New MegaSIM-Supporting Handset: SAGEM my700X, to Integrate Gigabytes of Memory

  
    
  
  
    
      msystems (NASDAQ: FLSH), a leader in smart personal storage, and Sagem 
      Communication (SAFRAN Group) today announced that the SAGEM my700X 
      multimedia mobile phone is able to provide one of the highest storage 
      capacities: 3-gigabytes (GB) of flash-based memory.
    
    
      The large amount of solid-state mobile storage in the SAGEM my700X is 
      made possible through the inclusion of msystems’ 
      1GB MegaSIM card along with a slot able to contain a mini SD card up to 
      2GB. By providing abundant available storage for multimedia files, this 
      unique combination of MegaSIM and SD card allows the user to benefit 
      even more with MegaSIM as a secure platform for the launch of new 
      services and applications.
    
    
      Combining state-of-the-art, high capacity flash memory technology, 
      independent processing power and advanced cryptographic features, 
      MegaSIM cards provide secure storage capacity for content and 
      applications within a regular, familiar SIM card package.
    
    
      The SAGEM my700X is a “must have” 
      phone for those who are passionate about music and high tech features. 
      It has all the qualities of new generation mobile phones: the 
      possibility of listening to music or FM radio; a 1.3M pixel camera; the 
      EDGE technology – plus a very fashionable 
      design.
    
    
      “Through the combination of memory media 
      within their phone, Sagem Communication is providing mobile network 
      operators and subscribers with a high level of flexibility as well as a 
      mobile platform to enable new and advanced services,” 
      said Eytan Pisetzky, vice president of marketing for the Mobile Network 
      Operators division at msystems. “We are very 
      happy to collaborate on MegaSIM-supporting phones with Sagem, a leading 
      handset provider and an important player in the industry. By including 
      msystems’ MegaSIM card in the SAGEM my700X, 
      MNOs have the ability to utilize up to 1GB of secured memory that is 
      directly linked to the SIM card, enabling advanced m-commerce 
      applications as well as convenient storage for photos, video clips, 
      music and other files.”
    
    
      The SAGEM my700X multimedia mobile phone with msystems’ 
      1GB MegaSIM card will be demonstrated during CARTES 2006, 7-9 November, 
      in booth #4K 026, where msystems executives will be on hand to present 
      the Company’s latest products and 
      technological achievements. More information about the conference is 
      available online at www.cartes.com/en/2006/index.htm.
    
    
      About Sagem Communication
    
    
      Sagem Communication (SAFRAN Group) is a major player in the mobile and 
      broadband communication industries that has acquired strong worldwide 
      positions through constant technological innovation. SAGEM produces 
      particularly outstanding products in the following business areas: 
      mobile phones, printing terminals, residential terminals, networks, 
      electronic metering, among others. Visit www.sagem.com 
      and www.safran-group.com to 
      find out more.
    
    
      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.msystems.com. 
      msystems. made smarter.
    
    
      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 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.
    
  
msystems (NASDAQ: FLSH), a leader in smart personal storage, and
Sagem Communication (SAFRAN Group) today announced that the SAGEM
my700X multimedia mobile phone is able to provide one of the highest
storage capacities: 3-gigabytes (GB) of flash-based memory.

   The large amount of solid-state mobile storage in the SAGEM my700X
is made possible through the inclusion of msystems' 1GB MegaSIM card
along with a slot able to contain a mini SD card up to 2GB. By
providing abundant available storage for multimedia files, this unique
combination of MegaSIM and SD card allows the user to benefit even
more with MegaSIM as a secure platform for the launch of new services
and applications.

   Combining state-of-the-art, high capacity flash memory technology,
independent processing power and advanced cryptographic features,
MegaSIM cards provide secure storage capacity for content and
applications within a regular, familiar SIM card package.

   The SAGEM my700X is a "must have" phone for those who are
passionate about music and high tech features. It has all the
qualities of new generation mobile phones: the possibility of
listening to music or FM radio; a 1.3M pixel camera; the EDGE
technology - plus a very fashionable design.

   "Through the combination of memory media within their phone, Sagem
Communication is providing mobile network operators and subscribers
with a high level of flexibility as well as a mobile platform to
enable new and advanced services," said Eytan Pisetzky, vice president
of marketing for the Mobile Network Operators division at msystems.
"We are very happy to collaborate on MegaSIM-supporting phones with
Sagem, a leading handset provider and an important player in the
industry. By including msystems' MegaSIM card in the SAGEM my700X,
MNOs have the ability to utilize up to 1GB of secured memory that is
directly linked to the SIM card, enabling advanced m-commerce
applications as well as convenient storage for photos, video clips,
music and other files."

   The SAGEM my700X multimedia mobile phone with msystems' 1GB
MegaSIM card will be demonstrated during CARTES 2006, 7-9 November, in
booth #4K 026, where msystems executives will be on hand to present
the Company's latest products and technological achievements. More
information about the conference is available online at
www.cartes.com/en/2006/index.htm.

   About Sagem Communication

   Sagem Communication (SAFRAN Group) is a major player in the mobile
and broadband communication industries that has acquired strong
worldwide positions through constant technological innovation. SAGEM
produces particularly outstanding products in the following business
areas: mobile phones, printing terminals, residential terminals,
networks, electronic metering, among others. Visit www.sagem.com and
www.safran-group.com to find out more.

   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.msystems.com.
msystems. made smarter.

   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 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.