msystems' Second Quarter Earnings Release and Conference Call Scheduled for August 7, 2006

msystems(TM) (Nasdaq: FLSH) announced that it will
release its second quarter 2006 financial results on Monday, August 7,
2006, during pre-market hours.
   Following the earnings announcement, management will host a
conference call at 10:00 a.m. EDT. The call will not include a Q&A
session. The call can be accessed by dialing: [phone]. The
call will also be available live on the Internet at www.msystems.com
and www.kcsa.com. Following the call, the webcast will be archived for
a period of 90 days.
   A replay of the call will be available beginning at approximately
12:00 p.m. EDT, August 7, 2006, until August 14, 2006 at 11:59 p.m. To
listen to the replay, please call [phone]. To access the
replay, users will need to enter the following code: 7678807.

   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.

   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.