FLSH M Systems Flash Disk

msystems (NASDAQ: FLSH), a leader in smart personal storage, and Sagem Communication (SAFRAN Group) today announced that the SAGEM my700X multimedia mobile phone is able to provide one of the highest storage capacities: 3-gigabytes (GB) of flash-based memory. The large amount of solid-state mobile storage in the SAGEM my700X is made possible through the inclusion of msystems� 1GB MegaSIM card along with a slot able to contain a mini SD card up to 2GB. By providing abundant available storage for multimedia files, this unique combination of MegaSIM and SD card allows the user to benefit even more with MegaSIM as a secure platform for the launch of new services and applications. Combining state-of-the-art, high capacity flash memory technology, independent processing power and advanced cryptographic features, MegaSIM cards provide secure storage capacity for content and applications within a regular, familiar SIM card package. The SAGEM my700X is a �must have� phone for those who are passionate about music and high tech features. It has all the qualities of new generation mobile phones: the possibility of listening to music or FM radio; a 1.3M pixel camera; the EDGE technology � plus a very fashionable design. �Through the combination of memory media within their phone, Sagem Communication is providing mobile network operators and subscribers with a high level of flexibility as well as a mobile platform to enable new and advanced services,� said Eytan Pisetzky, vice president of marketing for the Mobile Network Operators division at msystems. �We are very happy to collaborate on MegaSIM-supporting phones with Sagem, a leading handset provider and an important player in the industry. By including msystems� MegaSIM card in the SAGEM my700X, MNOs have the ability to utilize up to 1GB of secured memory that is directly linked to the SIM card, enabling advanced m-commerce applications as well as convenient storage for photos, video clips, music and other files.� The SAGEM my700X multimedia mobile phone with msystems� 1GB MegaSIM card will be demonstrated during CARTES 2006, 7-9 November, in booth #4K 026, where msystems executives will be on hand to present the Company�s latest products and technological achievements. More information about the conference is available online at www.cartes.com/en/2006/index.htm. About Sagem Communication Sagem Communication (SAFRAN Group) is a major player in the mobile and broadband communication industries that has acquired strong worldwide positions through constant technological innovation. SAGEM produces particularly outstanding products in the following business areas: mobile phones, printing terminals, residential terminals, networks, electronic metering, among others. Visit www.sagem.com and www.safran-group.com to find out more. 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. msystems (NASDAQ: FLSH), a leader in smart personal storage, and Sagem Communication (SAFRAN Group) today announced that the SAGEM my700X multimedia mobile phone is able to provide one of the highest storage capacities: 3-gigabytes (GB) of flash-based memory. The large amount of solid-state mobile storage in the SAGEM my700X is made possible through the inclusion of msystems' 1GB MegaSIM card along with a slot able to contain a mini SD card up to 2GB. By providing abundant available storage for multimedia files, this unique combination of MegaSIM and SD card allows the user to benefit even more with MegaSIM as a secure platform for the launch of new services and applications. Combining state-of-the-art, high capacity flash memory technology, independent processing power and advanced cryptographic features, MegaSIM cards provide secure storage capacity for content and applications within a regular, familiar SIM card package. The SAGEM my700X is a "must have" phone for those who are passionate about music and high tech features. It has all the qualities of new generation mobile phones: the possibility of listening to music or FM radio; a 1.3M pixel camera; the EDGE technology - plus a very fashionable design. "Through the combination of memory media within their phone, Sagem Communication is providing mobile network operators and subscribers with a high level of flexibility as well as a mobile platform to enable new and advanced services," said Eytan Pisetzky, vice president of marketing for the Mobile Network Operators division at msystems. "We are very happy to collaborate on MegaSIM-supporting phones with Sagem, a leading handset provider and an important player in the industry. By including msystems' MegaSIM card in the SAGEM my700X, MNOs have the ability to utilize up to 1GB of secured memory that is directly linked to the SIM card, enabling advanced m-commerce applications as well as convenient storage for photos, video clips, music and other files." The SAGEM my700X multimedia mobile phone with msystems' 1GB MegaSIM card will be demonstrated during CARTES 2006, 7-9 November, in booth #4K 026, where msystems executives will be on hand to present the Company's latest products and technological achievements. More information about the conference is available online at www.cartes.com/en/2006/index.htm. About Sagem Communication Sagem Communication (SAFRAN Group) is a major player in the mobile and broadband communication industries that has acquired strong worldwide positions through constant technological innovation. SAGEM produces particularly outstanding products in the following business areas: mobile phones, printing terminals, residential terminals, networks, electronic metering, among others. Visit www.sagem.com and www.safran-group.com to find out more. 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.