M-Systems' DiskOnKey Product Line Compatible with Windows XP Service Pack 2 Flash Configuration Technology

Business Wire,  March 31, 2005  

Tags: Microsoft Windows, Microsoft Windows XP, Microsoft Windows XP Service Pack 2, Service Pack 2

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SUNNYVALE, Calif. -- -

DiskOnKey(R) Devices Allow End-Users to Easily and Securely Extend a Wireless Network to Any Windows(R) "Connect Now" Capable Devices

M-Systems (Nasdaq:FLSH), the leading developer of USB flash drives, announced today that its DiskOnKey product line is now compatible with Microsoft's Windows "Connect Now" technology, which offers consumers an easy and secure solution to set up a wireless network. Used in conjunction with the Microsoft Wireless Network Setup Wizard in Windows XP Service Pack 2 (SP2), DiskOnKey acts as a conduit to create a new wireless network or add any Windows "Connect Now" capable devices, such as routers and printers, to their existing networks.

"We are pleased to collaborate with Microsoft and provide end users with a device that allows them to take full advantage of the simplicity found in Windows XP SP2," said Blaine Phelps, worldwide marketing director of M-Systems' DiskOnKey. "By combining Microsoft's software with DiskOnKey's portable capabilities, consumers can increase efficiency and eliminate the need to manually network each device separately."

To set up a new wireless network, or add devices to an existing network, consumers simply save the wireless network configuration settings from the Wireless Network Setup Wizard to the DiskOnKey device. This allows the user to plug the DiskOnKey into each computer or other Windows "Connect Now" compatible devices. DiskOnKey then adds the wireless network settings to the device and completes the networking process.

"Consumers have been asking for an easier way to create and extend wireless networks," said Kevin Unangst, director of marketing for Windows XP. "The 'Connect Now' flash configuration technology in SP2 provides an easy-to-use solution for them to configure their home networks, or add devices and computers to their existing networks. DiskOnKey nicely complements our technology and offers the user a high-performance device to effectively transfer networking information to each device."

DiskOnKey devices supporting the networking advances in Windows XP SP2 are currently available. For more information, please visit DiskOnKey's Web site at www.diskonkey.com or Microsoft's Windows Connect Now technology Web site at http://www.microsoft.com/windowsxp/ using/networking/getstarted/windowsconnectnow.mspx. (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

About M-Systems' DiskOnKey

The DiskOnKey is a unique, patented solution offering partners the unprecedented flexibility and ease-of-use to implement M-Systems' expertise into their existing product line or to design their own form factor using the company's internal architecture. The award-winning DiskOnKey product line offers consumers trusted quality, reliability, extreme security and the industry's leading product warranty.

For product information, enhancements, upgrades and general information on the USB flash drive category please visit www.diskonkey.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(R) product and the multimedia mobile handset market with its Mobile DiskOnChip(R) products. For more information, please contact M-Systems at www.m-systems.com.

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

NOTE: 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, risks related to: the effect of global economic conditions in general and conditions in the company's 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 the company's and its customers' inventory levels and in 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 the company's and its customers' products and markets; development, release and sales of new products by strategic suppliers and customers; development and growth of anticipated markets for the company's and its customers' products; and other risk factors detailed in the company's most recent annual report and/or in any of its other filings with the Securities and Exchange Commission. All forward-looking statements included in this release are based upon information available to the company as of the date hereof. The company assumes no obligation to update the information in this 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 the company's Web site above does not constitute incorporation of any of the information thereon into this press release.

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