Flash Memory Summit Recognizes msystems(TM) x4(TM) Technology as the Most Innovative Flash Memory Technology of 2006; x4 Techno

msystems (NASDAQ:FLSH), a leader in smart personal
storage, today announced that its x4 NAND flash technology was
recognized as the "Most Innovative Flash Memory Technology" of 2006 by
a panel of industry experts at the Flash Memory Summit.
   "We received such a significant number of quality entries covering
a wide range of flash memory technologies that our judges had a
challenging time selecting just one winner," explained Jay Kramer,
conference chairperson and head of the judging panel for the Best of
Flash Memory Summit Awards. "The x4 NAND flash technology from
msystems is truly a groundbreaking flash memory solution that
exemplifies the most innovative technology at this inaugural Flash
Memory Summit."
   msystems x4 technology was developed in collaboration with Tel
Aviv University's (TAU) School of Electrical Engineering and
exclusively licensed to msystems, for use in flash memory products, by
Ramot, the technology transfer company and commercialization arm of
TAU.
   "This award-winning x4 technology and other technological
innovations show that investing in academic excellence can deliver
commercial results," said Professor Itamar Rabinovich, president of
Tel Aviv University. "Our cooperation with industry leaders such as
msystems ultimately benefits society at large."

   About Ramot at Tel Aviv University Ltd.

   Ramot is the technology transfer company of Tel Aviv University
(TAU). Ramot fosters, initiates, leads, and manages the transfer of
new technologies from TAU laboratories to the marketplace, by
performing all activities relating to the protection and
commercialization of inventions and discoveries made by faculty,
students and other researchers of TAU. Ramot provides a dynamic
interface connecting industry to leading edge science and innovation,
offering new business opportunities in a wide variety of emerging
markets.
   Founded in 1963, TAU is one of Israel's foremost research and
teaching universities. Located in Israel's cultural, financial and
industrial heartland, TAU is at the forefront of basic and applied
research in a wide variety of scientific research disciplines.

   About the Flash Memory Summit

   The 1st Annual Flash Memory Summit is the only conference
dedicated entirely to flash memory and its applications. The Summit
features half-day tutorials, workshops, paper and panel sessions,
keynotes, roundtables, special sessions, and exhibits. Subjects
include hardware, software, design methods, consumer applications,
embedded applications, computer and communications applications,
alternative technologies, programming methods, testing, standards, and
market research. For more information, visit
www.flashmemorysummit.com.

   About msystems

   msystems has been transforming raw flash material into smarter
storage solutions since 1989. From embedded flash drives deployed in
millions of mobile handsets to U3 USB smart drives designed for
leading global brands, msystems creates, develops, manufactures and
markets smart personal storage solutions for a myriad of applications
targeting high growth markets.
   More information is available online at www.m-systems.com.
msystems. made smarter.
   Note to Editors: More information about msystems x4 Technology is
available online at
www.m-systems.com/site/en-US/Technologies/Technology/x4.htm.
   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: all risk associated with the
development and implementation of x4 technology, including
difficulties in utilization or implementation of 4-bit/cell NAND
flash, , any failure we may experience in perfecting and/or protecting
our intellectual property rights related to x4 technology, and the
risk that flash manufacturers may opt to utilize such other
technologies and not our x4 technology; the effect of global economic
conditions in general and conditions in msystems' 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 msystems' 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 msystems' 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 msystems' and its customers'
products; and other risk factors detailed from time to time in
msystems' filings with the Securities and Exchange Commission.
msystems 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 msystems' website above does not constitute
incorporation of any of the information thereon into this press
release.