FLSH M Systems Flash Disk

msystems (NASDAQ:FLSH), a leader in smart personal storage, is launching mTrust into Europe. mTrust is a complete enterprise solution that turns USB flash drives into corporate assets that enhance employee productivity and flexibility under strict IT control. mTrust is designed to secure, control and monitor data carried on portable storage devices - inside or outside the network. It ensures that employees store information only on centrally deployed and managed secure 'mTrust ready' USB flash drives and controls the use of other personal devices from CD/DVD drives to MP3 players and smart phones over various interfaces including USB, Bluetooth, IR and Wi-Fi. mTrust is now available across Europe through msystems distribution partners. "mTrust is a system-oriented solution to enable the IT department to deliver the productivity benefits of portable storage devices while protecting enterprise information," said Nimrod Reichenberg, director of marketing for enterprise solutions at msystems. "Our new European distribution partners, including Avanquest and Global Secure Systems in the UK, will help msystems deliver the benefits of secured personal storage to European companies and help prevent further security breaches." mTrust comprises three components. The first is the mTrust Ready USB flash drives (UFDs) with hardware encryption and tamper-proof security. mTrust Ready UFDs are used in conjunction with mTrust Shield software which allows organizations to create, manage and audit centralized policies to authorize trusted storage devices to access network resources, while limiting the use of other personal devices and interfaces. The third component is mTrust Manager, an enterprise management system for centrally deploying, tracking, managing and auditing the activity of information stored on mTrust Ready UFDs, even when it leaves the network. mTrust Manager also remotely manages passwords, backs up information, enforces device usage policy and even remotely disables lost or stolen drives. "More and more employees are bringing their personal storage devices into the workplace. This has created a widening gap in corporate IT security," according to Chris Thompson, Managing Director at Avanquest, a UK-based European mTrust reseller. "For our enterprise security customers, mTrust is a comprehensive, system-oriented solution that fills this critical gap." In the US, leading organizations in the financial, healthcare and government sectors, including Fortune 500 financial companies, have already successfully implemented and deployed mTrust. In Europe, mTrust is already gaining momentum. One of Europe's largest insurance groups, with over 30 million customers across the continent, is already using the mTrust solution to securely mobilize sensitive data. More information about mTrust and mTrust resellers is available online at www.msystems.com/mtrust. Additionally, mTrust will be featured at the RSA Conference Europe 2006 in Nice, France, October 23-25, 2006. About msystems msystems has been transforming raw flash material into smarter storage solutions since 1989. From embedded flash drives deployed in millions of mobile handsets to U3 USB smart drives designed for leading global brands, msystems creates, develops, manufactures and markets smart personal storage solutions for a myriad of applications targeting high growth markets. More information is available online at www.msystems.com. msystems. made smarter. All company and product names mentioned may be trademarks or registered trademarks of their respective holders and are used for identification purposes only. This press release includes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements, as they are subject to various risks and uncertainties which may cause actual results to vary significantly. These risks include, but are not limited to: the effect of global economic conditions in general and conditions in msystems' industry and target markets in particular, shifts in supply and demand, market acceptance, the impact of competitive products and pricing, product development, commercialization and technological difficulties, and capacity and supply constraints including dependence on flash component suppliers; changes in msystems' and its customers' inventory levels and inventory valuations; timely product and technology development/upgrades and the ability to manage changes in market conditions as needed; market acceptance of new products and continuing product demand; the impact of competitive products and pricing on msystems' and its customers' products and markets; the development, release and sale of new products by strategic suppliers and customers; the development and growth of anticipated markets for msystems' and its customers' products; and other risk factors detailed from time to time in msystems' filings with the Securities and Exchange Commission. msystems assumes no obligation to update the information in this press release and disclaims any obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements. Reference to msystems' website above does not constitute incorporation of any of the information thereon into this press release.