mDOC(TM) H3 Embedded Flash Drive from msystems(TM) Now in Mass Production; Company Preparing to Ship to Top-Tier Customers for H

msystems (NASDAQ:FLSH), a leader in smart personal
storage, today announced that mass production of the mDOC H3 embedded
flash drive (EFD) has commenced and will start shipping to top-tier
customers for their high-volume mobile projects.
   As a testament to the growing importance of personal storage
within mainstream multimedia handsets and smart phones, top-tier
manufacturers have integrated mDOC H3 into their latest products as a
key component to provide high-capacity storage for photos, music
files, applications and anything else subscribers may choose to save
on their handsets' personal storage.
   "It is encouraging to see that the confidence our partners put in
mDOC H3 is shared by our manufacturing customers" said Dan Inbar,
corporate vice president and co-manager of the msystems mobile
division. "Based upon more than 17 years of flash expertise, a strong
intellectual property portfolio and the experience of integrating our
products within millions of deployed, tier-1 mobile handsets, mDOC H3
takes a smarter approach to embedded flash drives. In addition to
allowing easier integration of the latest, most cost-effective NAND
flash material from major silicon partners such as Toshiba and Hynix,
we have succeeded in bringing the mDOC H3 to market with an even
higher level of system performance than initially announced."
   Although initial announcements stated that mDOC H3 would have a
write speed of 4-megabytes per second and a read speed of 10-megabytes
per second, msystems has already achieved write speeds of up to
7-megabytes per second and read speeds as high as 25-megabytes per
second. The high system performance of mDOC H3 is enabled by its
advanced architecture and its embedded TrueFFS(R)-based flash
management software, which operates internally within the chip as
firmware. Embedded TrueFFS frees the host for other tasks and provides
CPU and bus offload while overcoming the limitations of the latest
NAND technology.
   The mDOC H3 embedded flash drive, now mass produced in a range of
densities up to 1-gigabyte, is available from msystems. The 2-gigabyte
mDOC H3 is slated for availability within the next 2 months.

   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.

   Note to Editors: A high-resolution photo image of mDOC H3 embedded
flash drives from msystems is available online at
www.msystems.com/NR/rdonlyres/5DC88DF0-AEA0-40B9-8E70-D1FF08A20ED6
/0/MDOC_H3_300DPI.jpg. (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.) High-resolution photo images of other
msystems products can be found on the Internet at
www.m-systems.com/site/en-US/Corporate/PressRoom/ImageLibrary.
   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
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incorporation of any of the information thereon into this press
release.