FLSH M Systems Flash Disk

Orange, M-Systems (NASDAQ: FLSH) and Oberthur Card Systems today announce a partnership to launch the world's first 512 megabyte high-density SIM Card. This SIM card will have 8000 times more memory than standard 64 kilobyte SIM cards. The half-gigabyte SIM card has been produced by Oberthur Card Systems and is empowered by M-Systems' platform. Orange will be the first mobile network operator (MNO) to offer multimedia content services to subscribers via 512 megabyte SIM cards. The high density SIM will be rolled out across Orange European markets in 2006, commencing in France, where it will be initially available on an LG U8210 handset. The SIM will transform the mobile phone into a true multimedia player, capable of securely storing a music library containing up to 125 songs, three full-length movies, or 80 Java games. The 512 megabytes offering will enable subscribers to store comprehensive SMS, MMS and e-mail archives, complete with attachments, in addition to complete PIM and calendar functionality. The new SIM card is also a highly-secure authentication device connecting the subscriber to the network. At the same time, it enables secure portability of sensitive personal data and DRM-protected files, permitting instant access to additional services and content. M-Systems' MegaSIM(R) offers new opportunities for MNOs to change the way they interact with their customers and further differentiate themselves from competitors. For handset manufacturers benefits include better scalability of memory for subscribers to enjoy and benefit from an enhanced mobile experience. Frank Boulben, Executive Vice President, Brand Consumer Marketing, Orange, comments: "This collaboration demonstrates our continued commitment to delivering an end-to-end multimedia solution to our customers. This high density SIM brings with it a range of customer benefits: portability, choice, security and personal spontaneity, we expect the value delivered to our customers through this technology will be empowering. The ultimate end-user experience is set to chart previously unexplored territory, something we are very excited about." Alain Jarre, Mobile and Solutions Marketing Director at Oberthur Card Systems added: "Oberthur Card Systems is once again at the forefront of the smart card industry innovation. In this pioneer experience, we are particularly proud once again to be supported by Orange. Last year, Orange was already a visionary by being the first wireless group involved in the GIGAntIC project. After 12 mouths of hard work, we are the only players to present mobile services powered the world's first 512 megabytes high-density SIM Card." A high-density SIM with abundant flash-based storage offers a secure, removable, standardised, and accessible memory resource. This alleviates the need to design additional card slots in handsets to provide scalable storage in multimedia handsets. The high density SIM card allows subscribers to take their environment and personal settings with them when they upgrade their phone and enables far wider scope for what can be stored on the SIM with its substantially increased capacity. "With more than 1.5 billion SIM cards expected to be sold next year, there is a massive opportunity in the market for a secure MNO-provisioned SIM card with high-density memory," said Simone Cavallo, general manager of M-Systems' MNO division. "We are pleased that our MegaSIM platform, incorporating M-Systems' TrueFFS(R) flash file management, will provide a robust mechanism for generating new services, content, applications and, of course, revenue streams, making mobile services smarter." High-speed data interfaces enhance overall USIM performance and high level cryptographic security can provide security at levels never previously considered feasible. This increased functionality will give mobile network operators like Orange, much greater scope to tailor products and services, helping to address the key industry challenge of reducing customer churn, and offer an optimal storage solution for the delivery of secure mobile multimedia content and services. For more information and demonstrations, please visit Oberthur Card Systems' booth at the 3GSM World Congress (Hall 8 - Booth B34) from the 13th to the 16th of February 2006 at Fira de Barcelona, Spain. About Oberthur Card Systems With sales of 500.8 million Euros in 2005, Oberthur Card Systems is one of the world's leading providers of card-based solutions, software and applications including SIM and multi-application smart cards as well as services ranging from consulting to personalization. Innovative products, security expertise and high quality services ensure Oberthur Card Systems' strong positioning in its main target markets: -- Payment & Services: 53% of 2005 revenues. World leader and number one supplier of Visa and MasterCard payment cards -- Mobile Communications: 32% of 2005 revenues, with open and interoperable solutions based on Java(TM) technology. -- Identity: strong positions in ID projects throughout the world -- Multimedia: leading position in the Pay-TV market with an end-to-end expertise in the value chain: software development, manufacturing and personalization -- Transit: focus in the high-end segment with a microprocessor-based offer Close to its customers, the company benefits from an industrial and commercial presence across all five continents. Listed on the Euronext Stock Exchange (ISIN: FR0000124133) since July 2000, Oberthur Card Systems is a subsidiary of the Francois-Charles Oberthur Group. For more information, visit www.oberthurcs.com About LG Electronics, Inc. LG Electronics (KSE: 06657.KS) is a global leader in providing cutting-edge, convergent electronics, information and communications products designed to meet the diverse needs of fast-changing consumers. With consolidated sales of US$37.7 billion and overseas sales of US$ 32.6 billion (86% of total sales), LG Electronics employs more than 70,000 employees in 76 subsidiaries located in 39 countries and operates four business units including Mobile Communications, Digital Appliance, Digital Display and Digital Media. LG Electronics Mobile Communications Company is the world's leading manufacturer of WCDMA (UMTS), CDMA and GSM handsets, and the fastest growing manufacturer of mobile phones worldwide. The company provides a total range of wired and wireless solutions, and is rapidly establishing a global presence as it cultivates international market share in 3G handsets. For more information, please visit www.lge.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(R)) U3 USB smart drives for personal, portable computing -- M-DOC embedded flash drives for mobile handsets and consumer electronics devices -- M-SIM MegaSIM(R) series high-density SIM cards and M-SIM M.MAR(R) series SIM cards and highly secure cards (available both from M-Systems and its subsidiary Microelectronica) -- M-Card, high-quality memory cards for mobile handsets and digital cameras -- M-Trust (formerly Xkey(R)) end-to-end enterprise access, control and management solution for USB flash drives and other removable media -- M-SSD (formerly FFD(TM)) rugged solid state disks for mission-critical applications -- M-Module (formerly DiskOnChip(R) modular family) modular flash storage for embedded systems -- M-Safe (formerly SuperMAP(R) family) secure hardware and software crypto cores More information is available online at www.m-systems.com. M-Systems. Made smarter. 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.