FLSH M Systems Flash Disk

Bundling U3 Anti-Virus Powered by McAfee Onto Smart Drives for Its Global Brand Partners, msystems Makes Portable Computing More Secure SUNNYVALE, Calif. and SANTA CLARA, Calif., Nov. 9 /PRNewswire-FirstCall/ -- - McAfee, Inc. (NYSE:MFE), the leading dedicated security technology company, and msystems(TM) (NASDAQ:FLSH), a leader in smart personal storage, today announced that the one-millionth msystems U3(TM) smart drive bundled with U3 Anti-Virus Powered by McAfee has shipped. "This significant milestone shows that consumers want to secure their applications and files wherever they are," said Todd Gebhart, senior vice president worldwide consumer and mobile sales, McAfee. "According to Gartner, USB flash drive shipments worldwide will experience 22% unit CAGR 2004-2010*. McAfee is excited to partner with msystems to offer a truly differentiated product that meets the consumer's need for flexibility, mobility and peace of mind." "We believe that the award-winning U3 smart drives are an important element in a second wave of growth for USB flash drives," said Noam Kedem, vice president of marketing for msystems. "This one-million milestone with McAfee represents the increasing value that our customers are placing on useful applications pre-loaded on U3 smart drives." A recent survey commissioned by msystems indicates that the USB flash drive (UFD) market is evolving and features such as data security are influencing customer purchasing decisions to a greater degree compared to previous analysis. McAfee anti-virus software pre-loaded on U3 smart drives from msystems answers customer concerns regarding UFD security uncovered by the survey. U3 smart drives host not only data and files, but U3 smart software programs, personal user preferences and the means for managing them. Building on the success of its patented category within the USB Flash Drive industry, msystems' U3 smart drives enable consumers to securely store, access and control their personal information and applications from any PC running Windows 2000 or XP, anytime and anywhere. Equipped with a versatile platform containing a powerful microprocessor at its core, the U3 smart drive fuses the power of U3 Anti-Virus Powered by McAfee and other software with the USB flash drive. U3 Anti-Virus Powered by McAfee is an easy-to-use anti-virus application that users can carry with them on their U3 smart drives to protect their data and computers from viruses. U3 Anti-Virus Powered by McAfee leverages the award-winning McAfee virus scanner, providing strong virus recognition and removal techniques to keep personal data and programs safe. U3 Anti-Virus Powered by McAfee can scan the U3 smart drive each time the drive is used, as well as scan the host computer on demand. About McAfee, Inc. McAfee Inc., the leading dedicated security technology company, headquartered in Santa Clara, California, delivers proactive and proven solutions and services that secure systems and networks around the world. With its unmatched security expertise and commitment to innovation, McAfee empowers home users, businesses, the public sector, and service providers with the ability to block attacks, prevent disruptions, and continuously track and improve their security. http://www.mcafee.com/ . NOTE: McAfee is a registered trademark or trademark of McAfee, Inc. and/or its affiliates in the United States and/or other countries. McAfee Red in connection with security is distinctive of McAfee brand products. All other registered and unregistered trademarks herein are the sole property of their respective owners. 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 http://www.msystems.com/ . msystems. made smarter. About U3 U3 LLC of Redwood City, Calif., licenses an innovative USB smart drive platform to manufacturers who want to make U3 smart drives for consumers. Eighteen companies worldwide are making U3 smart drives and more than 10,000 software developers are creating U3 smart Windows applications. U3 is backed by USB flash drive market leaders msystems(TM) and SanDisk(C) Corporation. For more information see http://www.u3.com/ . U3 is a trademark of U3 LLC. * Gartner Dataquest, "Market Trends: USB Flash Drives, Worldwide, 2001- 2010," Joseph Unsworth, Aug. 2005. 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 msystems' 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 msystems' 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 msystems' 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 msystems' and its customers' products; and other risk factors detailed from time to time in msystems' filings with the Securities and Exchange Commission. msystems 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 msystems' website above does not constitute incorporation of any of the information thereon into this press release. DATASOURCE: McAfee, Inc. CONTACT: Francie Coulter of McAfee, Inc., +1-408-992-8407, or ; or Eric Goldman of GlobalFluency, +1-212-213-5400, ext. 202, or , for McAfee; or David Coates of Brodeur, +1-617-587-2927, or , for msystems; or Jeff Corbin, +1-212-896-1214, or , or Lee Roth, +1-212-896-1209, or , both of KCSA, for msystems investors Web site: http://www.u3.com/ Web site: http://www.msystems.com/ Web site: http://www.mcafee.com/

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