AMD and M-Systems to Collaborate On High-Density Embedded Storage Solutions for Mobile Markets

-- Collaboration to Combine AMD's Industry Leading Flash With M-Systems' Award-Winning DiskOnChip(R) Technology to Deliver High Performance Data Storage Solutions

-- AMD to Adopt M-Systems' Flash Data Storage Technology in Strategic Agreement

AMD (NYSE:AMD) and M-Systems Flash Disk Pioneers Ltd. (Nasdaq:FLSH) today announced a strategic agreement to jointly develop sophisticated high-density flash data storage solutions for the rapidly growing mobile data storage market.

Building on AMD's leadership in manufacturing, packaging and flash technology; and M-Systems' award-winning DiskOnChip(R) technology, this collaboration is intended to create embedded data storage products optimized for high-performance mobile and other applications.

Under the terms of the agreement, the two companies will jointly develop and market flash data storage solutions. The combination of AMD's advanced low power flash with M-Systems' widely supported and easy-to-use TrueFFS(R) (True Flash File System) technology is expected to create solutions which offer high-performance, small form-factors and an extremely cost-effective interface.

This suite of products will be designed to offer the functionality and ease-of-use of a hard drive, with the superior speed, performance, low power consumption and reliability of AMD's Flash memory.

Cellular telephones, wireless devices, hand-held PCs, automotive PCs and other mobile products that need to quickly store and retrieve large amounts of data, can greatly benefit from the small form factor and cost-effective interface of the solutions the two companies plan to develop. Offering integrated security features with extensive data storage capabilities, these products will be designed for mobile-commerce applications such as the secure digital music initiative.

"AMD believes that there is a burgeoning market for high-capacity embedded data storage devices in advanced portable products," said Walid Maghribi, AMD's senior vice president and president of the company's Memory Group.

"The growing need for small, low-power, rugged and secure storage solutions that are capable of holding large quantities of data, audio and video files, represents a tremendous opportunity for flash memory. AMD has partnered with M-Systems to develop this new flash-based data storage solution to address the mobile market's unique needs."

"We chose to adopt M-Systems' DiskOnChip technology because of its combination of the TrueFFS software, a unique controller with highly integrated security features, and their ability to provide a comprehensive solution," added Maghribi.

"We are elated to enter into a partnership with AMD, a company that has earned the reputation for delivering extremely reliable flash memory products to the market," said Dov Moran, president and CEO of M-Systems. "AMD's expertise in flash memory and knowledge of the mobile market space, coupled with M-Systems' ability to offer an extremely reliable high-capacity storage solution to applications demanding very high performance, makes this partnership ideal for this venture."


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