Integrated Technology Express (ITE) selects M-Systems’
diskonchip for new internet appliance reference design

FREMONT, Calif., Feb. 1, 2000 ¾ M-Systems Flash Disk Pioneers Ltd. (Nasdaq: FLSH), the leader in flash-based local storage solutions for the Internet Appliance (IA) and embedded markets, today announced that Integrated Technology Express, Inc. (ITE) of Taiwan, a pioneer in Windows CE systems integration, has selected M-Systems’ DiskOnChip as the local storage device for its new PBRD 2.12 reference platform for Internet Appliances, as well as Windows-based Terminals and POS (Point of Sale) applications.

As a pioneer in Windows CE systems integration, ITE provides various Windows CE-based reference designs to help OEMs (Original Equipment Manufacturers) to deliver cost-effective, reliable and quality products to market in a timely fashion. Reference designs provide OEMs and systems integrators a basis for products that can either be customized or taken directly to mass production. The newest member of ITE’s Windows CE reference designs, the Platform Builder Reference Design (PBRD) 2.12, utilizes M-Systems’ DiskOnChip for boot up and local storage and is a ready-to-use platform solution for Internet appliances, as well as WBT (Windows-based Terminal) and POS (Point of Sale) applications.

In addition to M-Systems’ DiskOnChip, the PBRD 2.12 includes Hitachi’s powerful SH7709A CPU and ITE’s IT8181 LCD/VGA controller and IT866/IT8673 peripheral I/O chips. It delivers high performance, high display quality, cost effectiveness, compactness, flexibility to expand and is designed for Windows CE vertical applications and embedded devices.

“I am very happy to be able to include M-Systems’ DiskOnChip in our reference design,” said Steven Huang, senior vice president, ITE. “With strong support for DiskOnChip within Windows CE, our reference design would have been incomplete without it. In the PBRD 2.12, DiskOnChip can be used for such functions as boot up, BIOS storage, persistent registry entry storage, and driver and other file storage. By including DiskOnChip, product developers using our reference design have access to the industry standard for flash-based local storage.”

“We are pleased that DiskOnChip is a part of ITE’s newest reference design,” said Aryeh Mergi, executive vice president, marketing and sales, M-Systems, Ltd. “Now, an even greater number of product developers will be able to experience the ease of integrating DiskOnChip into their Internet appliance, POS & Windows-based terminal designs.”

About Integrated Technology Express, Inc.

Integrated Technology Express, Inc. (ITE) is in the business of designing and selling high-integration chips that allow engineers to design compact and low power products. ITE’s System Integrator division assists OEMs to quickly develop advanced Windows^R CE products. ITE’s expertise in system software development, IC design capability and its experienced service organization are key to the rapid development process ITE provides. The company has expertise in the areas of computer core-logic, peripheral, LCD VGA and power management, and has been engaged in strategic development plans with IC manufacturers and design houses throughout Europe, Japan and the USA.

Headquartered in Hsinchu Science-Based Industrial Park, Taiwan, ITE currently employs 190 employees with the engineering and development team made up 42 percent of the overall operations. ITE has a subsidiary in Sunnyvale, California, and has sales offices in Round Rock, Texas, Beijing China and Taipei Taiwan. Customer support and information about ITE and its full line of products can be found at http://www.ite.com.tw.

About M-Systems Flash Disk Pioneers Ltd.

M-Systems Flash Disk Pioneers Ltd. (Nasdaq: FLSH) develops, manufactures and markets a broad range of flash data storage solutions using its patented TrueFFS technology. Leading the market for flash-based local storage applications, M-Systems is the first to bring a complete flash disk in a single die using its breakthrough DiskOnChip Millennium technology. M-Systems products include the DiskOnChip, Fast Flash Disk (FFD), CompactFlash, IDE Flash Disk and Flash PC Cards. For more information, contact M-Systems at 8371 Central Avenue, Newark, Calif. 94560. Telephone: 510-494-2090, e-mail: info@m-sys.com and on the Internet: http://www.m-sys.com.