M-Systems' DiskOnChip Selected as the Local Storage Device for In-Car Infotainment PC Being Developed Jointly by Bcom, ST & Ford Lio Ho

Up to 100K Units Expected be Sold Annually Throughout the World

M-Systems (Nasdaq:FLSH), a leader in flash disk data storage products, today announced that its DiskOnChip(TM) flash disk product has been selected as the local data storage device in a new line of in-car personal computers (PCs) being developed jointly by Bcom Electronics, STMicroelectronics (NYSE:STM) and Ford Lio Ho of Taiwan, a joint venture between Taiwan's Lio Ho Group and U.S.-based Ford Motor Group (NYSE:F).

The companies are working together to create an "all-in-one" head unit known as the Car Infotainment PC for the global automobile market. The Car Infotainment PC will combine multimedia, telecommunications and information systems to provide integrated features that include a digital cellular phone, voice recognition, a digital radio, speech synthesis and CD/DVD player, in addition to advanced navigational capabilities.

M-Systems' 8MB, 16MB and 32MB DiskOnChip flash disk products are embedded in the Car Infotainment PC to store Windows CE 3.0 and the browser. With the native support for DiskOnChip within Microsoft Windows CE, Bcom did not need to expend any additional resources during their integration efforts. Additionally, by storing the operating system and application elements on the DiskOnChip, Car Infotainment PC users will benefit from the ruggedness and proven reliability of M-Systems' flash disk technology.

"Auto manufactures are looking for highly reliable and functionally rich embedded solutions to power their entertainment systems," said Keith White, senior director of marketing, Embedded and Appliance Platforms Group at Microsoft Corp. "By choosing M-Systems' DiskOnChip in combination with Windows CE 3.0, the Lio Ho Group and the Ford Motor Group will be able to quickly and easily offer their customers a broad range of rich and innovative in-car services."

"By storing a browser on M-Systems' flash disk, we are able to make our system much more than something that just connects to the net and provides global positioning," said Giuseppe Izzo, senior manager, audio and power segment, technical marketing and business development, Asia Pacific, STMicroelectronics. "The navigation system, for example, can work in conjunction with a GSM phone and broadcast traffic information to direct the drivers to their destination, book parking places before arrival and call for immediate help in the case of an accident."

"DiskOnChip is the perfect storage device for applications like our Car Infotainment PC," said Andrew Hou, president of Bcom. "Its small size, ease of integration and dependable operation helped all of us to advance this exciting new technology that will quickly become mainstream in the computer market. The Car Infotainment PC will be available in Taiwan by the end of the year, then in China and then worldwide, where we project 50,000-100,000 units will be sold in the first year."

"M-Systems is proud to have its DiskOnChip technology associated with Bcom, Ford Lio Ho and ST for this exciting project," said Barry Doong, president of M-Systems Asia. "Since DiskOnChip provides the highest degree of data reliability, even within extreme temperatures, extensive vibrations and other harsh environmental conditions found in cars, we are confident that it is the ideal choice for this advanced application."


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