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ISD Continues Expansion Into Eastern Europe

HUMANsoft Named New ISD Distributor In Hungary

ELECTRONICA '96 - Munich, Germany, November 12, 1996 - ISD (Information Storage Devices, Inc.), (NASDAQ:ISDI) today announced the expansion of its Eastern European distribution network, naming HUMANsoft, (Budapest, Hungary) the sole distributor in Hungary for ISD's ChipCorder®-based voice record and playback integrated circuit solutions. ISD now has 15 representatives and distributors throughout Europe.

"ISD's ChipCorder technology is so innovative, and makes possible so many applications that we're excited about providing ISD's voice chips to our customers and seeing the types of products they'll be providing for end users," said Tamas Holman, division manager for design tools and semiconductor distribution for HUMANsoft. David Angel, ISD president and CEO, pointed out that over this past year ISD has expanded its operations in both Europe and Asia. "With over 60 percent of our business coming from outside the United States, ISD has mounted an aggressive campaign to increase our sales and marketing activities throughout the world," said Angel. "This new campaign has already resulted in design wins with many of Europe's leading electronics companies."

ChipCorder Technology

ISD's patented ChipCorder technology enables a single-chip solution for voice recording and playback in a variety of consumer, communications and industrial applications. It uses a proprietary "multilevel" storage methodology in which one of more than 250 distinct voltage levels are precisely stored per memory cell. This provides approximately eight times more storage space for any given memory size than the alternative two-level, digital storage technology. ChipCorder technology enables voice and audio signals to be stored directly in their natural form into nonvolatile EEPROM memory cells, eliminating the need for external A/D and D/A circuits. This delivers a single-chip, solid-state solution that requires no software, unlike other alternatives which are more difficult to integrate.

Furthermore, ChipCorder technology offers high-quality, voice reproduction because the voice signal is stored in its direct form and not encoded or compressed. It is the only single-chip, non-volatile voice solution available. Recorded messages are retained after batteries wear out. ChipCorder devices can be recorded and re-recorded reliably over 100,000 times.

To date, ChipCorder technology has been incorporated into hundreds of products, including cellular phones, pagers, personal voice organizers, telephone answering devices, voice "message pads", greeting cards, games, toys, interactive books, alarms, point-of-sale displays, novelty items and personalized gifts. It is also found in industrial announcement/annunciator systems, instrumentation, and building security systems.

About HUMANsoft

HUMANsoft Electronics Ltd. has been a distribution company for the computer and electronic industry since 1989. Its ChipCAD Distribution division started operations in 1991 distributing semiconductor products, PC-based development tools and CAD software packages. HUMANsoft Ltd. is located at Angol 42, Budapest, H-1 149 Hungary. Telephone: 361 3636676, Fax: 361 3636676, e-mail: info@HUMANsoft.hu.

About ISD

ISD, a leading supplier of semiconductor voice record and playback solutions, provides essential products to the communications marketplace using its proprietary multilevel storage and related technologies. ISD is located at 2045 Hamilton Avenue, San Jose, Calif., 95125, USA. Telephone: (408) 369-2400. Fax: (408) 369-2422.

Note: ChipCorder is a registered trademark of ISD. All other products are trademarks or registered trademarks of their respective companies.