Features - Storage Innovations:

SMARTCAPS TAKES USB FLASH DRIVE BEYOND THE PC

Continuing its momentum as the USB flash drive innovator, M-Systems has established the SmartCaps Ltd hardware subsidiary. The new company will create cost-effective consumer and business technology devices for partners. With the introduction of SmartCaps, the original purpose of USB flash drives has been redefined ­- what was once a standalone data storage and transport device is now a multi-functional consumer electronic device enabling a new level of product flexibility

The subsidiary is creating hardware peripherals for consumers looking to invest in a single USB flash drive for use with SmartCaps' multiple hardware devices. A DiskOnKey storage unit will work with a myriad of SmartCaps' peripherals that could possibly include a digital camera, voice recorder or MP3 player, eliminating the need for more multiple storage solutions. The SmartCaps' peripherals also allow partners to differentiate themselves through customized options enabling them to leverage the technology into sought after solutions for consumer and business applications.

"As the industry leader and market innovator we are continually pushing the envelope of USB flash drive technology, anticipating market trends and delivering solutions that propel the DiskOnKey to entirely new levels of adoption," said Dov Moran, president and CEO of M-Systems. "Through our SmartCaps subsidiary, our partners are able to receive groundbreaking products that can be customized and molded to their needs. This flexibility of product design and functionality allows partners to reach new heights in sales of both SmartCaps' hardware devices and DiskOnKey USB flash drives."

"SmartCaps once again demonstrates M-Systems' commitment to design innovation by offering cost-effective consumer oriented technology, based on the Smart DiskOnKey platform," said Shuki Nir, managing director of SmartCaps Ltd. "We see these innovations advancing the USB flash drive 'beyond the PC' meaning, the PC becomes a simple interface to provide access to a new source of software and hardware applications."

SmartCaps' products are expected to ship later this year. The SmartCaps' peripherals are sold separately or with Smart DiskOnKey platform devices. More information regarding SmartCaps is available at www.ufdsmartcaps.com.