FLSH M Systems Flash Disk

Microelectronica, an msystems (NASDAQ: FLSH) company specializing in the development and manufacturing of smart cards, as well as smart card operating systems and applications, is the latest company to join the ranks of SIMalliance, the world's leading consortium of SIM manufacturers. Commenting on its latest member, SIMalliance chairman Christophe Dolique said: "Microelectronica is joining an association that, over the past five years, has become one of the world's foremost commentators in the mobile business. By operating outside the singular commercial interests of any individual SIM card player, SIMalliance has been able to pinpoint the mission critical services coming downstream and help steer their development to meet the practical needs of the market." With key customers in Europe and Latin America, Microelectronica will extend the presence and reach of an association whose membership currently accounts for some 80% of SIM sales worldwide. Commenting on joining the alliance, Simone Cavallo, general manager of the msystems MNO division said: "With a new generation of high-potential SIM applications now set to enter the mobile ecosystem, the entire industry is crying out for innovative thinking and clear direction. By joining this unique association, which is the leading proponent for SIM-based development, we're convinced that we are better positioned to influence and to contribute to developments in the industry." Microelectronica joins existing SIMalliance members: Gemalto, Giesecke & Devrient, Incard, Oberthur Card Systems, Prism, Sagem-Orga and Xponcard. About SIMalliance SIMalliance is the world's leading consortium of SIM interest groups. Representing approximately 80% of the global SIM card market, SIMalliance steers industry innovation and champions the high value business benefits that SIM services deliver. Gemalto, Giesecke & Devrient, Incard, Microelectronica, Oberthur Card Systems, Prism, Sagem-Orga and Xponcard are all SIMalliance members. visit www.simalliance.org or email info@simalliance.org for more information About Microelectronica and msystems Microelectronica is an msystems (Nasdaq: FLSH) company specializing in the development and manufacturing of smart cards, operating systems and applications for smart cards. Its parent company, 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 www.m-systems.com. 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.