Partnership Furthers DiskOnChip’s Ease of Integration within Mobile Devices Running µ(Micro)ITRON, Japan’s Most Popular Operating System

TOKYO and FREMONT, Calif., June 28, 2004. M-Systems (Nasdaq: FLSH) and ACCESS (Tokyo Stock Exchange: 4813) today announced that M-Systems has become a member of the ACCESS Advanced Alliance (AAA), a partner program of ACCESS which provides high quality tools, information and services to partners. The two companies will be cooperating to offer support for M-Systems’ Mobile DiskOnChip within applications running the µ(Micro)More real-time operating system (OS) for mobile devices. µMore is based on µITRON, which is the most widely used OS for embedded devices developed in Japan.

Through this support, Mobile DiskOnChip can be used like a standard disk drive within the µMore OS environment. Additionally, TrueFFS, M-Systems’ patented flash file system with advanced wear leveling algorithms, on-the-fly error correction, and other NAND flash management features, enables the flash silicon within Mobile DiskOnChip to operate reliably, with a mean time between failures (MTBF) measured in millions of hours.

“Mobile DiskOnChip is the ideal storage solution for handsets and other mobile devices,” said Toru Arakawa, president and CEO, of ACCESS. “By supporting Mobile DiskOnChip, mobile devices based on µMore will have the option of non-volatile memory with the industry’s highest reliability.”

In order to promote the adoption of Mobile DiskOnChip and µore by mobile device developers in Japan, M-Systems has created an evaluation board for the “Solution Engine” platform. Solution Engine, from Hitachi Ultra LSI, is a very popular development platform within the embedded community in Japan.

“ACCESS is contributing compelling software solutions to the mobile industry and I am pleased that M-Systems is now a member of the AAA,” said Yuzo Tsukui, president of M-Systems Japan. “Mobile device developers in Japan and throughout the world using the µMore operating system can now more easily enjoy the benefits of reliable and high-performance on-board memory within their designs.”

About µMore
µMore v4.0 is an ITRON 4.0-compliant real-time OS for the next generation of mobile devices. Utilizing a CPU’s power-saving function, the µMore OS optimizes an appliance’s limited resources to allow for high performance and high functionality while using low power consumption.

About Mobile DiskOnChip
Mobile DiskOnChip implements cost-effective NAND and Multi-Level Cell (MLC) NAND flash technology to deliver the industry’s highest capacity flash memory in the smallest form factor. Its high performance and unsurpassed reliability enable full scale OSs and multimedia applications on advanced mobile handsets. More information about Mobile DiskOnChip can be found on the Internet at www.m-systems.com/mobile.

About ACCESS Co., Ltd.
ACCESS Co. Ltd. (Tokyo Stock Exchange: 4813) is headquartered in Tokyo, Japan, and has subsidiaries in Fremont, California, Oberhausen, Germany, and Beijing, China. ACCESS is a global provider of mobile content delivery and access technologies for information appliances. ACCESS’ embedded NetFrontR and Compact NetFront® browsers power 280 different commercial products worldwide including mobile phones, digital televisions, set-top boxes, game consoles, PDAs, car navigation systems, web phones, kiosk terminals and intranet terminals. ACCESS’ Compact NetFront microbrowser is most widely deployed in phones for NTT DoCoMo’s popular i-mode® service. To date, over 126 million ACCESS software licenses have shipped from more than 90 major Internet device manufacturers (As of April, 2004). ACCESS was listed on the Tokyo Stock Exchange Mothers market on February 26, 2001. More information is available at www.access.co.jp/english or www.access-us-inc.com.

About M-Systems
M-Systems designs, develops and markets innovative flash data storage solutions for digital consumer electronics markets. M-Systems primarily targets two fast-growing digital consumer electronics markets: the USB (universal serial bus) flash drive market with its DiskOnKey product and the multimedia mobile handset market with its Mobile DiskOnChip products. For more information, please contact M-Systems at www.m-systems.com.

Note to Editors:
High-resolution photo images of M-Systems’ products can be found on the Internet at www.m-systems.com/content/Corporate/Press/Photos.asp.


All company and product names mentioned may be trademarks or registered trademarks of their respective holders and are used for identification purposes only. NOTE: 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 M-Systems’ 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 M-Systems’ 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 M-Systems’ 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 M-Systems’ and its customers’ products; and other risk factors detailed from time to time in M-Systems’ filings with the Securities and Exchange Commission. M-Systems 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 M-Systems’ website above does not constitute incorporation of any of the information thereon into this press release.