msystems(TM) and LG Electronics Offer More to Mobile Subscribers and Network Operators with New, 3G Multimedia MegaSIM-Supporting Handsets


The LG U830 Multimedia Clamshell Handset, Supporting msystems' 1GB MegaSIM card, Enables New Services and Mobile Content

KFAR SABA, Israel & SEOUL, South Korea--msystems (NASDAQ:FLSH), a leader in smart personal storage, and LG Electronics (LG), a global leader in consumer electronics and mobile communications, today announced that the new 3G multimedia model U830 handset will deliver a new range of powerful capabilities to subscribers and mobile network operators (MNOs) with support for msystems' MegaSIM card.

The MegaSIM-supporting LG U830 is a 3G mobile handset with a host of impressive features like a two megapixel camera, 200MB of internal memory, Bluetooth (A2DP/AVRCP) connectivity and a MP3/AAC/WMA media player. With up to 1GB of additional flash memory provided by a MegaSIM card, the LG U830 has the storage capacity to support this functionality within a slim design. Sporting a clamshell design, the phone will soon be released as part of the stylish Chocolate series.

With the MegaSIM card, MNOs can deliver compelling new services and mobile content to the LG U830, which can then provide the means to realize new revenue streams. The abundant storage capacity, advanced security features and additional processing power found in the U830 handset with the MegaSIM card enable services like:

o secure downloading of content, audio and video clips

o flexible DRM, including on-card rights management

o full PIM functionality

o storage of new applications for subscriber activation

o MNO based personalization and branding

o personal storage for user-generated content such as large phone directories and high-resolution photos

o the ability to customize services based on subscriber tastes and habits

"In our quest to offer cutting edge mobile technology, we are continually adding the most advanced features to our handset designs. The MegaSIM card from msystems, representing one of the most impressive achievements in mobile storage technology, is an outstanding addition to the long list of features that we offer on our mobile phones," said Jae Bae, executive vice president of mobile communications company of LG Electronics. "With the high capacity, power and security found in MegaSIM, we hope to enable a new world of mobile content and services for our customers. We plan on launching additional MegaSIM-supporting handsets in 2007."

"We are very happy to collaborate on MegaSIM-supporting phones with LG Electronics, producers of some of the most advanced handsets in the industry," said Eytan Pisetzky, vice president of marketing for the Mobile Network Operators division at msystems. "By including msystems' MegaSIM card in the U830, MNOs can provision up to 1GB of secured memory that is directly linked to the SIM card, enabling advanced m-commerce applications as well as convenient storage for photos, video clips, music and other files."

The U830 multimedia mobile phone from LG Electronics with msystems' 1GB MegaSIM card will be demonstrated during CARTES 2006, 7-9 November, in booth #4K 026, where msystems executives will be on hand to present the Company's latest products and technological achievements. More information about the conference is available online at cartes.com/en/2006/index.htm.

About LG Electronics, Inc.

LG Electronics, Inc. (KSE: 06657.KS) is the global leader and technology innovator in consumer electronics, home appliances and mobile communications, employing more than 72,000 people working in over 120 operations including 80 subsidiaries around the world. Comprised of four business units: Mobile Communications, Digital Appliance, Digital Display and Digital Media with global sales at USD 34.7 billion (consolidated USD 43.4 billion) as of 2005, LG Electronics is the world's leading provider of CDMA handsets, residential air conditioners, plasma panels, optical storage products, DVD players and home theatre system. For more information, please visit www.lge.com.

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.

More information is available online at msystems.com. msystems. made smarter.

Contacts

Brodeur for msystems

Editorial Contact

David Coates

1-617-587-2927

dcoates@brodeur.com

LG Electronics Inc.

Corporate Communications Team

lgpr@lge.com

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