msystems(TM) and Data I/O Corporation Announce Mass Programming Solution for mDOC H3 Embedded Flash Drive Products

msystems(TM) and Data I/O Corporation Announce Mass Programming Solution for mDOC H3 Embedded Flash Drive Products

September 27, 2006

Mobile handset, consumer electronics, and other device manufacturers can now swiftly load operating system and application code onto mass quantities of mDOC H3 chips

    SUNNYVALE, Calif. and REDMOND, Wash., Sept. 27
/Xinhua-PRNewswire/ -- msystems (Nasdaq: FLSH), a leader in
smart personal storage, and Data I/O(R) (Nasdaq: DAIO), the
leading provider of manual and automated programming
systems, today announced the availability of a mass
production programming solution for mDOC H3. The msystems'
version of mDOC H3 is the industry's first multi-source
embedded flash drive (EFD) specifically designed for mobile
handset vendors and consumer electronics manufacturers.

    Data I/O's FlashCORE(TM) family of manual and automated
programming solutions, utilized by mobile handset vendors
and consumer electronics manufacturers to load operating
system and application code onto flash memory chips, has
now been adapted and optimized to program mDOC H3 devices
at very high speeds. This enables mass adoption of mDOC H3
in mobile handsets and consumer electronics devices.

    "With all of the activity surrounding mDOC H3 from
msystems, Hynix and Toshiba, we immediately recognized the
need for a mass production programming solution for mDOC
H3. Our solution, developed in concert with msystems, is
part of a bigger picture being laid out around this smart
embedded flash drive," said Harald Weigelt, VP of
Worldwide Sales at Data I/O Corporation.  "We are
pleased that the performance of H3 technology is well
matched with our FlashCORE programming platform so that our
mutual customers can increase their factory
throughput," said Kelly Hirsch, Data I/O's Chief
Technologist.  

    Data I/O, a leading provider of programming solutions
for the handset and consumer electronics markets, is the
first manufacturer to provide full mDOC H3 programming
support.

    "Programming solutions, like this one from Data
I/O, are mandatory for mass production," said Noam
Kedem, Vice President of Marketing for msystems. "With
Data I/O's solutions, customers can quickly manufacture mDOC
H3-based devices in mass quantities, further optimizing
design and production costs. By working together, we are
all changing the way the latest flash technology is
seamlessly getting integrated into new mobile handsets and
consumer electronics devices. Our collaboration with Data
I/O means 'Programming made smarter.'"

    DOC H3 products from msystems, Hynix and Toshiba will
be available in quantities suitable for mass production
later this year.

    About mDOC H3

    mDOC H3 is the DOC H3 product marketed by msystems. DOC
H3 is a self-contained EFD with msystems TrueFFS(R) flash
management software running internally as firmware from
within the in-chip flash controller. This architecture is
designed to minimize overall system integration complexity
and help reduce end-product design cycles by offering
mobile handset and consumer electronics device
manufacturers a virtually plug-and-play, bootable EFD.

    About Data I/O

    Celebrating over 34 years of innovative leadership in
the device programming industry, Data I/O Corporation(R)
(Nasdaq: DAIO) provides manual and automated device
programming systems that specifically address the
requirements of engineering and manufacturing operations.
FlashCORE(TM) is the architecture behind a family of Flash
programmers that deliver the highest throughput and lowest
cost per programmed device. For Flash, microcontroller and
logic device support, the MultiSyte and UniSite families
provide universal support and versatility to address a wide
variety of programming needs. Data I/O Corporation is
headquartered in Redmond, Washington, and has sales and
service offices worldwide. For more information, see
http://www.dataio.com or call 800-426-1045. 

    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. msystems product lines include: 

    -- mDrive (formerly DiskOnKey(R)) U3 USB smart drives
for personal, 
       portable computing
    -- mDOC embedded flash drives for mobile handsets and
consumer electronics 
       devices
    -- mSIM MegaSIM(R) series high-density SIM cards and
mSIM M.MAR(R) series 
       SIM cards and highly secure cards (available both
from msystems and its 
       subsidiary Microelectronica)
    -- mCard, high-quality memory cards for mobile handsets
and digital cameras
    -- mTrust (formerly Xkey(R)) end-to-end enterprise
access, control and 
       management solution for USB flash drives and other
removable media
    -- mSSD (formerly FFD(TM)) rugged solid state disks for
mission-critical 
       applications
    -- mModule (formerly DiskOnChip(R) modular family)
modular flash storage 
       for embedded systems
    -- mSafe (formerly SuperMAP(R) family) secure hardware
and software crypto 
       cores

    More information is available online at
http://www.m-systems.com. msystems. made smarter . 

    Note to Editors: High-resolution photo images of
msystems products can be found on the Internet at
http:///www.m-systems.com/site/en-US/Corporate/PressRoom/ImageLibrary
.

    msystems Forward-Looking Statements

    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. 

    Data I/O Forward-Looking Statements

    All company and product names mentioned may be
trademarks or registered trademarks of their respective
holders and are used for identification purposes only. The
matters discussed in this news release include
forward-looking statements that are subject to risks and
uncertainties that may cause actual results to vary
significantly. These risks include market and competitive
factors, and other risks described in the Company's most
recent annual report and/or in any of its other filings
with the Securities and Exchange Commission. The Company
assumes no obligation to update the information in this
release. Reference to the Company's website above does not
constitute incorporation of any of the information thereon
into this press release.

    For more information, please contact :

     David Coates
     Brodeur 
     Tel:   [phone]
     Email: [e-mail]

     Kennan M. Yilmaz 
     Data I/O Corporation 
     Tel :  [phone]
     Email: [e-mail]

    Investor Contacts for msystems 
     Jeff Corbin / Lee Roth
     KCSA Worldwide
     Tel:   [phone]
     Email: [e-mail] / [e-mail]

     Dennis McFarland
     Goldstein Group Communications
     Tel:   [phone]
     Email: [e-mail]

SOURCE  Data I/O Corporation