M-Systems and Toshiba Unveil Mobile DiskOnChip G3 -- The World's Smallest High-Capacity NAND-Based Memory Solution

3GSM World Congress 2003

M-Systems' x2 Technology Enables the First Multi-Level Cell (MLC) NAND-Based Internal Memory Device, Offering More Storage Capacity to
Mobile Handsets, PDAs and Other Applications

MLC NAND stores 2 bits of data per cell rather than the 1 bit per cell capacity found in single-level NAND flash, in essence doubling the storage capacity of the silicon. M-Systems' x2 technology, a combination of patented reliability and performance-enhancing algorithms, enables Toshiba's MLC NAND flash to be utilized within the Mobile DiskOnChip G3 product family.

"Toshiba invented flash memory and continues to be an innovator in flash technology. We are pleased to join M-Systems to create an integrated flash memory system solution optimized for mobile applications.

"Mobile DiskOnChip G3 provides the density, performance and low power requirements to meet the increasing memory needs of mobile devices," said Stephen Marlow, executive vice president of Toshiba America Electronics Components. "Mobile DiskOnChip G3 demonstrates the power of our strategic relationship with M-Systems, the leading flash disk technology pioneer."

Breaking the flash disk world record for capacity and size, Mobile DiskOnChip G3 features a single silicon die containing 512 megabits (64 megabytes) of Toshiba's 0.13 micron MLC NAND flash, an ultra thin controller and an execute in place (XIP) boot block.

Contained within a 7x10mm ball grid array (BGA) package, no other flash disk comes close to offering a comparable achievement within Mobile DiskOnChip G3's small size.

"Storage architecture within mobile handsets, PDAs and other devices is changing to support exploding memory needs without driving costs through the roof," said Jim Handy, director of non-volatile memory services, Semico Research.

"Today's mobile phones and PDAs need a large block of local storage to store full-scale operating systems and multimedia applications such as pictures and video. Advanced devices now call for as much as 64 megabytes of non-volatile memory, a need which is being addressed by the roll-out of storage devices such as Mobile DiskOnChip G3."

Improving the Memory Architecture of PDAs and Mobile Handsets

Mobile DiskOnChip G3 contains an internal controller and an XIP boot block, offering a complete non-volatile memory (NVM) solution.

With its multi-plane operations, direct memory access (DMA) support and MultiBurst operation, it delivers a burst read speed of up to 80 megabytes per second, crucial for features such as fast system boot and large file transfers (video and audio), common in multimedia messaging service (MMS).

By utilizing 0.13 micron MLC NAND to replace expensive legacy NOR flash, Mobile DiskOnChip G3 represents the most cost-effective solution available today for mobile designers.

Another example of the optimization of Mobile DiskOnChip G3 for mobile applications is its deep power-down mode. In order to conserve battery life, when not in use, Mobile DiskOnChip G3 consumes as little as 10 micro amps.

Furthermore, Mobile DiskOnChip G3 offers unrivaled data integrity with robust Error Detection Code/Error Correction Code (EDC/ECC) specifically tailored for MLC flash technology. Additionally, flash endurance is maximized with TrueFFS(R), M-Systems' proven flash file system.

"Mobile DiskOnChip G3 is the first memory device to enable the benefits of MLC NAND technology for memory-hungry mobile applications. It offers more memory without increasing the size of the silicon die," said Chuck Schouw, president of M-Systems Inc.

"Working closely with Toshiba, we have applied our proven flash disk expertise, gained through years of experience, to this new product optimized for the mobile market. Mobile DiskOnChip G3 represents the pinnacle of non-volatile memory technology designed to meet the specific needs of this burgeoning market."

Availability

Engineering samples of the 512Mbit Mobile DiskOnChip G3 flash disk will be available in the second quarter of 2003, with mass production slated for third quarter. Other capacities of the Mobile DiskOnChip G3 family ranging between 256Mbit to up to 1 gigabit (128 megabytes) are planned, allowing M-Systems and Toshiba to jointly market a complete family of Mobile DiskOnChip G3 products.

For more information, contact your M-Systems or Toshiba representative.

About M-Systems' x2 Technology

M-Systems' x2 technology is a set of advanced proprietary algorithms designed to enable Mobile DiskOnChip G3. It overcomes MLC-related error patterns and slow transfer rates by using a robust error detection and correction (EDC/ECC) mechanism. It provides performance enhancement with multi-plane operations, DMA support and MultiBurst operation.

More information about x2 technology can be found on the Internet at www.m-sys.com/technology/x2Tech.asp.

About Toshiba Corp.

Toshiba is a leader in information and communications systems, electronic components, consumer products, and power systems. The company's integration of these wide-ranging capabilities assures its position as a leading company in semiconductors, LCDs and other electronic devices.

Toshiba has 176,000 employees worldwide and annual sales of more than $40 billion. Visit Toshiba's Web site at www.toshiba.co.jp/index.htm.

About M-Systems

M-Systems is a leader and innovator of flash-based data storage products known as flash disks. M-Systems' flash disks provide the functionality of a mechanical hard drive in a silicon chip. M-Systems' products are based on its patented TrueFFS(R) technology, and target applications in a vast array of markets, including connected devices, mobile and telecom.

M-Systems' products include the DiskOnChip(R), DiskOnKey(R) and Fast Flash Disk (FFD(TM)) product families. For more information, contact M-Systems at www.m-sys.com.

The matters discussed in this news release include forward-looking statements that are subject to risks and uncertainties that may cause actual risks to vary significantly. These risks include market and competitive factors, and other risks described in the company's most recent annual report and/or in any of its other filings with the Securities and Exchange Commission. The company assumes no obligation to update the information in this release. Reference to the company's Web site above does not constitute incorporation of any of the information thereon into this press release.

Note to Editors: All company and product names mentioned may be trademarks or registered trademarks of their respective holders and are used for identification purposes only.

KT/np

    CONTACT: T&O Public Relations for M-Systems
             Christine Welch (editorial), 949/224-4022
             cwelch@topr.com
                or
             KCSA Worldwide for M-Systems
             Evan Smith or Jeff Corbin (investors), 212/896-1251 or 
              212/896-1214        
             esmith@kcsa.com or jcorbin@kcsa.com   
                or
             Toshiba America Electronic Components Inc.
             Lisa Nemec (editorial), 949/455-2293
             lisa.nemec@taec.toshiba.com