M-Systems Partners with McAfee to Bring McAfee VirusScan Capabilities

    Business Editors/Technology Writers

    SUNNYVALE, Calif.--(BUSINESS WIRE)--March 24, 2005--Continuing its commitment to enable secure remote work solutions, M-Systems (NASDAQ:FLSH) has partnered with McAfee(R), Inc. (NYSE:MFE) to bring its McAfee VirusScan(R) anti-virus security capabilities to the Xkey(R) product line. Corporations instituting the Xkey solution will not only reap the benefits of enhanced security capabilities offered by the device, but will also have access to McAfee's renowned security applications. For the first time, users and corporations will have a reliable USB flash drive that includes a dedicated anti-virus application. The additional security options will further assure consumers and corporations that data stored and extracted from the mobility appliance will have complete up-to-date virus protection.
    "The lack of an up-to-date anti-virus solution has always been a prime concern for IT managers when employees are working outside of the company network," said Nimrod Reichenberg, director of marketing for M-Systems' Xkey. "Our Xkey mobility appliance was designed to enable resident applications, such as McAfee's, eliminating the need to verify that a maintained anti-virus application is installed on every remote machine. This empowers users to securely move beyond the perimeter of the enterprise for full functioning, secure storage and computing capabilities on the go."
    The addition of McAfee VirusScan technology is virtually invisible to the user and has no impact on device performance. Once the device is inserted into the USB port, all files residing on the secure drive, as well as the host machine's memory will be automatically scanned. Additionally, when the user is online, the drive will receive automatic updates from McAfee maintaining up-to-date virus protection.
    "Allowing users to carry our McAfee VirusScan solution with them on the Xkey ensures their working environment is protected regardless if they are working from their home PC or abroad," said Todd Gebhart, senior vice president, Global Service Provider and OEM, McAfee. "The device has pushed the technology to a place where it can host applications, and we are happy to add McAfee VirusScan anti-virus protection expertise to this new model of mobile endpoint security."
    McAfee-enabled Xkey devices will be available early Q2 2005. To identify the solution for personal or corporate use contact XkeySales@m-systems.com.

    About Xkey

    Xkey is an enterprise-ready software solution that extends M-Systems' DiskOnKey and incorporates everything needed to deploy, manage and secure portable storage devices. Xkey offers unique solutions for corporations looking to secure their remote computing environments and increase their employee mobility and productivity. More information on Xkey is available at www.xkey.com.

    About McAfee Inc.

    McAfee, Inc., headquartered in Santa Clara, Calif., a worldwide leader in Intrusion Prevention and Risk Management solutions, delivers proven security products and services to help customers effectively balance the competing priorities between business needs and security requirements. McAfee applies profound security expertise toward helping companies, government agencies and consumers block attacks, prevent disruptions, and continuously track and improve the security of their systems and networks. This risk management approach results in absolute confidence. For more information, McAfee, Inc. can be reached at 972-963-8000 or www.mcafee.com.

    About M-Systems

    M-Systems designs, develops and markets innovative flash data storage solutions for digital consumer electronics markets. M-Systems primarily targets two fast-growing digital consumer electronics markets: the USB (universal serial bus) flash drive market with its DiskOnKey(R) product and the multimedia mobile handset market with its Mobile DiskOnChip(R) products. For more information, please contact M-Systems at www.m-systems.com.

    All company and product names mentioned may be trademarks or registered trademarks of their respective holders and are used for identification purposes only.

    NOTE: 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, risks related to: the effect of global economic conditions in general and conditions in the Company's 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 the Company's and its customers' inventory levels and in 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 the Company's and its customers' products and markets; development, release and sales of new products by strategic suppliers and customers; development and growth of anticipated markets for the Company's and its customers' products; and other risk factors detailed in the Company's most recent annual report and/or in any of its other filings with the Securities and Exchange Commission. All forward-looking statements included in this release are based upon information available to the company as of the date hereof. The Company assumes no obligation to update the Information in this 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 the Company's website above does not constitute incorporation of any of the information thereon into this press release.

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CONTACT: Editorial Contacts for M-Systems O'Leary and Partners Public Relations Kristine Hernandez/Angie Tucker (North America) 949-224-4036/4035 khernandez@olearypr.com / atucker@olearypr.com or Harvard Public Relations Stephen Gaynor/Lindsey Brookes (Europe) +44 (0)-20-8564-6323 stephen.gaynor@harvard.co.uk lindsey.brookes@harvard.co.uk or Investor Contacts for M-Systems KCSA Worldwide Jeff Corbin/Lee Roth, 212-896-1214/1209 jcorbin@kcsa.com / lroth@kcsa.com

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: HARDWARE COMPUTERS/ELECTRONICS SOFTWARE INTERNET E-COMMERCE PRODUCT MARKETING AGREEMENTS SOURCE: M-Systems

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