FLSH news:
Wednesday June 2, 7:29 am Eastern Time
Company Press Release
Microsoft's WebTV Selects M-Systems' DiskOnChip for Local Storage in Its
Newly Introduced Set-Top Boxes
M-Systems Continues Penetration Of Internet Access Device Market
FREMONT, Calif.--(BUSINESS WIRE)--June 2, 1999--M-Systems Flash Disk Pioneers Ltd. (Nasdaq:FLSH - news) Wednesday announced the selection of
the company's DiskOnChip by WebTV Networks Inc., a subsidiary of Microsoft Corp., as the local storage device for WebTV's new generation of set-top boxes.
This announcement demonstrates M-Systems' rapid penetration in the Internet Access Device (IAD) market.
Essentially a hard-disk-on-a-chip, DiskOnChip Millennium was chosen by WebTV for its superior performance and features, reliability, and easy integration for
WebTV's industry-leading products integrating Internet access capabilities with television. Licensees for these devices include Philips, Sony and Thomson as well as
other manufacturers. WebTV is a recognized leader in the set-top box market with an installed base of more than 700,000 subscribers.
''DiskOnChip through its innovative, fully integrated flash disk technology, allows WebTV to deliver cost effective digital set-top box products to our customers,''
said Tim Bucher, vice president Consumer Products at WebTV Networks. ''This breakthrough technology provides a complete local storage solution that will
positively impact our time-to-market and enhance the competitive position of WebTV Internet receivers.''
Dataquest analyst, Jay Srivatsa, predicts worldwide units for Internet-enabled set-top boxes to be 1.6 million in 1999 and jump to 4.9 million in 2000. The expected
exponential growth in the market is attributed in great part to the increasing demand for Internet accessibility from the home, with Internet-enabled set-top boxes
requiring local storage devices such as DiskOnChip.
Overall, the IAD market, which encompasses set-top boxes, Web-phones, thin-client systems and network computers, represents an enormous potential market for
M-Systems' DiskOnChip products. While the company expects sales to WebTV and its licensees will reduce overall gross margins due to the aggressive nature of
pricing required in such a high-volume and competitive environment, the WebTV agreement gives M-Systems instant market share and acknowledgement as the
IAD industry standard.
''The move by WebTV is a sign of growing industry acceptance and a key milestone in our efforts to establish DiskOnChip as the industry standard local storage
solution in the IAD market,'' said Chuck Schouw, president and chief executive officer, M-Systems Inc. ''DiskOnChip has been designed into numerous set-top
boxes and we are steadily moving toward a position of market dominance.''
DiskOnChip Solution
A typical set-top box will store the operating system, device drivers and Internet clients (i.e. browsers, e-mail, media players and security applets) on the
DiskOnChip, which provides the capability to update these files as Internet standards and applications evolve.
In addition, optimal local storage and use of information such as configuration files, small text files commonly known as cookies and other data files are enabled by
the unique DiskOnChip technology. Increased benefits from DiskOnChip-based local storage include improved security, and overall cost-effectiveness, reliability
and time-to-market.
Combining a controller and high-density flash memory on a single die, DiskOnChip Millennium is the industry's only single chip flash disk. The first device in the
series offers 8MB (64Mbit), high performance, small footprint and low power consumption flash disk. Further reducing engineering costs, DiskOnChip Millennium is
a plug-n-play modular solution and requires minimal design and integration effort.
DiskOnChip Millennium is currently in high volume production and is available in DIP and TSOP packages. DiskOnChip products are currently designed into more
than 300 single board computers and embedded applications.
About WebTV Networks
WebTV Networks, a television Internet industry pioneer, now serves a growing customer base of greater than a half-million subscribers. With its rich Web content
and Internet access, WebTV Network service allows users to customize their TV watching in hundreds of useful and fun ways. It is the best way to watch TV
because it integrates the Internet with television. It enhances the viewing experience by helping users find shows that interest them and watch them when they want.
WebTV Networks operates the WebTV Network service and designs the WebTV-based Internet terminal and receivers available from companies like Sony,
Philips and Mitsubishi at consumer electronics stores nationwide. WebTV Networks, based in Mountain View, Calif., is a subsidiary of Microsoft (Nasdaq:MSFT -
news).
For additional information on WebTV and its products, contact the company at 1250 Charleston Ave., Mountain View, Calif. 94043. Telephone: 650/614-5500,
fax: 650/614-2782 or visit the company's Web site at www.WebTV.com.
About M-Systems Flash Disk Pioneers
M-Systems Flash Disk Pioneers develops, manufactures and markets a broad range of flash data storage solutions using its patented TrueFFS technology. Leading
the market for flash-based local storage applications, M-Systems is the first to bring the market a complete flash disk in a single die using its breakthrough
DiskOnChip Millennium technology.
M-Systems products include the DiskOnChip, Fast Flash Disk (FFD), CompactFlash, IDE Flash Disk and Flash PC Cards. For more information, contact
M-Systems at 39899 Balentine Dr., Suite 335, Newark, Calif. 94560. Telephone: 510/413-5950, E-mail: info@m-sys.com and on the Internet:
m-sys.com.
This news 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) those directly related to this specific announcement, including risks relating to the market acceptance of the products which are to
incorporate DiskOnChip, as well as risks that WebTV and/or its licensees will choose other providers/solutions or otherwise reduce, delay, cancel, or fail to place
orders of the DiskOnChip. These risks further include (but are not limited to) general risks relating to: timely product and technology development/upgrades; market
acceptance of new products and continuing product demand; the impact of competitive products and pricing on the company's and its customers' products and
markets; changing economic conditions and exchange rates worldwide; development, release and sales of new products by strategic suppliers and customers;
development and growth of anticipated markets for the company's and its customers' products; and other risk factors detailed in the company's most recent annual
report, its prospectuses dated Aug. 8, 1996 and July 23, 1997 respectively, and other filings with the Securities and Exchange Commission. The company assumes
no obligation to update the information in this release.
Note to Editors: A high-resolution graphic of WebTV's set-top box with M-Systems' DiskOnChip is available at m-sys.com.
Contact:
Editorial
M-Systems Inc.
Stacy Flint, 510/413-5950
stacyf@m-sys.com
or
T&O/Roberts Mealer
Gina Ray/Diana Spicer, 949/833-8006
gray@topr.com
dspicer@topr.com
or
Investor
M-Systems Flash Disk Pioneers Ltd.
Ronit Maor, 972-3-647-7776 ext. 223
ronitm@m-sys.com
or
KCSA
Mark Schwartz/Joseph A. Mansi, 212/682-6300
Fax: 212/697-0910
mschwartz@kcsa.com/jmansi@kcsa.com |
