M-Systems' Mobile DiskOnChip Powers MiTAC Mio 8390 Feature Phone

3/23/2004 - M-Systems (Nasdaq: FLSH) revealed that its Mobile DiskOnChip® flash disk is the on-board multimedia memory solution within the Mio 8390 feature phone from MiTAC International Corp (TSE: 2315).

The tri-band Mio 8390 is based on the Microsoft WindowsTM Mobile 2003 software for smartphones operating system (OS) and supports GSM as well as GPRS 900, 1800, and 1900 MHz, making it compatible with cellular networks virtually anywhere in the world. With high-performance on-board multimedia memory provided by Mobile DiskOnChip, MiTAC is able to integrate the Internet, entertainment, audiovisual media playback, digital photography, audio recording, personal information management, and e-mail into a mobile phone with a large high-resolution (260,000 color TFT-LCD) color screen.

"Mobile DiskOnChip's high performance, low power consumption and ability to ensure data integrity contribute to user satisfaction more than any other memory solution," said Samuel Wang, general manager of MiTAC's Mobile Communication Product Business Unit (MBU). "DiskOnChip, now a part of many of the leading handsets and PDAs in the industry, is a proven, cost-effective on-board multimedia memory solution and a natural choice for our mobile devices."

Mobile DiskOnChip G3 was selected by EDN, the premier design magazine of the electronics industry, as one of the top 100 products of 2003. Currently, four out of the five leading handset manufacturers have chosen to integrate high-capacity, high-density Mobile DiskOnChip within their products. Additionally, leading personal data assistant (PDA) manufacturers incorporate Mobile DiskOnChip to support the newest applications and functionality.

"MiTAC is a major player in the industry and a leader in developing impressive feature phones that combine the best technologies available," said David Tolub, vice president and co-manager of M-Systems' DiskOnChip business unit. "Within its extremely small size, NAND-based Mobile DiskOnChip delivers high storage capacity and even more efficiency to the Mio 8390."

About the Mobile DiskOnChip Flash Disk from M-Systems
Mobile DiskOnChip offers a range of high-capacity, easy-to-integrate on-board multimedia memory solutions, optimized for the needs of feature-rich, data-centric mobile handsets and PDAs. It is based on NAND flash technology and an ultra-thin controller, delivering high reliability and performance.

Mobile DiskOnChip provides up to 1Gbit of on-board storage packed in a small 9x12mm or 7x10mm FBGA package. A NOR-like interface and robust TrueFFS®-based software enable fast and easy hardware and software integration. In addition, a built-in XIP boot block enables it to completely replace NOR Flash, to further reduce total memory cost.

About MiTAC International Corporation
MiTAC International Corporation was founded in 1982 as a developer and manufacturer of small form-factor desktop PCs, servers, workstations, and data storage equipments. The company has gradually developed into a new business division - Mobile Communication Business Unit to serve as focal points for its development efforts in wireless communication technology application and networking solutions. Its Mio product line offers a complete selection of ultimate cost/performance Pocket PC & Smartphone, aimed to satisfy the demands of the high lifestyle mobile phone and mobile commerce users. With relentless efforts devoted to R&D and vertically integrated manufacturing capability, MiTAC's Mio Pocket PC is well recognized as the de facto # 2 Pocket PC sold in the Great China area. Foreseeing the efficiencies made possible by the growth of wireless communication, MiTAC has made further progress in positioning itself as a major networking solution provider and a leading supplier in wireless communication devices. MiTAC International Corp. has established over twenty operational centers around the world, and in 1990 went public with its shares on the Taiwan Stock Exchange. Please visit www.mitac.com & www.justmio.com for more information.

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.

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