Microelectronica, an msystems(TM) Company, Signs up to World's Leading Consortium of SIM Manufacturers

Microelectronica, an msystems (NASDAQ: FLSH) company
specializing in the development and manufacturing of smart cards, as
well as smart card operating systems and applications, is the latest
company to join the ranks of SIMalliance, the world's leading
consortium of SIM manufacturers.
   Commenting on its latest member, SIMalliance chairman Christophe
Dolique said: "Microelectronica is joining an association that, over
the past five years, has become one of the world's foremost
commentators in the mobile business. By operating outside the singular
commercial interests of any individual SIM card player, SIMalliance
has been able to pinpoint the mission critical services coming
downstream and help steer their development to meet the practical
needs of the market."
   With key customers in Europe and Latin America, Microelectronica
will extend the presence and reach of an association whose membership
currently accounts for some 80% of SIM sales worldwide.
   Commenting on joining the alliance, Simone Cavallo, general
manager of the msystems MNO division said: "With a new generation of
high-potential SIM applications now set to enter the mobile ecosystem,
the entire industry is crying out for innovative thinking and clear
direction. By joining this unique association, which is the leading
proponent for SIM-based development, we're convinced that we are
better positioned to influence and to contribute to developments in
the industry."
   Microelectronica joins existing SIMalliance members: Gemalto,
Giesecke & Devrient, Incard, Oberthur Card Systems, Prism, Sagem-Orga
and Xponcard.

   About SIMalliance

   SIMalliance is the world's leading consortium of SIM interest
groups. Representing approximately 80% of the global SIM card market,
SIMalliance steers industry innovation and champions the high value
business benefits that SIM services deliver.
   Gemalto, Giesecke & Devrient, Incard, Microelectronica, Oberthur
Card Systems, Prism, Sagem-Orga and Xponcard are all SIMalliance
members.
   visit www.simalliance.org or email [e-mail] for more
information

   About Microelectronica and msystems

   Microelectronica is an msystems (Nasdaq: FLSH) company
specializing in the development and manufacturing of smart cards,
operating systems and applications for smart cards. Its parent
company, 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.

   This press release includes forward-looking statements as defined
in the Private Securities Litigation Reform Act of 1995. Readers are
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which may cause actual results to vary significantly. These risks
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