Telxon Selects DiskOnChip for Its New Multi-Function Wireless Handheld Terminal; DiskOnChip Provides Local Storage and Enables Personalization of Telxon's PTC-1800 - M-Systems Flash Disk Pioneers' data storage products will be used in Telxon's smart phone/hand-held terminal - Company Business and Marketing

Edge: Work-Group Computing Report, March 13, 2000

M-Systems Flash Disk Pioneers Ltd. (Nasdaq:FLSH), Tuesday announced that Telxon Corp. (Nasdaq:TLXN) has selected DiskOnChip as the storage solution for its new PTC-1800 hand-held terminal.

Telxon is using M-Systems' flash-based DiskOnChip for local storage of the operating system, applications and data files in the PTC-1800. User data such as local databases and day transactions will be stored on DiskOnChip.

Also a commercial smart-phone, the PTC-1800 delivers Voice-Over-IP telephony, messaging and transaction-processing capabilities based on the Microsoft Windows CE operating system, which will be stored on DiskOnChip. This high-function wireless phone can also access e-mail and Web pages.

Telxon is targeting the PTC-1800 at its traditional vertical markets, including in-store retail. With wide appeal to a broad array of horizontal applications, the PTC-1800 will enable store managers to make local or long distance phone calls and communicate by voice or two-way paging as they roam throughout the store conducting other mobile computing functions. Price verification, in-stock item inquiry and inventory replenishment information can all be accomplished with the single hand-held device.

"DiskOnChip enables us to personalize each PTC-1800 for specific individual use," stated Kenneth A. Cassady, Telxon's president and chief operating officer. "The presence of DiskOnChip allows customers to log-on, establish user identification, and have a professional assistant for schedules, reminder messages and e-mails."

"We are happy to provide Telxon with a local storage solution that allows its product to have features that make it so unique," said Chuck Schouw, president of M-Systems Inc. "With all of its valuable tools and utilities in its small package, the PTC-1800 is a powerful device that should assist a wide variety of end-user customers."

Telxon Corp. is a leading global designer and manufacturer of wireless networks and mobile information systems for vertical markets. The company integrates advanced mobile computing and wireless data communication technology with a wide array of peripherals, application-specific software and global customer services for its customers in more than 60 countries around the world. Telxon's global Web site address is http://www.telxon.com.

M-Systems Flash Disk Pioneers Ltd. is a leading developer, manufacturer and marketer of innovative data storage products, known as flash disks, that are primarily used in Internet appliances, network infrastructure equipment and other embedded systems. The company's flash disks provide the functionality of a mechanical hard drive on a solid-state silicon chip. M-Systems was first to bring to market a complete flash disk in a single die using breakthrough DiskOnChip Millennium technology.

The company's products are based on its patented TrueFFS technology, and include the DiskOnChip and Fast Flash Disk (FFD) families. For more information, contact M-Systems at 8371 Central Avenue, Suite A, Newark, Calif., 94560. Telephone: 510/494-2090, e-mail: info@m-sys.com and on the Internet: http://www.m-sys.com.

Note to Editors: A high-resolution image showing M-Systems' DiskOnChip is available on the Internet at http://www.m-sys.com/image/MDOC.jpg. A high-resolution image showing M-Systems' DiskOnChip Millennium and the Telxon PTC-1800 is available on the Internet at http://www.m-sys.com/telxon.jpg.>

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