Press Releases


Jan 7, 2005

New U3™ Platform to Enable Software Developers to Create Portable Appkications on Widely Successful USB Flash Drive Devices

Las Vegas, January 7, 2005 - M-Systems Flash Disk Pioneers Limited (NASDAQ: FLSH) and SanDisk® Corporation (NASDAQ: SNDK) today announced the creation of the U3 platform; a new hardware and software platform that will expand the USB flash drive market beyond storage.

The goal of U3™ LLC, based in Redwood City, California, is to transform the USB flash drive market from simple storage devices into exciting new consumer products that people can use to carry, store and launch their own applications and data on any PC wherever they go. Announced at the Consumer Electronics Show 2005, U3 will create an expanded market of innovative applications for one of the fastest-growing consumer electronics devices in history. Analysts predict that more than 70 million USB drives will sell in 2005. M-Systems and SanDisk are innovators and leaders of the USB flash drive market, and will provide substantial related IP and technical expertise to the U3 platform.

Consumers have quickly embraced USB flash drive technology for its ability to transport large amounts of data from one PC to another. Because of its success, new vendor specific solutions have emerged in an attempt to use USB flash drives for more than storage. However, these efforts have been hampered by a lack of the standardization required to ensure multi-vendor interoperability and compatibility. There are no standards today that enable an independent software developer to create applications that are portable and secure for all USB flash drives. However, consumers who buy U3-compliant USB Flash drives will have the ability to take U3-compliant applications with them wherever they go.

The U3 platform includes a hardware specification as well as Application Program Interfaces (APIs) for software developers to access the unique mobility and security features available on these devices. U3 drives will contain a Launch Pad desktop interface to simplify viewing, launching, downloading and managing all U3 compliant applications stored on the devices.

U3's suite of software development tools will make it possible for software applications to store and retrieve data on a U3 device, enhance security by accessing the U3 platform standard features, and mobilize applications so they can be carried and launched on any computer. With the number of portable applications expected to be available, USB flash drive vendors may bundle applications that will appeal to specific market segments, such as healthcare applications, gaming, business productivity and more.

"U3 creates a new, open, standard platform that will take USB flash drives from the simple storage devices they are today to portable devices that are empowered by rich applications, harnessing the creative energy of a multitude of independent developers, " said Eli Harari, SanDisk's president and chief executive officer. "This platform will dramatically increase the value of USB drives to consumers and developers alike. SanDisk and M-Systems intend to strongly support and promote the U3 platform creating what we hope will become the U3 Economy."

Building a community of software developers will be a top priority for U3. U3's goal is to attract software developers by providing access to a large and growing base of U3 enabled devices. U3 currently plans to provide developers ongoing support including development tools, business and technical support and a Web-based distribution channel where millions of users will be able to easily purchase and download U3 compatible applications.

"U3 will unite the industry around best-of-breed technology to increase overall value to the consumer and open a whole new world of opportunities for software developers," said Dov Moran, president and chief executive officer of M-Systems. "U3 plans to build a robust infrastructure for consumers, developers and manufacturers of USB flash drives. The vision of U3 is to expand the USB Flash Drive from its current role as a simple, convenient storage device into a new consumer product that people can use to carry, store and launch their own applications on any PC."

U3 plans to offer software developers an organization dedicated to developing and maintaining the U3 specifications, plus software development kits and other tools to speed time to market, minimize investment, and provide a robust and standard platform.

"Software applications for flash drives have been largely developed for proprietary devices with limited market opportunity," said Joe Unsworth analyst at Gartner Inc. "Without a standard, developers were lacking key features to enable mobility and robust security, lacking multi-vendor interoperability, and lacking open, standards-based development tools. Creating a unified standard for USB drive application development will fuel innovation and foster cross-vendor compatibility."

The first U3-compliant devices are expected to ship by this summer.

About M-Systems
M-Systems designs, develops and markets innovative flash data storage solutions for digital consumer electronics markets. M-Systems primarily targets two fast-growing digital consumer electronics markets: the USB (universal serial bus) flash drive market with its DiskOnKey® product and the multimedia mobile handset market with its Mobile DiskOnChip® products. For more information, please contact M-Systems at

About SanDisk
SanDisk Corporation, the world's largest supplier of flash storage card products, designs, manufactures and markets industry-standard, solid-state data, digital imaging and audio storage products using its patented, high-density flash memory and controller technology. SanDisk is based in Sunnyvale, Calif. More information is available at

About U3
U3™ LLC is based in Redwood City, Calif. Its objective is to expand USB drive technology beyond storage. Users will be able to easily carry, store and launch a wide range of new applications from their U3 device from any PC wherever they may go. For more information see


All company and product names mentioned may be trademarks or registered trademarks of their respective holders and are used for identification purposes only.

NOTE: 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, risks related to: market acceptance of the U3 platform; the impact of competitive products and pricing; U3 development; commercialization and technological difficulties; development and growth of anticipated markets for U3; capacity and supply constraints; the effect of global economic conditions in general and conditions in SanDisk's and M-Systems' industry and target markets in particular; shifts in supply and demand; timely product and technology development/upgrades and the ability to manage changes in market conditions as needed; and other risk factors detailed in the M-Systems' and SanDisk's most recent respective annual reports and their other respective filings with the Securities and Exchange Commission. All forward-looking statements included in this release are based upon information available as of the date hereof. Each of M-Systems and SanDisk assumes no obligation to update the information in this 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 above websites does not constitute incorporation of any of the information thereon into this press release.

Media Contact:
Teena Touch
Porter Novelli for U3
Phone: 415-975-3321

Developer Contact:
Nathan Gold
Director U3 Developer Forum
Phone: 1-800-U37-3654


SanDisk Press Contact