M-Systems' DiskOnChip Designed Into AutoPC, Product Planned to Enter Production in May

    FREMONT, Calif.--March 31, 2003--M-Systems , a leader in flash-based data storage products, today announced that Hyundai Mobis (KSE:12330) has incorporated DiskOnChip into its AutoPC.
    Planned for production in May, AutoPC from Hyundai Mobis is a computer for automotive use that runs the Windows CE for Automotive operating system. Using Global Positioning System (GPS) and wireless communication technology, AutoPC delivers telematics functionality by providing real time traffic information, emergency rescue service support, remote car diagnostics, on-the-go Internet access and many other mobile services. Most of the features of the device can be controlled with voice commands, leading to a true "hands free" experience.
    M-Systems' DiskOnChip is being used to store the operating system, necessary applications and user data. Like the AutoPC, DiskOnChip has been engineered to withstand the harsh environmental conditions found in automotive applications such as severe vibration, electronic noise and temperature extremes.
    According to Shin Hyun Jun, senior manager of the AutoPC engineering team at Hyundai Mobis, "DiskOnChip is the ideal local storage device for our AutoPC. In addition to its outstanding reliability, it was easy to integrate, and it enabled a lower cost structure within our AutoPC."
    "The AutoPC from Hyundai Mobis is an excellent application of the Microsoft Automotive Platform and our DiskOnChip," said Randall Yang, president of M-Systems Asia. "Native support for DiskOnChip within the Microsoft operating system contributes to the stability of this design -- a very important factor for the automotive industry."
    "By combining the latest in technology, Hyundai Mobis is bringing a very exciting new product to the automobile industry," said Peter Wengert, marketing manager, Microsoft.

    About Hyundai Mobis

    As a leading specialist in auto parts that plans to lead the car industry in the 21st century, Hyundai Mobis manufactures automation and information systems for car safety, comfortable driving and convenience. Hyundai Mobis focuses on modules and systems (chassis module, cockpit module, ABS, air-bag system, Telematics and electronic devices). More information about Hyundai Mobis can be found on the Internet at www.mobis.co.kr.

    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, please contact M-Systems at www.m-sys.com.

    Note to Editors: A high-resolution photo image of the AutoPC from Hyundai Mobis containing M-Systems' DiskOnChip flash disk product can be found on the Internet at www.m-sys.com/images/prs/HyundaiMobis.jpg.

    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, risks related to: the effect of global economic conditions in general and conditions in the Company's 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 the Company's and its customers' inventory levels; 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 the Company's and its customers' products and markets; development, release and sales of new products by strategic suppliers and customers; development and growth of anticipated markets for the Company's and its customers' products; and other risk factors detailed 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.