msystems' Third Quarter Earnings Release and Conference Call Scheduled for October 23, 2006

  
    
  
  
    
      msystems™ (Nasdaq: FLSH) announced that it 
      will release its third quarter 2006 financial results on Monday, October 
      23, 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.
    
    
      A replay of the call will be available beginning at approximately 12:00 
      p.m. EDT, October 23, 2006, until, October 30, 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: 7984983.
    
    
      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.
    
  
msystems(TM) (Nasdaq: FLSH) announced that it will release its
third quarter 2006 financial results on Monday, October 23, 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.

   A replay of the call will be available beginning at approximately
12:00 p.m. EDT, October 23, 2006, until, October 30, 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: 7984983.

   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.