Spansion and M-Systems Partner to Develop an Innovative, Secure, Memory Design

  -- M-Systems (Nasdaq: FLSH), an industry leader and innovator of flash-based data storage devices, and Spansion LLC, the flash memory venture of AMD (NYSE:AMD) and Fujitsu Limited (TSE:6702), today announced that the companies have signed an agreement to co-design products which integrate flash management and logic intellectual property (IP) from M-Systems with Spansion’s MirrorBit™ flash memory offerings.

As part of this collaboration, Spansion’s MirrorBit technology will be used with M-Systems’ technology, which includes TrueFFS® flash management software, the de-facto industry standard and leading technology for flash management, SuperMAP™ cryptographic cores, security IP and advanced interfaces.

“M-Systems believes in strong, viable partnerships with leading companies such as Spansion for the development of innovative products. The fruit of this joint collaboration will employ our flash memory management expertise and state-of-the-art security, in order to bring real value to our customers.  We are excited about our cooperation with Spansion and believe that the jointly developed products will bring unique benefits for our target audiences, and specifically, for mobile network operators,” said Dov Moran, president and CEO of M-Systems.

“Partnering with M-Systems reinforces Spansion’s strategy to leverage MirrorBit technology to deliver value-added flash memory solutions to our customers,” said Bertrand Cambou, president and CEO of Spansion.  “Together we can enable our customers to deliver differentiated end products.”

The co-developed solution by M-Systems and Spansion is planned to have an innovative, highly integrated, monolithic design combining the flash media, controller and the security core. The companies expect this level of integration will be designed to allow for enhanced system architecture, increased security capabilities and streamlined system design for a range of applications, while yielding significant production advantages as well as an optimized cost structure, better performance and security and higher reliability.

About M-Systems
M-Systems develops, manufactures and markets innovative flash-based data storage solutions for consumer electronics and embedded markets.  The Company targets the fast growing multimedia mobile handset market with its DiskOnChip® and MegaSIM™ products and the popular USB flash drive market with its DiskOnKey® product.  More information about M-Systems is available online at www.m-systems.com.

About Spansion
Spansion, the Flash memory venture of AMD and Fujitsu, is the largest company in the world dedicated exclusively to developing, designing, and manufacturing Flash memory products. In fiscal 2004, Spansion’s total net sales were approximately $2.3 billion. The company offers the broadest NOR Flash memory portfolio in the industry, for use in the wireless, automotive, networking, telecommunications and consumer electronics markets. The company’s portfolio is supported by a worldwide network of advanced manufacturing facilities, system-level expertise and dedicated design support, and an unwavering commitment to our customers' success. Information about Spansion™ Flash memory solutions is available at www.spansion.com.