M-Systems Partners with Memorex to Market USB Flash Drives

12/9/2004 - M-Systems (Nasdaq: FLSH), the leading developer of USB flash drive innovation, and Memorex Products, Inc., the market leader in digital media and media accessories, have joined forces to provide consumers with the latest USB flash drive storage solutions. The relationship brings together M-Systems' flash innovation and intellectual property with Memorex's legendary brand name and sales and marketing expertise, allowing Memorex to offer unique USB flash-based portable storage solutions to the market.

"We are pleased to enter into this partnership with Memorex and to once again be recognized for our renowned USB flash drive heritage," said Blaine Phelps, worldwide marketing manager for M-Systems' DiskOnKey®. "Consumers continually look to Memorex for the latest digital storage products and this partnership complements Memorex's existing digital media and computer accessory offerings."

Memorex, known for its high-quality and consumer-friendly products, has led the digital portable storage market in the U.S. for five consecutive years. Memorex's optical storage products range from the company's popular line of music CD-Rs to their award-winning DVD recorders. In the USB flash drive market; Memorex is rapidly solidifying its reputation as a provider of practical, high-quality products that are highly portable, ergonomically engineered, and very affordable.

"The USB flash drive market has grown in leaps and bounds in the past 12 months and it is expected to double in size next year," said Allen H. Gharapetian, vice president of marketing and product development at Memorex. "We are determined to reinforce our existing USB flash drive line-up with new and innovative products that are designed and developed jointly with M-Systems, to assume a leadership role in the market, and to offer our consumers highly reliable, powerful, and affordable solutions."

Memorex is currently marketing USB flash drives, in capacities ranging from 128MB to 2GB, through top retailers and distribution in U.S. and abroad.

Is it live or is it Memorex?
Memorex Products, Inc. is the industry sales and marketing leader of digital media and media accessories. Since the early 1970s, Memorex has been one of the most widely recognized and respected names in the consumer electronics industry. Today, it is an influential brand in CD and DVD media, optical drives, USB flash drives and computer peripherals, such as keyboards and mice. Memorex is headquartered in Cerritos, Calif. For more information on Memorex Products, Inc. or its products, please call 562-653-2800, or visit the company's Web site at www.memorex.com.

About M-Systems' Smart DiskOnKey Platform
The Smart DiskOnKey platform offers unprecedented flexibility and ease-of-use to develop hardware specific applications along with the capabilities to implement software applications developed by third-party developers. Combined with the award-winning DiskOnKey product line, the Smart DiskOnKey platform offers trusted quality, reliability, ease-of-use, extreme security, and the industry's leading product warranty.

About M-Systems
M-Systems designs, develops and markets innovative flash data storage solutions for digital consumer electronics markets. M-Systems primarily targets two fast-growing digital consumer electronics markets: the USB (universal serial bus) flash drive market with its DiskOnKey product and the multimedia mobile handset market with its Mobile DiskOnChip® products. For more information, please contact M-Systems at www.m-systems.com.

Memorex and the Memorex logo are trademarks of Memorex International Inc.

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