/
Investor relations



msystems has been transforming raw flash 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 continually pioneers personal storage paradigms. We enhance people’s lives by creating smart personal storage, enabling all of us to easily carry, access and control our data, whenever and wherever we choose.
personal storage. made smarter.
Select Customers:Kingston, Memorex, I-O Data, HP, Lenovo, Motorola, HTC, Palm, LG, Samsung, Sony and Sony Ericsson.
Strategic Flash Partners:Toshiba, Hynix, Spansion and Renesas.
Main Product Lines

/ mDOC offers optimized non-volatile embedded memory for multimedia content in mobile handsets. High-density embedded flash drives provide compact handsets and consumer electronics devices with memory solutions that use a standard interface in the smallest possible form factor.
embedded flash drives. made smarter.more…



/ mDrive (formerly DiskOnKey), the world’s first USB flash drive, is a portable and secure personal storage device. The U3 platform enables USB flash drives to become U3 smart drives for a private, protected and portable computing experience on any computer.
USB flash drives. made smarter.more…



/ The mSIM MegaSIM series combines high-density flash storage (from 64Mbytes to 1Gbyte), crypto functionality, processing power and high-speed data protocols, making them the ideal solution for mobile network operators to raise their ARPU and differentiate network-based products and services.
The mSIM M.MAR series offers a wide range of smart cards, including 2G and 3G SIM cards with Java Card functionality, and highly secure for banking and ID applications and services.
mobile services. made smarter.more...



/ mModule (formerly modular DiskOnChip) brings top reliability and performance to modular data storage for embedded systems, ranging from the automated office to infotainment and telecom/datacom networks. Choose from a wide range of interfaces and packages.
embedded systems. made smarter. more...



/ mCards, such as MMC, microSD and CompactFlash, provide high-quality, reliable personal storage in a range of densities for multimedia mobile handsets and digital cameras – from an industry leader and trusted partner.
memory cards. made smarter.more...



/ mSSD (formerly FFD) provides rugged and reliable hard drive replacements in a variety of form factors that support the most popular interfaces for military, aerospace, telecom, public transportation and factory automation applications.
mission-critical applications. made smarter.more…

Investment Considerations
/ msystems creates, develops, manufactures and markets smart personal storage solutions for a myriad of applications targeting high growth markets.
/ Our leading-edge technology has gained broad industry acceptance, which positions us to capitalize on the high-growth markets of smart phones and key-chain storage.
/ We have a global blue-chip customer base.
/ We have strategic partnerships with leading flash suppliers such as Toshiba,Hynix, Spansion and Renesas.
/ We have a strong financial position, which includes about $179 million (as of June 30, 2006).
/ We are highly focused on revenue growth and streamlining our strategy on all fronts to achieve and maintain profitability. Sales in the2nd quarter of 2006 totaled $209 million, a 72% increase compared with the comparable quarter in 2005.
Sales over the last5 quarters


Sales over the last 10 years

PRELIMINARY NOTE

Our websites contain historical information and forward-looking statements. Statements looking forward in time are included on our websites pursuant to the "safe harbor" provision of the private securities litigation reform act of 1995. They involve known and unknown risks and uncertainties that may cause our actual results in future periods to be materially different from any future performance suggested herein. Furthermore, we operate in an industry sector where securities values may be volatile and may be influenced by economic and other factors beyond our control. In the context of the forward-looking information provided in our websites and elsewhere, please refer to the discussions of risk factors detailed in, as well as the other information contained in, our most recent annual report and our other filings with the securities and exchange commission. We assume no obligation to update the information on our web sites

msystems' markets

msystems’ complete range of memory products are targeted at a variety of markets, including: multimedia mobile handsets, MNOs, USB flash drives, embedded systems,enterprise,military and aerospace.


Mobile handsets
Whether for multimedia content or corporate network services, our memory solutions bring smarter personal storage to handsets.

Mobile network operators
You can tap into new, multimedia revenue streams by giving subscribers access to a world of enticing multimedia content and services, including music, video and games.


USB flash drives
msystems’ mDrive (formerly DiskOnKey) launch in 2000 transformed the world of data storage as we knew it. It created a category that has grown into a market that never before existed: USB flash drives.


Enterprise security
mTrust is an enterprise solution for securing, controlling and monitoring data carried by mobile employees. mTrust ensures employees store information on secure USB Drives, and allows organizations to control the usage of all removable devices and media as well as centrally deploy and manage company-issued drives.


Embedded systems
msystems provides "best of breed" flash memory solutions with over a decade of successful installations in millions of embedded systems across the globe. Found in applications for telecom, rugged industrial systems and point of sale (POS) equipment, msystems’ memory solutions are also turning up in our own everyday lives – in car infotainment and consumer electronics devices. Choose from the most rugged and reliable solid- state disks, modular flash devices or embedded flash drives.


Military & aerospace
Since 1997, mSSD solid state disks (formerly FFD) have been deployed globally as drop-in hard disk drive replacements inside flight data recorders, moving maps, sonar and radar systems, reconnaissance and surveillance systems, tactical computers, rugged laptops, tablet PCs, wearable computers and blade servers.


Security IP
A trusted partner to complement your silicon, we bring our security IP to your designs - mobile, embedded systems, conditional access, smart cards, and consumer electronics – so you can secure more business.

ANNUAL FLASH MEMORY SUMMIT, SAN JOSE, Calif., Aug. 10, 2006 / News Release
Flash Memory Summit Recognizes msystems™ x4™ Technology as the Most Innovative Flash Memory Technology of 2006
x4 technology developed in collaboration with Tel Aviv University
msystems (NASDAQ: FLSH), a leader in smart personal storage, today announced that its x4 NAND flash technology was recognized as the “Most Innovative Flash Memory Technology” of 2006 by a panel of industry experts at the Flash Memory Summit.
“We received such a significant number of quality entries covering a wide range of flash memory technologies that our judges had a challenging time selecting just one winner,” explained Jay Kramer, conference chairperson and head of the judging panel for the Best of Flash Memory Summit Awards. “The x4 NAND flash technology from msystems is truly a groundbreaking flash memory solution that exemplifies the most innovative technology at this inaugural Flash Memory Summit.”
msystems x4 technology was developed in collaboration with Tel Aviv University’s (TAU) School of Electrical Engineering and exclusively licensed to msystems, for use in flash memory products, by Ramot, the technology transfer company and commercialization arm of TAU.
“This award-winning x4 technology and other technological innovations show that investing in academic excellence can deliver commercial results,” said Professor Itamar Rabinovich, president of Tel Aviv University. “Our cooperation with industry leaders such as msystems ultimately benefits society at large.”
About Ramot at Tel Aviv University Ltd.
Ramot is the technology transfer company of Tel Aviv University (TAU). Ramot fosters, initiates, leads, and manages the transfer of new technologies from TAU laboratories to the marketplace, by performing all activities relating to the protection and commercialization of inventions and discoveries made by faculty, students and other researchers of TAU. Ramot provides a dynamic interface connecting industry to leading edge science and innovation, offering new business opportunities in a wide variety of emerging markets.
Founded in 1963, TAU is one of Israel’s foremost research and teaching universities. Located in Israel’s cultural, financial and industrial heartland, TAU is at the forefront of basic and applied research in a wide variety of scientific research disciplines.
About the Flash Memory Summit
The 1st Annual Flash Memory Summit is the only conference dedicated entirely to flash memory and its applications. The Summit features half-day tutorials, workshops, paper and panel sessions, keynotes, roundtables, special sessions, and exhibits. Subjects include hardware, software, design methods, consumer applications, embedded applications, computer and communications applications, alternative technologies, programming methods, testing, standards, and market research. For more information, visit
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 msystems. made smarter.
Note to Editors: More information about msystems x4 Technology is available online at
###
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: all risk associated with the development and implementation of x4 technology, including difficulties in utilization or implementation of 4-bit/cell NAND flash, , any failure we may experience in perfecting and/or protecting our intellectual property rights related to x4 technology, and the risk that flash manufacturers may opt to utilize such other technologies and not our x4 technology; 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.

SanDisk buys Msystems
Hands over $1.55bn in stock

By Nick Farrell: יוםשלישי 15 אוגוסט 2006, 08:27

MAKER OF FLASH memory, SanDisk, has just bought an Israeli mobile phone memory outfit Msystems in a $1.55bn stock deal.

The move is a sign of further consolidation in the flash memory sector. Two months ago Micron bought memory-card maker Lexar Media for $850 million.

The deal is subject to Israeli court, regulatory and Msystems shareholder approval and will probably be completed before Christmas.

Sandisk said that Msystems would remain in Israel. Msystems, which recently changed its name from M-Systems Flash Disk Pioneers, has been in a spot of trouble lately.

Last month it said that it had launched an internal investigation into prior stock option grants "on its own initiative", and at the same time postponed an 8.7 million share stock offering.

SanDisk to Acquire msystems
07/31/2006
MILPITAS, CALIFORNIA and KFAR SABA, ISRAEL - July 30, 2006 - SanDisk® Corporation (NASDAQ: SNDK) and msystems™ Ltd. (NASDAQ: FLSH) today entered into definitive agreements for SanDisk to acquire msystems in an all stock transaction. This combination joins together two flash memory pioneers with complementary products, customers and channels. Together the combined company will have the people, technology, manufacturing and IP to play a leading role in creating new markets and accelerating the penetration of flash memory into existing storage applications.
“SanDisk and msystems, over the past 18 years, have been leading innovators in the flash storage market. This strategic acquisition will give us the critical mass and complementary products, customers, channels, technology and manufacturing base to take our shared vision to the next level. The NAND flash data storage business is in its early stages and we believe the market opportunity is largely untapped,” said Eli Harari, Chairman and CEO of SanDisk. “msystems is a leader in flash memory systems addressing mobile, portable and embedded markets and they have a strong team, significant IP and important OEM customers. SanDisk has a record of creating new market categories, world-class manufacturing capabilities and leading market share in the retail channel. Both companies are noted for their relentless innovation, and this acquisition is intended to further accelerate our pace of innovation. In the near term, this transaction better positions SanDisk to serve the expanding storage needs of handset manufacturers and mobile network operators. In the long term, the combination with msystems will be a catalyst in the development of next generation flash enabled consumer applications. We are extremely excited about joining forces with the msystems team to achieve our shared vision. We are committed to serving msystems’ OEM customers after the transaction closes.”
“From mDOC to megaSIM®, from U3™ to x4, msystems is creating new markets through innovation,” said Dov Moran, President and Chief Executive Officer of msystems. “We are truly proud of our achievements to date. This strategic deal will enable us to continue supporting our OEM customers, to whom we remain fully committed, and strengthen our innovation and product offering with SanDisk’s leading edge, low-cost fab capacity. This deal has synergy at its core, encompassing people, technology, products and customers. Based on our shared vision, as well as our teams’ history of successful and fruitful cooperation, I am confident we can succeed in achieving the goals we set for ourselves. I also believe that SanDisk’s extensive silicon expertise will prove itself as a strong catalyst to productizing our revolutionary x4 technology as well as other future innovations.”
In the transaction, each msystems ordinary share will be converted into 0.76368 of a share of SanDisk common stock, representing a 26% premium over the average closing price of msystems’ shares for the last thirty trading days. The closing of the transaction is subject to conditions, including, among others, Israeli court approval, regulatory approval and msystems shareholder approval. The transaction is expected to close in the fourth quarter of 2006.
In addition, msystems intends to release its second quarter 2006 financial results on Monday, August 7, 2006 during pre-market hours.
About msystems
msystems has been transforming raw flash 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.
About SanDisk
SanDisk, the world’s largest supplier of flash memory data storage card products, designs, manufactures and markets industry-standard, solid-state data, digital imaging and audio storage products using its patented, high density flash memory and controller technology. SanDisk is based in Milpitas, CA. Visit for more information.
Source: SanDisk

msystems' FlashDisc for the floppy user

Posted Mar 16th 2006 9:46AM by Ryan Block
Filed under: Storage

It's news to us, but apparently there's an untapped market of people out there who want a USB flash drive, but don't want it to be especially capacious -- or as msystems claims, they just want something with "storage density higher than floppy diskettes." msystems believes these people are apparently happy to rock 16 or 32MB; we're not entirely sure what they'd be doing with such limited amounts of memory (or why they wouldn't just lay down a couple of bucks more for a cheapie 64 / 128 / 256MB flash drive), but we definitely know marketing snake oil when we see it, and the FlashDisc, sir, is not "an exciting new category poised to radically transform the way people share their data." The FlashDisc is just a flash drive -- but relatively small, and presumably pretty cheap -- so you guys can stop talking down to consumers, because unless you're pricing this thing at the present cost of a floppy disc (about $0.25) you're about five or six years too late to be posing a flash drive as their alternative.