M-Systems will place Apacer's uniquely designed Handy Steno 1.1 devices through Apacer's extensive retail and OEM sales channels.

"The USB Drive market is growing at a phenomenal rate," said Lawrence Lo, vice president sales and marketing of Apacer. "The partnership with M-Systems combines our channel expertise with their renowned USB Drive leadership creating a synergetic and profitable marketing opportunity for both parties."

"As a market leader in their own right, Apacer values the importance of licensing intellectual property from market leaders such as M-Systems for their devices," said Blaine Phelps, director of worldwide marketing, M-Systems' DiskOnKey Business Unit. "This alliance will allow both companies to work together in developing the category ultimately benefiting consumers and partners as the USB Drive category continues to proliferate."

About Apacer
Apacer has dedicated itself to digital storage applications and service. Aiming to accelerate the adoption of digital technology throughout modern life, Apacer has focused on integrating core software and hardware technology with innovative design engineering to develop a complete series of IT and IA (information appliance) digital storage products, such as digital media copiers, USB flash drives, card readers and flash memory cards. Please visit www.apacer.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 (FFDTM) product families. For more information, please contact M-Systems at www.m-sys.com.

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