M-Systems and McAfee Team Up on Secure Virus-Free Mobile Communications

The combination of McAfee’s VirusScan® Mobile software and M-Systems’ MegaSIM® platform for high density SIM cards is set to protect mobile subscribers

McAfee, Inc. (NYSE: MFE), the leading dedicated security technology company, and M-Systems (Nasdaq: FLSH), a leader in smart personal storage, today announced an anti-virus-on-SIM application for deployment on high density SIM cards powered by M-Systems’ MegaSIM® platform. This combination of high-density storage and advanced anti-virus technology is designed to allow virus-free operation of mobile handsets and gives mobile network operators (MNOs) the ability to protect mobile handsets and subscribers, enabling smarter mobile services.

As network-connected smartphones and high-end feature phones become more popular, so has the need to protect the devices and subscribers from malicious attacks. McAfee VirusScan® Mobile on high-density SIM cards powered by M-Systems’ MegaSIM platform is designed to ensure that subscribers’ personal data on a mobile device is secure and cannot be maliciously altered, accessed or copied.

Leveraging M-Systems’ flash expertise with its field-proven M-Safe™ crypto core technology, globally trusted in millions of smart cards, the MegaSIM platform, incorporating M-Systems’ TrueFFS® flash file management, combines high-density flash storage (64 megabytes to 1 gigabyte), processing power, high-speed data protocols and crypto functionality. M Systems’ MegaSIM platform far enhances typical SIM architecture while maintaining full compatibility with legacy industry standards. SIM cards powered by M-Systems’ MegaSIM platform, such as M-Systems’ M-SIM MegaSIM series, will provide MNOs with an intuitive, ubiquitous interface and a high-density, high-speed platform. By deploying these SIM cards, MNOs can increase revenue streams, while at the same time offer a new sales channel for software developers and a smarter mobile usage experience for subscribers.

“McAfee is pleased to collaborate with M-Systems in the development of innovative products that bring significant protection to mobile subscribers,” said Larry McAnallen, director of world wide mobile sales and business development for McAfee, Inc. “Like our industry leading anti-virus protection products for the IT market, we believe that this product will offer significant benefits to MNOs and mobile subscribers, whether they are corporate or private subscribers.”

“By offering high-density flash memory, smart card security, high performance and processing power all within the SIM, M Systems’ MegaSIM platform brings a unique value proposition to the mobile ecosystem,” said Simone Cavallo, general manager of M-Systems’ MNO division. “Cooperation with industry leaders like McAfee is a natural next step as it complements our MegaSIM platform’s value with a well known and respected brand in protection against viruses and malicious attacks, making mobile services smarter.”

McAfee VirusScan® Mobile and other mobile service-enhancing applications running on high-density SIM cards powered by M-Systems’ MegaSIM platform will be publicly demonstrated for the first time in M-Systems’ booth (Hall 2, Booth E38) at the 3GSM World Congress in Barcelona from Feb. 13-16, 2006.

About McAfee Mobile
McAfee currently supports more than 100 mobile devices that are in the hands of over 17 million consumers worldwide. With multiple years of experience gained developing mobile platforms and protocols with major operators and platform vendors, strong partnerships with mobile infrastructure providers, dedicated sales personnel, a dedicated mobile R&D organization, and a mobile threat research organization through McAfee AVERT™ Labs, McAfee in uniquely qualified and well positioned to meet the needs of manufacturers, operators, the enterprise market and end-users.

About McAfee, Inc.
McAfee, Inc., headquartered in Santa Clara, California the leading dedicated security technology company, delivers proactive and proven solutions and services that secure systems and networks around the world. With its unmatched security expertise and commitment to innovation, McAfee empowers home users, businesses, the public sector, and service providers with the ability to block attacks, prevent disruptions, and continuously track and improve their security. www.mcafee.com


About M-Systems
M-Systems 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, M-Systems creates, develops, manufactures and markets smart personal storage solutions for a myriad of applications targeting high growth markets. M-Systems’ product lines include:

* M-Drive (formerly DiskOnKey®) U3 USB smart drives for personal, portable computing
* M-DOC embedded flash drives for mobile handsets and consumer electronics devices
* M-SIM MegaSIM® series high-density SIM cards and M-SIM M.MAR® series SIM cards and highly secure cards (available both from
* M-Systems and its subsidiary Microelectr?nica)
* M-Card, high-quality memory cards for mobile handsets and digital cameras
* M-Trust (formerly Xkey®) end-to-end enterprise access, control and management solution for USB flash drives and other removable media
* M-SSD (formerly FFD™) rugged solid state disks for mission-critical applications
* M-Module (formerly DiskOnChip® modular family) modular flash storage for embedded systems
* M-Safe (formerly SuperMAP® family) secure hardware and software crypto cores

More information is available online at www.m-systems.com. M-Systems. Made smarter.

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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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