M-Systems DiskOnChip Powers Samsung Set-Top Boxes to Yahoo! BB

6/25/2003 - M-Systems, (Nasdaq: FLSH), a leader in flash-based data storage products, announced that Samsung Electronics Co. Ltd. is using DiskOnChip as the local storage device within its SMT F240 set-top box (STB), which is being marketed throughout Japan by Yahoo! BB.

Currently in mass production, Samsung's Linux-based internet protocol (IP) SMT F240 is able to deliver a range of interactive services, including digital broadcasting, advanced electronic programming guides (EPGs), near video on demand (NVOD), video on demand (VOD), as well as Internet and e-mail. With 32 megabytes of local storage provided by M-Systems' DiskOnChip flash disk, upgrades to these features and other software can be accomplished remotely in a relatively simple fashion.

"In addition to its support for the remote upgrade capability within our set-top box, DiskOnChip provides outstanding security-enabling features," said Dr. Hee-Won Park, senior manager of set-top box development for Samsung. "The read and write protection found within DiskOnChip is the best available. It provides our customers and us with the assurance that software upgrades will be handled responsibly and that the set-top box will be tamper-proof and operate reliably for the subscriber."

Yahoo! BB, a high-speed telecommunications operator offering the fastest growing broadband network in Japan, has selected the SMT F240 as the STB within the world's first IP digital broadcasting network. Samsung's STBs are being installed in homes throughout the country and provide users with access to interactive video on demand and at least fifteen digital broadcasting channels twenty-four hours a day.

Samsung is contracted to deliver US$30 million worth of its SMT F240 IP STBs through 2003. According to Samsung, the future growth of IP digital broadcasting is forecasted to be huge. In addition to Japan, Samsung is negotiating IP STB export contracts with companies in Germany, Sweden and other countries.

"Advanced set-top boxes, such as the SMT F240 from Samsung, are revolutionizing the relationship between the consumer and service provider. Everyone benefits from the remote software upgrades and additional security features that these types of products can now offer," said Randall Yang, president of M-Systems Asia. "I am proud to see our DiskOnChip flash disk helping to make this possible."

About Samsung
Samsung Electronics Co. Ltd. is a global leader in semiconductor, telecommunication, and digital convergence technology. Samsung Electronics employs approximately 64,000 people in 89 offices in 47 countries. The company is the world's largest producer of memory chips, TFT-LCDs, CDMA mobile phones, monitors and VCRs. Samsung Electronics consists of four main business units: Digital Media Network, Device Solution Network, Telecommunication Network and Digital Appliance Network Businesses. For more information, please visit http://www.samsungelectronics.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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