M-Systems

SanDisk today announced the completion of its acquisition of msystems Ltd. in an all stock transaction valued at approximately $1.5 billion.

Digitimes reports that SanDisk and M-Systems will start billing a 5% royalty fee from NAND flash disk drive makers that adopt the U3 platform, according to sources at controller IC design houses.

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SanDisk and msystems today entered into definitive agreements for SanDisk to acquire msystems in an all stock transaction. This combination joins together two flash memory pioneers with complementary products, customers and channels. Together the combined company will have the people, technology, manufacturing and IP to play a leading role in creating new markets and accelerating the penetration of flash memory into existing storage applications.

msystems plans to deliver the exclusively-bundled applications and content through its global network of brand partners. The applications are as follows:
• ACD Systems’ ACDSee – photo viewing and editing software
• CyberLink PowerBackup – backup software
• RoboForm Pass2Go – password portability software
• Zinio Reader – magazine reader software – delivering exclusive premium content and magazines such as BusinessWeek, US News & World Report, PC Magazine, Elle, Reader's Digest and many more.

In addition to the aforementioned applications, msystems’ U3 smart software suite also offers McAfee U3 Anti-Virus, Migo Software’s Migo and the Mozilla Thunderbird e-mail client.

CyberLink today announced cooperation with storage manufacturer M-Systems to deliver a simple and secure solution for take-anywhere personal data using U3 Smart Drives and CyberLink PowerBackup.

CyberLink PowerBackup is an easy-to-use tool for archiving files, with features for creating full backups, comparing, and restoring data. As a perfect complement to the USB-based smart drive's latest security features, PowerBackup also allows users to add password protection to their backups.

The M-Systems USB smart drive featuring PowerBackup will be available in, France, Germany, Italy, the UK, and Japan.

As a proprietary msystems’ technology encompassing unparalleled flash management and control algorithms, x4 technology is designed to enable utilization of 4-bit/cell NAND flash, previously considered to be a practical and physical impossibility. x4 NAND components, likely to be mass produced during 2007, are to be comprised of the first-ever 4-bit/cell NAND flash media and an indispensable x4 technology controller. Thanks to msystems’ technological breakthrough, NAND flash manufacturers are expected to realize over 30% cost savings in comparison with the most advanced 2-bit/cell multi-level cell (MLC) NAND flash wafers manufactured to date through equivalent lithography. This is accomplished by doubling bit density in comparison with such MLC NAND flash, and quadrupling it when compared with single-level cell (SLC) NAND flash. Furthermore, as msystems’ x4 technology requires no changes to manufacturing processes, it stands to increase fab profitability.

msystems™ (Nasdaq: FLSH), a leader in smart personal storage, today announced that the Company will hold its 2006 Analyst Day meeting in New York on Thursday, May 11, 2006. The event will take place from 9:00 a.m. until 1:00 p.m. and will feature presentations by Mr. Dov Moran, President and Chief Executive Officer of msystems, and other members of the Company’s senior management team.

The event will be webcast live on msystems’ website at www.m-systems.com. The webcast will not be archived on the Company’s website following the conclusion of the event.