STMicroelectronics Signs Partnership Agreement with M-Systems; Companies to Provide Complete Solutions to Customers Utilizing the STPC Family of Embedded Microprocessors

Business Wire, Sept 17, 2002

Business Editors & High-Tech Writers

KFAR SABA, Israel--(BUSINESS WIRE)--Sept. 17, 2002

M-Systems (Nasdaq:FLSH), a leader in flash-based data storage products, today announced that STMicroelectronics (NYSE:STM), a world-leading supplier of system-on-chip (SOC) solutions, has signed on as a partner within the framework of M-Systems' M-Power(TM) Partner Program.

The M-Power program brings together "best in class" products and services from industry-leading vendors to enable designers to accelerate their development cycle while meeting demanding performance and time-to-market requirements.

Under the terms of the agreement, STMicroelectronics will cooperate with M-Systems to provide complete solutions to customers utilizing the STPC family of x86-based SOC embedded microprocessors.

This new collaborative relationship between the companies will help to guarantee customers a seamless integration of M-Systems' DiskOnChip flash disk products into products such as consumer electronics, thin appliances and industrial applications based on the STPC.

"By cooperating with M-Systems and including DiskOnChip with our STPC designs, we are able to help our customers to further reduce their development time and experience a faster time-to-market," said Colin Long, STPC product marketing director, STMicroelectronics.

"In addition, by working with M-Systems to include the BIOS (basic input/output system) within DiskOnChip to provide full boot and disk capability, we are able to help our customers to decrease their component count and reduce overall system cost."

"STMicroelectronics' STPC family and M-Systems' DiskOnChip family share the same target applications and it's only natural that we have entered into this partnership," said Francois Kaplan, M-Systems Europe general manager.

"Like the STPC family, our products offer low power consumption, high performance and ability to operate in wide temperature ranges. Both companies' products are designed for applications such as Web appliances, car navigation and entertainment, in-flight entertainment, point-of-sale, industrial control, thin clients and server appliances. These types of products can now benefit from the synergy that our partnership will nurture."

According to market research firm Gartner Dataquest, STMicroelectronics is the world's largest supplier of differentiated integrated circuits for consumer electronics products such as set-top boxes, TV sets, DVD players and digital cameras.

About the STPC from STMicroelectronics

More information about STMicroelectronics' STPC family of embedded microprocessors can be found on the Internet at: www.st.com/stonline/products/support/stpc/stpc.htm.> About M-Power(TM)

More information about M-Systems' M-Power(TM) Partner Program can be found on the Internet at: www.m-sys.com/m-power.> 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.

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.