M-Systems Partners with Iomega Offering Global Availability of DiskOnKey Technology; Iomega Enhances Storage Product Line with the Leading USB Keychain Storage Technology

Business Wire, Nov 14, 2002

Business Editors & High-Tech Writers

FREMONT, Calif.--(BUSINESS WIRE)--Nov. 14, 2002

M-Systems (Nasdaq:FLSH), a leader in flash-based data storage products, today announced that Iomega Corp. (NYSE:IOM), a global leader in portable data storage, has adopted the DiskOnKey(R) Technology platform into its popular family of storage solutions.

Iomega will offer M-Systems' new DiskOnKey Pro form factor, branded as the Iomega Mini USB Flash Drive, with storage capacities of 64MB and 128MB.

By offering the device, Iomega can respond to the growing market demands for driverless portable storage devices. DiskOnKey Technology has become the storage platform of choice in the USB keychain storage category offering multi-OS support in a diminutive size, with an integral processor capable of running applications from the device.

This proprietary internal architecture and technology has allowed the DiskOnKey, to become the leading solution for large OEMs and partners seeking a portable storage device.

"There are numerous USB keychain storage solutions, but only M-Systems' technology delivers the technological edge, functionality and the power of a 32-bit processor to run software powered by Iomega's patented Active Disk technology," said Michael Johnson, product general manager, sourced products, Iomega.

"The new Iomega Mini USB Flash Drive powered with DiskOnKey Technology is the ideal solution for Iomega customers looking for moderate portable storage without the need for external components."

M-Systems has implemented the new DiskOnKey Technology into its entire line of DiskOnKey products offering unparalleled computing power. The company's OEMs and partners have the flexibility to design their own unique form factor encasing the DiskOnKey Technology inside.

M-Systems' heritage as a technology innovator continues with the development of compelling applications including KeySafe security, Winlogon, automatic boot functionality and the MyKey personalization application based on M-Systems' recently released Software Developers Kit.

"Our new partnership with Iomega demonstrates the viability of the USB keychain storage category and joining Iomega's renowned storage line is not only an honor, but a clear validation of DiskOnKey's technology leadership and solution," said Blaine Phelps, worldwide marketing manager, M-Systems' DiskOnKey Division.

"Partnering with industry leaders like Iomega allows us to drive the DiskOnKey Technology platform to a broader audience ultimately delivering a ubiquitous technology for everyday use."

The DiskOnKey product line offers award-winning quality, reliability and the assurance that information will be secure. M-Systems substantiates this claim by submitting the DiskOnKey and DiskOnKey Pro to rigorous testing for reliability and durability earning Microsoft's Windows Hardware Quality Testing Lab (WHQL) certification, as well as receiving the certified-USB logo set by the USB-IF.

Availability of M-Systems' DiskOnKey Technology

For a complete list of platforms, storage capacities, prices and global availability of the DiskOnKey Technology product line visit DiskOnKey on the Internet at www.diskonkey.com for information.

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(TM)) product families. For more information, contact M-Systems at www.m-sys.com.

About Iomega

Iomega provides easy-to-use, high value storage solutions to help people protect, secure, capture and share their digital valuables. Iomega's award-winning storage products include the popular Zip(R) 100MB, 250MB and 750MB drives, high-performance Iomega(R) HDD Portable Hard Drives that feature capacities from 20GB to 30GB, Iomega(R) HDD Desktop Hard Drives that offer capacities from 40GB to 120GB, Iomega(R) external CD-RW drives and the new Iomega(R) Mini USB Drives.

Iomega simplifies data protection and sharing at home and in the workplace with Iomega(R) Automatic Backup software, Iomega Sync software, HotBurn(R) CD-recording software and Active Disk(TM) technology. For networks, Iomega(R) NAS servers offer capacities of 120GB to 720GB. The company can be reached at 888/4-IOMEGA (888/446-6342) or on the Web at http://www.iomega.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.