DiskOnChip Adopted in BSQUARE SmartBuild Reference Design for Portable Devices

Business Wire, Sept 3, 2002

Business Editors & High-Tech Writers

FREMONT, Calif.--(BUSINESS WIRE)--Sept. 3, 2002

M-Systems (Nasdaq:FLSH), a leader in flash disk data storage products, today announced that BSQUARE (Nasdaq:BSQR) has adopted DiskOnChip(R) Millennium(R) Plus into its Intel XScale(TM) Microarchitecture-based SmartBuild(TM) reference design platform for smart devices running Microsoft Windows CE .NET.

The SmartBuild package aids in the quick development of Windows CE .NET-based embedded devices through its pre-qualified, near-production- ready SmartBuild reference platform for Intel(R) XScale(TM) Microarchitecture. This platform features built-in flexibility for the addition or elimination of hardware and software functionality.

The design features M-Systems' DiskOnChip Millennium Plus, a 32-megabyte flash disk in a small form factor natively supported within Windows CE .NET.

The DiskOnChip Millennium Plus benefits from the attractive cost structure of NAND flash technology and adds advanced features such as: boot capability, 16-bit data access, built-in ECC/EDC, state-of-the- art storage management through M-Systems' patented TrueFFS(R) and authentication and hardware protection mechanisms.

Because it is fully bootable, DiskOnChip Millennium Plus eliminates the costs of extra components needed on the board.

"The BSQUARE SmartBuild reference design for XScale Microarchitecture is targeted to help device manufacturers meet aggressive time-to-market, design cost and performance goals by offering easy product integration into mobile and embedded devices," said Yuval Sofer, M-Systems' associate vice president of business development.

"The combination of XScale, Windows CE .NET and the DiskOnChip Millennium Plus presents one of the most advanced and cost-effective solutions available today and reaches one of our key markets: PDAs and smart devices."

"The inclusion of M-Systems' DiskOnChip Millennium Plus into BSQUARE's SmartBuild reference design enables OEMs to create and deliver the next generation of smart, mobile Windows CE .NET-based devices with a shortened development process and greater flash memory capacity," said Keith White, senior director of the embedded and appliance platforms group at Microsoft Corp.

"We worked closely with M-Systems to integrate DiskOnChip Millennium into our second reference design for next-generation, smart mobile devices," said Brian Crowley, vice president of products, BSQUARE.

"Having a fast, cost-effective and reliable persistent storage solution that is easy to integrate is critical for OEMs building Windows Powered mobile devices. M-Systems' native support in the Windows CE .NET environment makes integration fast and easy."

About BSQUARE

BSQUARE accelerates the development, deployment and management of next generation smart devices and applications. The company's product and service suite includes Device Development Solutions, Wireless Solutions and Location-based Solutions.

For nearly a decade, BSQUARE has provided more than 150 world- class manufacturers, integrators and service providers the necessary building blocks to design, develop and test innovative products quickly and cost effectively.

BSQUARE offers its customers the deepest expertise in the latest hardware and software platforms and systems, providing critical engineering services that have resulted in the successful launch of hundreds of new products and applications.

BSQUARE's new wireless product and service solutions help companies expand into new data-oriented mobile markets, increasing client revenue and reducing risk and support costs associated with product development and deployment. For more information, visit BSQUARE at www.BSQUARE.com or call 888/820-4500.

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.