Advantech Integrates M-Systems' mDiskOnChip G3 as the Non-Volatile Storage Solution Throughout Its RISC-Based Product Line

Business Wire, June 2, 2004

Business Editors/High-Tech Writers

COMPUTEX TAIPEI 2004

TAIPEI, Taiwan--(BUSINESS WIRE)--June 2, 2004

Next-Generation Flash-Based Storage from M-Systems Contributes to

Performance, Reliability and Competitive Cost of ARM/Xscale-Based

Embedded Computing Platform from Advantech

M-Systems (Nasdaq:FLSH) and Advantech (Taidex:2395), the global ePlatform service provider, announced that Advantech's RISC-based Embedded Computing Platform (SBC & SOM) product lines will utilize M-Systems' recently released mDiskOnChip G3 flash disk for high-performance onboard non-volatile data and code storage.

A RISC (reduced instruction set computer) is a type of microprocessor that recognizes a relatively limited number of instructions. Offering high performance, low power consumption, small size and low cost, RISC-based products from Advantech with mDiskOnChip G3 are application-ready platform solutions suited for wireless, mobile and embedded applications in a wide variety of vertical markets. As the high-performance onboard storage device, mDiskOnChip G3 provides the capacity necessary for product-specific software and the Windows CE.Net and Embedded Linux operating systems that Advantech currently is running on its RISC-based products.

"By including mDiskOnChip G3 throughout our RISC-based product line, we are enabling our customers to reap the rewards derived from the latest flash technology. In addition to providing an abundance of storage capacity, mDiskOnChip G3 augments the low cost, extreme reliability and high performance that our customers have come to expect," said Joe Cheng, director of Advantech's RISC Embedded Computing Division.

"Advantech offers solutions ideal to many diverse embedded applications -- even more so now with their latest RISC-based product offering. As one of the world's leading single board computer manufacturers, Advantech is a company that we are pleased to partner with in order to provide complete computing solutions," said David Tolub, vice president and co-manager of M-Systems' DiskOnChip business unit.

mDiskOnChip G3 is based on M-Systems' DiskOnChip products designed for the mobile market, which have already been integrated within products from three out of the top four personal data assistant (PDA) manufacturers and five out of the top six mobile phone producers. Leveraging M-Systems' field-proven x2 technology, developed to harness the benefits of multi-level cell (MLC) NAND flash silicon for mobile phones and PDAs, mDiskOnChip G3 provides next-generation flash-based storage to Advantech's RISC-based products.

About Advantech

Advantech Co. Ltd. (Taidex:2395) is the global leading ePlatform service provider integrating Web-based technology, computing platforms and customization services that empower the connected eWorld. Advantech cooperates closely with system integrators to help them add value to their solutions to meet demanding requirements in a wide array of industries. Advantech delivers more than a thousand products and solutions under three main categories: Embedded & Applied Computing, Network Appliance, and eAutomation. With the combined talent of more than 2,000 people, Advantech operates an extensive support, sales and marketing network in 16 countries and 28 major cities to deliver fast time-to-market services to the company's worldwide customers. More information about Advantech is available online at www.advantech.com.

About M-Systems

M-Systems designs, develops and markets innovative flash data storage solutions for digital consumer electronics markets. M-Systems primarily targets two fast-growing digital consumer electronics markets: the USB (universal serial bus) flash drive market with its DiskOnKey product, and the multimedia mobile handset market with its Mobile DiskOnChip products. For more information, please contact M-Systems at www.m-systems.com.

Note to Editors: High-resolution photo images of M-Systems' products can be found on the Internet at www.m-systems.com/content/Corporate/Press/Photos.asp.> 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 M-Systems' 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 M-Systems' 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 M-Systems' 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 M-Systems' and its customers' products; and other risk factors detailed from time to time in M-Systems' filings with the Securities and Exchange Commission. M-Systems 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 M-Systems' Web site above does not constitute incorporation of any of the information thereon into this press release.

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