M-Systems Signs Technology Collaboration Agreement with ARM

20 November 2002

Companies to Collaborate on the Optimization of SuperMAP Encryption Technology for Use with ARM Cores

CAMBRIDGE, UK AND KFAR SABA, ISRAEL - Nov. 20, 2002 - ARM [(LSE: ARM); (Nasdaq: ARMHY)], the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions, and M-Systems (Nasdaq: FLSH), a leader in flash-based data storage products, today announced that the two companies have signed a technology collaboration agreement. Under the terms of the agreement, M-Systems and ARM will optimize M-Systems' SuperMAP™ cryptographic coprocessors for use with ARM® SecurCore™ family of cores.

SuperMAP cryptographic coprocessors are a comprehensive family of hardware macrocells developed by M-Systems for accelerating cryptographic functions. These patented devices implement sophisticated public key encryption in both conventional RSA and Elliptic Curve (with single step multiply and divide).

The ARM SecurCore family of cores provides unique, 32-bit solutions for smart card and secure integrated circuit (IC) development, offering system designers privileged access to ARM processor cores to create fast, secure e-commerce, banking, networking, mobile multimedia, identification and public transportation solutions.

The agreement announced today complements the availability of an integrated cryptographic engine for SecurCore cores by providing ARM Partners with an option of interfacing to the security capabilities of SuperMAP technology for their SecurCore technology-based solutions.

"M-Systems' SuperMAP technology will put some of the most powerful encryption technology into the hands of designers of ARM Powered® devices," said Dominique Lutz, Secure Segment marketing manager, ARM. "The ARM SecurCore family, with its first SC100™ product released early 2001, has become the most widely licensed 32-bit RISC architecture for smart cards. SuperMap technology will provide ARM Partners with an additional choice of encryption technology optimized for different types of applications such as smart card, data storage, wireless or networking systems."

Additionally, as more security features are included, M-Systems products such as DiskOnChip® and DiskOnKey® stand to benefit from the cost savings and performance advantages derived from the integration of SuperMAP and ARM cores.

"The important security capabilities that SuperMAP provides will complement the outstanding features already found within ARM cores," said Dan Dariel, manager of M-Systems' Fortress Security Division. "This agreement with ARM further validates the importance of our SuperMAP technology to the microprocessor industry and to a wide variety of applications requiring the latest in security technology."

About ARM
ARM is the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions. The company licenses its high-performance, low-cost, power-efficient RISC processors, peripherals, and system-on-chip designs to leading international electronics companies. ARM also provides comprehensive support required in developing a complete system. ARM's microprocessor cores are rapidly becoming a volume RISC standard in such markets as portable communications, handheld computing, multimedia, digital consumer and embedded solutions. More information on ARM is available at http://www.arm.com.

About M-Systems
M-Systems (Nasdaq: FLSH) is a leader and innovator of flash-based data storage products known as flash disks, which provide the functionality of a mechanical hard drive in a silicon chip. M-Systems' products - DiskOnChip®, DiskOnKey® and Fast Flash Disk (FFD™) - are found in applications in a vast array of markets, including connected devices, mobile and telecom. Among M-Systems' technologies are TrueFFS® for flash management and SuperMAP™ for security and protection. For more information, please contact M-Systems at www.m-sys.com.


ARM is a registered trademarks of ARM Limited. SecurCore and SC100 are trademarks for ARM Limited. All other brands or product names are the property of their respective holders. "ARM" is used to represent ARM Holdings plc (LSE: ARM and Nasdaq: ARMHY); its operating company ARM Limited; and the regional subsidiaries ARM INC.; ARM KK; ARM Korea Ltd.; ARM Taiwan; ARM France SAS; and ARM China.
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.


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