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msystems™ Announces Availability of High-Capacity SIM Cards from Its Microelectronica Subsidiary


Mass production from Microelectronica facility to include 1-gigabyte mSIM MegaSIM® series high-capacity SIM cards by year’s end

SUNNYVALE, Calif., Sept. 27, 2006, msystems (NASDAQ: FLSH), a leader in smart personal storage, today announced the availability of high-capacity mSIM MegaSIM cards through its Microelectronica subsidiary.

In addition to the currently available 128-megabyte, 256-megabyte and 512-megabyte msystems MegaSIM SIM cards, 1-gigabyte MegaSIM products, planned for commercial availability by the end of the year, will be mass produced at the Company’s Microelectronica facility in Spain.

“Leveraging the know-how and manufacturing capabilities acquired through Microelectronica, we are able to deliver our first commercial, high-capacity SIM cards manufactured and offered by msystems,” said Simone Cavallo, general manager of the Mobile Network Operators division at msystems. “Our 1-gigabyte card represents a breakthrough in SIM card technology. This unique achievement further strengthens our leadership and innovative position in the high capacity SIM market. With the wide range of SIM card capacity choices available from msystems and its Microelectronica subsidiary, mobile network operators can now begin to implement new business models and capitalize on new revenue streams.”

The unique features of MegaSIM enable the creation of new revenue opportunities for mobile network operators (MNOs) and the delivery of increased value to subscribers through new services, content and applications. For example, storing downloaded data directly onto the SIM card, MNOs can control content distribution with built-in DRM support associated with the customer’s unique subscriber ID. MegaSIM is well suited for DRM related solutions and provides a high level of flexibility to the subscriber. The new 1-gigabyte SIM card will allow users to securely store thousands of songs or hundreds of high resolution photos, as well as personal productivity data and other content of their choice.

About mSIM MegaSIM Series High-Capacity SIM Cards from msystems
The mSIM MegaSIM series, a family of secure, high-capacity SIM cards, combines the flash expertise of msystems and its TrueFFS® flash management system, its field-proven mSafe™ crypto core technology, globally trusted in tens of millions of smart cards and Microelectronica’s smart card expertise and top-of-the-line secure manufacturing capabilities. With high-capacity flash storage (64 megabytes to 1 gigabyte), independent processing power, high-speed data protocols and crypto functionality, MegaSIM technology is set to transform the SIM into a unique platform which combines SIM level security, high capacity storage and the ability of the mobile network operator (MNO) to provision storage on any MegaSIM-empowered handset. This combination accommodates the ever-growing personal mobile storage needs of subscribers.

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: A high-resolution photo image of the mSIM MegaSIM series high-capacity SIM card product from msystems is available online at High-resolution photo images of other msystems products can be found on the Internet 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: 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.


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