FREMONT, Calif. — (company press release) — M-Systems Flash Disk Pioneers Ltd. announced today that 3iLinux, a subsidiary of 3iNet, has selected DiskOnChip for its Universal Internet Box. 3iLinux provides OEMs and software developers a complete, ready-to-market Universal Internet Box (UIB) hardware and software platform (see… related story). The UIB provides the hardware and base software necessary, to companies interested in developing an Internet appliance. The base configuration of the UIB is a plastic enclosure containing a 386 processor, 8MB RAM, 8MB DiskOnChip flash disk, 2×16 LCD, push buttons, and a phone line or a network interface that includes FCC and CE approval. The software toolkit is based on a scaled-down Linux operating system with a modified kernel supporting DiskOnChip and an API to access the UIB hardware.

According to International Data Corporation, the worldwide market for IAs will exceed 89 million units, or $17.8 billion, in 2004, up from a market of 11 million units, or $2.4 billion, in 1999.

“We initially chose DiskOnChip for our Internet Fax Box system and we were so pleased with the results that we decided to use it in our latest product, the UIB. As a complete hardware and software memory sub-system, DiskOnChip provides us a complete storage solution ideally suited for an Internet appliance based on our design,” stated Carlos Salum, vice president of marketing, 3iNet. “The flexibility offered by DiskOnChip allows our customers to upgrade to higher capacities if needed without the need to redesign the board or the software driver.”

“3iLinux is revolutionizing the way people create Internet appliances using Linux,” said Chuck Schouw, president of M-Systems Inc. “This design-win reinforces DiskOnChip as the leading local storage solution for Internet appliances. DiskOnChip has been recognized in the Internet appliance industry as the chosen storage solution because of its ease-of-use, small size, flexibility and for saving valuable time to market.”

About 3iNet (www.3inet.com)

3iNet is Houston-based Linux Internet Applications provider. 3iNet provides Internet-enabled products and services. 3iLinux () is a subsidiary of 3iNet.

About M-Systems Flash Disk Pioneers Ltd. (www.m-sys.com)

M-Systems Flash Disk Pioneers Ltd. is a leading developer, manufacturer and marketer of innovative data storage products, known as flash disks, that are primarily used in Internet appliances, network infrastructure equipment and other embedded systems. The Company's flash disks provide the functionality of a mechanical hard drive on a solid-state silicon chip. M-Systems was first to bring to market a complete flash disk in a single die using breakthrough DiskOnChip Millennium technology. The Company's products are based on its patented TrueFFS technology, and include the DiskOnChip and Fast Flash Disk (FFD) families.

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