Philips Selects DiskOnChip as the Onboard Storage Device for Its Net Display Module

Business Wire, August 22, 2002

Business Editors & High-Tech Writers

FREMONT, Calif.--(BUSINESS WIRE)--Aug. 22, 2002

M-Systems' Flash Disk Enables Advanced Features in Philips' Module Designed for Web Tablets, Information Display Kiosks and Thin Clients

M-Systems (Nasdaq:FLSH), a leader in flash disk data storage products, today announced that Royal Philips Electronics (AEX:PHI) (NYSE:PHG) has selected DiskOnChip(R) as the onboard storage device in its Net Display Module.

The Philips module is a 10.4-inch thin film transistor (TFT) LCD (liquid crystal diode) touch screen and an integrated processor board designed to be used by original equipment manufacturers (OEMs) producing products such as Web tablets, information display kiosks and thin clients.

Two of M-Systems' 32-megabyte (MB) DiskOnChip Millennium Plus flash disks are being used to store the Windows CE operating system, software and user data in each Net Display Module. The Net Display Module uses the latest technologies to allow users to surf the Web or view full motion streamed video on a full-sized LCD screen, with the look and feel of a color PDA (Personal Digital Assistant).

"M-Systems' DiskOnChip is perfect for our Net Display Module," said Wim Lemay, business development manager, Philips Components, RCS. "It's ease of integration allowed us to quickly and cost-effectively integrate 64MB of flash disk storage.

"Furthermore, DiskOnChip's superb reliability and performance contribute to the other cutting-edge technologies that make our product a winner with OEMs developing the latest products for the consumer."

"I'm very impressed with the Net Display from Philips and happy that we were able to contribute to its ability to reliably store a great deal of desirable features," said Francois Kaplan, M-Systems' general manager for Europe.

"The Net Display Module from Philips is an excellent example of how the latest technologies can be combined to provide the basis for hot new products for consumers that want to take their entertainment, communications and Internet with them wherever they go."

About the Net Display Module from Philips

Philips' Net Display Module with M-Systems' DiskOnChip flash disk is currently available throughout the world to OEMs. More information about Philips' Net Display Module from Philips can be found on the Internet at http://www.philips.com/InformationCenter/Global/FArticle Detail.asp?lArticleId=1169&lNodeId=353&channel=353&channelId=N353A1169.

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of EUR 32.3 billion in 2001. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring and one-chip TV products.

Its 189,000 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors and medical systems. Philips is quoted on the NYSE (symbol:PHG), London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at www.news.philips.com.

About M-Systems

M-Systems is a leader and innovator of flash-based data storage products known as flash disks. M-Systems' flash disks provide the functionality of a mechanical hard drive in a silicon chip. M-Systems' products are based on its patented TrueFFS(R) technology and target applications in a vast array of markets, including connected devices, mobile and telecom.

M-Systems' products include the DiskOnChip(R), DiskOnKey(R) and Fast Flash Disk (FFD) product families. For more information, contact M-Systems at www.m-sys.com.

The matters discussed in this news release include forward-looking statements that are subject to risks and uncertainties that may cause actual results to vary significantly. These risks include market and competitive factors and other risks described in the company's most recent annual report and/or in any of its other filings with the Securities and Exchange Commission. The company assumes no obligation to update the information in this release. Reference to the company's Web site above does not constitute incorporation of any of the information thereon into this news release.

Note to Editors: All company and product names mentioned may be trademarks or registered trademarks of their respective holders and are used for identification purposes only.