Texas Instruments Integrates M-Systems’ DOC H-Series Embedded Flash Drives into its Aureus™ High Speed Encoding Solution for Car Audio

DOC H-Series products provide automotive audio system designers with an easy-to-integrate, stable path to cost effective NAND flash storage technology

2006 International Consumer Electronics Show (CES), Las Vegas, Jan. 4, 2006 , M-Systems (Nasdaq: FLSH), an industry leader and innovator of flash-based data storage devices, today announced that Texas Instruments (TI) has integrated M-Systems’ DOC H-Series embedded flash drive (EFD) into TI’s high-speed encode and playback solution for car audio applications.

With its high speed encode and playback solution, Texas Instruments provides a comprehensive software suite running on an Aureus™ DA710 audio digital signal processor (DSP) to provide a feature-rich, cost-effective software and hardware solution for automotive entertainment applications.

DOC H-Series EFDs provide a highly reliable and robust embedded memory solution to answer the growing demands for solid-state storage within automotive audio systems. The unique combination of DiskOnChip® EFD architecture, MLC NAND flash media and M-Systems’ TrueFFS® flash management technology results in a cost effective, high-performance product with a high level of reliability suited for the demanding profile of automotive audio applications.

With the help of DOC H-series, automotive audio application designers can extend the life of their platform and practically future-proof its storage by providing a seamless migration between NAND generations, while minimizing associated design risks. DOC H-series offers an easy transition to NAND technology by addressing inherent shortcomings of raw NAND media, and frequent NAND architecture changes. DOC H-Series virtually does away with the traditional trade-offs associated with migration to new storage technologies at the risk of platform stability by providing a complete, standardized interface solution, based on the most appropriate NAND flash media per given density.

“The automotive audio and infotainment market is demonstrating a dramatic increase in demand for solid-state multimedia-related storage. Cars’ dashboards are essentially being reinvented as a hub of quality multimedia entertainment,” said Dave Maples, Performance Audio Manager, TI. “For developers of such car audio systems, a long product life span as well as ruggedness, endurance, high performance and reliability are essential requirements. DOC H-series presents an attractive, easy-to-integrate storage solution, making it a perfect pairing partner to our DA710-based high-speed encode and playback development platform for car audio.”

“Texas Instruments is a leader and trendsetter with a long history of collaboration with M-Systems based on our DiskOnChip architecture,” said Noam Kedem, vice president marketing for M-Systems. “By supporting M-Systems’ DOC within their DA710-based car audio development platform, TI is enabling automotive audio system designers easy access to a high density, onboard flash storage solution which meets high reliability requirements at cost-effective price points.”

About M-Systems
M-Systems develops, manufactures and markets innovative flash-based data storage solutions for consumer electronics and embedded markets. The Company targets the fast growing multimedia mobile handset market with its DiskOnChip® and MegaSIM™ products and the popular USB flash drive market with its DiskOnKey® product. More information about M Systems is available online at www.m-systems.com.

Note to Editors: High-resolution photo images of M-Systems’ products can be found on the Internet at www.m-systems.com/site/en-US/Corporate/PressRoom/ImageLibrary

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Aureus is a trademark of Texas Instruments. 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 M Systems’ 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 M-Systems’ 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 M Systems’ 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 M-Systems’ and its customers’ products; and other risk factors detailed from time to time in M-Systems’ filings with the Securities and Exchange Commission. M-Systems 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 M-Systems’ website above does not constitute incorporation of any of the information thereon into this press release.

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