Contact:
Soo Chung Patterson
408-955-7783
soo@televideo.com

DISKONCHIP ® SELECTED TO PROVIDE LOCAL STORAGE IN TELEVIDEO'S NEW TeleCLIENT -- STATE OF THE ART THIN CLIENT WINDOWS-BASED TERMINALS

FREMONT, Calif., Sept. 7, 1999 -- M-Systems Flash Disk Pioneers Ltd. (NASDAQ: FLSH - news ), the leader in flash based local storage solutions for the Internet appliance and embedded market, today announced that TeleVideo Inc. has integrated DiskOnChip into their line of TeleCLIENT™ Windows-based terminals (WBT).

DiskOnChip, essentially a hard disk on a chip, lowers TeleVideo's system cost by providing inexpensive storage for the operating system, software applications and local user configuration information, and enabling in-field upgrades. Additionally, emulation suites, browsers and media players are stored on DiskOnChip.

"With its small size and native Windows CE support, M-Systems' DiskOnChip is easy to integrate -- cutting development time and enabling us to bring this product to market sooner," said J.K. Yum, chief technical officer at TeleVideo. "In addition to being the fastest Windows-based terminals marketed, what's most important to our product line is DiskOnChip's upgrade-ability, allowing for our thin clients to be flexible and cost effective."

"DiskOnChip was specifically designed to provide a low-cost, local storage solution with an aggressive migration path to higher capacities," said Chuck Schouw, president, M-Systems Inc. "TeleVideo's selection of DiskOnChip optimizes their thin client design by allowing for faster integration and time-to-market while reinforcing the importance of local storage in every thin-client."

The TeleCLIENT family of thin client Windows-based terminals include the TC7000, a stand-alone unit; the TC7150 and TC7170, which are integrated with 15 and 17- inch CRT monitor. These products currently integrate 8MB DiskOnChip and TeleVideo plans to migrate to 16MB DiskOnChip with next-generation products.

DiskOnChip Technology

M-Systems' DiskOnChip is a family of small, bootable single-chip, flash disk solutions. The DiskOnChip product line offers products ranging in capacity from 2 to 144MB. DiskOnChip products are offered in standard packages including 32-pin DIP or TSOP with 3 or 5V and extended temperature options. These flash disks are low power, plug-n-play and easy to integrate, making DiskOnChip the optimal solution for embedded computers, Internet appliances, point-of-sale, networking, telecommunications and many other embedded applications. The DiskOnChip family offers wide OS compatibility including support for Windows CE, Windows NT, Linux, DOS, VxWorks, QNX, pSOS and many others. DiskOnChip has already been recognized as the industry-standard flash local storage solution in the embedded systems market. More than 300 different standard embedded system motherboards are currently being shipped worldwide with a socket for DiskOnChip.

M-Systems Flash Disk Pioneers Ltd. (NASDAQ: FLSH ) 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 Drive, Suite 335, Newark, Calif. 94560. Telephone: 510.413.5950, E-mail: info@m-sys.com and on the Internet: http://www.m-sys.com .

TeleVideo, Inc.

Founded in 1975, TeleVideo, Inc. is a pioneer in thin client computing. The company has been providing innovative, high-performance technologies, including terminals, monitors and multimedia products to the business and consumer markets. The company first became a leader in the video display terminal industry by introducing a new generation of "smart" terminals. TeleVideo holds a number of proprietary terminal emulations, including the TV910 and TV925 emulation, which have been an industry standard for more than 15 years and are currently used in millions of terminals worldwide. Today, the company is utilizing its expertise in server based network computing to forge new ground in delivering thin client solutions. For more information visit the company's website at www.televideo.com .

The matters discussed in this news release contain forward-looking statements that are subject to risks and uncertainties which may cause actual results to vary significantly. These risks include market and competitive factors, and other risks described in the Company's most recent prospectuses and other periodic reports filed with the Securities and Exchange Commission. The Company assumes no obligation to update the Information in this release.