mModule uDOC, an Embedded USB Flash Drive from msystems(TM), Enables Reliable, High-Performance Data & OS Storage within Industrial and Embedded Market; Advantech designs uDOC into its Single Board Computers

COMPUTEX TAIPEI 2006

TAIPEI, Taiwan--(BUSINESS WIRE)--June 6, 2006--msystems (Nasdaq:FLSH), a leader in smart personal storage, today announced that its mModule uDOC embedded USB flash drive product is enabling the reliable, high-performance storage of data and operating systems (OSs) within new single board computers (SBCs) currently available from Advantech Co., Ltd. (Taidex: 2395).

Advantech, the leading ePlatform service provider, has uDOC designed-in on its single board computers - 5.25" PCM-9584 and EPIC PCM-4386. Industrial-grade single boards like these are most commonly used in industrial scenarios where they are deployed in rack-mounts for process control or embedded within other devices to provide control and interfacing. Because of the high product integration level, reduced component count and reduced connector count, embedded single boards are often smaller, lighter, more power-efficient and more reliable than comparable multi-board computers.

"We are very pleased to be working with msystems, a leader in smart personal storage, and integrate their advanced flash drive products into our single board computers," said Richard Huang of Advantech Embedded Computing. "Because of their ease of integration and cost-savings, embedded USB flash drives like msystems' mModule uDOC are gaining traction as a flash storage solution throughout the embedded industry. We are particularly happy with the reliability and performance, specifically boot performance of large OSs, that msystems' mModule uDOC product delivers."

msystems' mModule uDOC is a USB 2.0-based flash drive for embedded systems providing high-performance, reliability and security. It is a storage and boot solution ideal for a variety of embedded applications such as point of sale (POS) workstations, gaming machines, thin clients, servers and printers. mModule uDOC is fully supported as a plug and play solution within Microsoft(R) Windows(R) XP Embedded, Windows CE, WEPOS, Windows XP Professional, Linux and other OSs.

"We are very proud of our long history and successful relationship with Advantech, the leading ePlatform service provider and trend setter in this industry," said Noam Kedem, vice president of marketing for msystems. "We are happy that an industry leader of the caliber of Advantech recognizes msystems' mModule uDOC's contribution in making data and OS storage for embedded applications - smarter."

PCM-9584 and PCM-4386 industrial single board computers from Advantech and the mModule uDOC embedded flash drive from msystems, in densities ranging from 32-megabytes to 4-gigabytes, are available now. Combined solutions will be demonstrated at COMPUTEX TAIPEI 2006 and will be on display at the msystems booth (Hall 1, #B1133-B1137) during the show, June 6-10, 2006.

About Advantech

Advantech, the leading ePlatform service provider, has been an innovator in the development and manufacturing of high-quality, high-performance ePlatform services and products since 1983. For over twenty years, Advantech has been refining what is possible in the ePlatform service market, offering comprehensive system integration hardware and software, customer-centric service, global logistics support, and an industry-leading front as well as back office e-business infrastructure. For more information, visit www.advantech.com.

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. msystems' product lines include:

-- mDrive (formerly DiskOnKey(R)) U3 USB smart drives for personal, portable computing

-- mDOC embedded flash drives for mobile handsets and consumer electronics devices

-- mSIM MegaSIM(R) series high-density SIM cards and mSIM M.MAR(R) series SIM cards and highly secure cards (available both from msystems and its subsidiary Microelectronica)

-- mCard, high-quality memory cards for mobile handsets and digital cameras

-- mTrust (formerly Xkey(R)) end-to-end enterprise access, control and management solution for USB flash drives and other removable media

-- mSSD (formerly FFD(TM)) rugged solid state disks for mission-critical applications

-- mModule (formerly DiskOnChip(R) modular family) modular flash storage for embedded systems

-- mSafe (formerly SuperMAP(R) family) secure hardware and software crypto cores

More information is available online at www.m-systems.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.