Press Release

PalmSource and M-Systems Advance Memory Storage for Palm Powered Mobile Devices

M-Systems Joins Palm OS Ready Program

SUNNYVALE and NEWARK, Calif., Aug. 6, 2003 - PalmSource, provider of the popular operating system for handheld and smartphone devices, and Palm OS® subsidiary of Palm, Inc. (Nasdaq: PALM), and M-Systems (Nasdaq: FLSH), an innovator of flash-based data storage products, today announced plans to enhance the memory solution for Palm OS handhelds and smartphones. Joining the Palm OS Ready Program, M-Systems' NAND flash-based memory storage technologies will be made available to Palm OS licensees. M-Systems' approach to managing flash memory is designed to allow licensees to speed time-to-market and lower overall device costs for Palm Powered™ handhelds and smartphones. M-Systems joins the list of Palm OS Ready Partners that include Intel, ATI, MediaQ, Motorola, Samsung and Texas Instruments.

"With the increasing demand for storage-heavy multimedia usage, we believe that M-Systems' addition to our Palm OS Ready Program delivers the depth of storage components our Palm OS licensees have been requesting," said Larry Slotnick, chief product officer for PalmSource. "M-Systems' expertise in memory-storage technology will enable Palm OS licensees to deliver a wide range of Palm Powered mobile devices with cost effective memory management solutions needed to efficiently store a variety of multimedia formats."

As Palm Powered mobile devices continue to expand into multimedia, wireless and enterprise usages, higher-capacity storage systems become increasingly critical. Through the Palm OS Ready Program, M-Systems and PalmSource will provide pre-integrated support for M-Systems' mobile DiskOnChip product family to offer a high capacity, non-volatile, flash memory storage system for Palm Powered handhelds and smartphones. Based on M-Systems' family of products that introduced NAND and Multi-Level Cell (MLC) NAND technologies and a built-in ultra thin controller, mobile DiskOnChip provides high memory system performance, enables reliable storage, saves on power consumption and reduces overall system cost. M-Systems' unique storage architecture also ensures data reliability guaranteeing that users never lose their data even after power failure.

"Mobile DiskOnChip, based on the most advanced NAND technologies, allows Palm OS licensees to provide the storage requirements for new features and capabilities such as cameras, color screens, voice recognition, games, and video," said David Tolub, vice president and co-manager of M-Systems' DiskOnChip business unit. "Our expanded role within the Palm Economy ensures that licensees and consumers, using this new storage capability, will have improved access to the cost reduction, power savings, increased performance, and data integrity that Mobile DiskOnChip offers."

"The Palm OS Ready program allows PalmSource to offer its licensees a strong selection of established technology partners," said Tim Bajarin, analyst for Creative Strategies. "M-Systems expertise in flash storage technologies allows PalmSource to enhance its offerings to include reliable internal data storage at increased capacities--a key component to new Palm Powered devices."

Palm OS Ready Program
Launched in July 2001, the Palm OS Ready program allows industry-leading component providers to drive faster innovation of Palm Powered Devices and foster growth throughout the Palm Economy. Combining access to key components of Palm OS technology with in-depth technical training and resources, the Palm OS Ready Program allows silicon providers to deliver more complete solutions to the Palm OS licensee community enabling Palm OS licensees to bring innovative and differentiated Palm Powered mobile devices to market faster and more efficiently.

About M-Systems
M-Systems (Nasdaq: FLSH) is a leader and innovator of flash-based data storage products known as flash disks. M-Systems' flash disks provide the functionality of a mechanical hard drive in a silicon chip. M-Systems' products are based on its patented TrueFFS® technology and target applications in a vast array of markets, including connected devices, mobile and telecom. M-Systems' products include the DiskOnChip®, DiskOnKey® and Fast Flash Disk (FFD™) product families. For more information, please contact M-Systems at www.m-sys.com.

About PalmSource
PalmSource is the company behind Palm OS, the popular operating system for handhelds and smartphone devices. Licensed by industry leaders - including Aceeca, AlphaSmart, Fossil, Garmin, GSL, Handspring, HuneTec, Kyocera, Legend, Palm Solutions Group, Samsung, Sony, Symbol and Tapwave as well as Palm OS Ready Partners including ATI, Intel, MediaQ, Motorola, Samsung, Texas Instruments -- Palm OS has been shipped on more than 29 million handhelds and smartphones, and given rise to a large community of users, enterprises, developers and manufacturers, who together make up the Palm Economy. PalmSource is a subsidiary of Palm Inc. (Nasdaq: PALM). More information about PalmSource is available at www.palmsource.com.