msystems(TM) and Data I/O Corporation Announce Mass Programming Solution for mDOC H3 Embedded Flash Drive Products


SUNNYVALE, CA and REDMOND, WA September 27, 2006 - msystems (NASDAQ: FLSH), a leader in smart personal storage, and Data I/O® (NASDAQ: DAIO), the leading provider of manual and automated programming systems, today announced the availability of a mass production programming solution for mDOC H3. The msystems' version of mDOC H3 is the industry's first multi-source embedded flash drive (EFD) specifically designed for mobile handset vendors and consumer electronics manufacturers.

Data I/O's FlashCORE(TM) family of manual and automated programming solutions, utilized by mobile handset vendors and consumer electronics manufacturers to load operating system and application code onto flash memory chips, has now been adapted and optimized to program mDOC H3 devices at very high speeds. This enables mass adoption of mDOC H3 in mobile handsets and consumer electronics devices.

"With all of the activity surrounding mDOC H3 from msystems, Hynix and Toshiba, we immediately recognized the need for a mass production programming solution for mDOC H3. Our solution, developed in concert with msystems, is part of a bigger picture being laid out around this smart embedded flash drive," said Harald Weigelt, VP of Worldwide Sales at Data I/O Corporation. "We are pleased that the performance of H3 technology is well matched with our FlashCORE programming platform so that our mutual customers can increase their factory throughput," said Kelly Hirsch, Data I/O's Chief Technologist.

Data I/O, a leading provider of programming solutions for the handset and consumer electronics markets, is the first manufacturer to provide full mDOC H3 programming support.

"Programming solutions, like this one from Data I/O, are mandatory for mass production," said Noam Kedem, Vice President of Marketing for msystems. "With Data I/O's solutions, customers can quickly manufacture mDOC H3-based devices in mass quantities, further optimizing design and production costs. By working together, we are all changing the way the latest flash technology is seamlessly getting integrated into new mobile handsets and consumer electronics devices. Our collaboration with Data I/O means 'Programming made smarter."

DOC H3 products from msystems, Hynix and Toshiba will be available in quantities suitable for mass production later this year.

About mDOC H3
mDOC H3 is the DOC H3 product marketed by msystems. DOC H3 is a self-contained EFD with msystems TrueFFS® flash management software running internally as firmware from within the in-chip flash controller. This architecture is designed to minimize overall system integration complexity and help reduce end-product design cycles by offering mobile handset and consumer electronics device manufacturers a virtually plug-and-play, bootable EFD.

About Data I/O
Celebrating over 34 years of innovative leadership in the device programming industry, Data I/O Corporation® (NASDAQ: DAIO) provides manual and automated device programming systems that specifically address the requirements of engineering and manufacturing operations. FlashCORE(TM) is the architecture behind a family of Flash programmers that deliver the highest throughput and lowest cost per programmed device. For Flash, microcontroller and logic device support, the MultiSyte and UniSite families provide universal support and versatility to address a wide variety of programming needs. Data I/O Corporation is headquartered in Redmond, Washington, and has sales and service offices worldwide. For more information, see www.dataio.com or call 800-426-1045.

About msystems
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. msystems product lines include:

o mDrive (formerly DiskOnKey®) U3 USB smart drives for personal, portable computing
o mDOC embedded flash drives for mobile handsets and consumer electronics devices
o mSIM MegaSIM® series high-density SIM cards and mSIM M.MAR® series SIM cards and highly secure cards (available both from msystems and its subsidiary Microelectronica)
o mCard, high-quality memory cards for mobile handsets and digital cameras
o mTrust (formerly Xkey®) end-to-end enterprise access, control and management solution for USB flash drives and other removable media
o mSSD (formerly FFD(TM)) rugged solid state disks for mission-critical applications
o mModule (formerly DiskOnChip® modular family) modular flash storage for embedded systems
o mSafe (formerly SuperMAP® family) secure hardware and software crypto cores

More information is available online at m-systems.com. msystems. made smarter.

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