• Company Sees 2005 as Transition Year for Serial-Flash Designs; Device Production Increases; Winbond Chairman Joins Board

SAN JOSE, Calif., USA - March 21, 2005
NexFlash Technologies, Inc., a pioneer in Serial Flash technology, today announced a number of events that herald dramatic growth for the company in the Serial Flash memory market. Supported by projections from leading industry analyst Web-Feet Research, NexFlash anticipates 2005 to be the turning point in the adoption of Serial Flash memories in a wide variety of applications that once used Parallel Flash. To address both this anticipated growth and demand for the recently expanded NexFlash spiFlash® Serial Flash memory line, the company also announced it is ramping production of higher-density members of the spiFlash family.

Further reflecting NexFlash's growth, the company also announced the expansion of its board of directors. Arthur Chiao, chairman of Winbond Electronics, has been named a director on the NexFlash board.

2005 Brings Higher Densities, Application Conversions
NexFlash has positioned itself for success in the Serial Flash market's current wave of growth, where density needs have increased to between 4Mb and 32Mb, and complex new controller-based applications are quickly converting from Parallel Flash to the more pin- and space-efficient Serial Flash technology. The higher densities, features and performance of the company's spiFlash line allow a wide range of applications that were once Parallel Flash-only, such as DVD/CD drives, wireless LAN equipment and DSL modems, to be steadily refitted with Serial Flash.

"This confluence of significant events - designs converting to Serial Flash, our increased production of the spiFlash line, and having someone of Arthur's caliber on the NexFlash board - reflects a powerful shift in the Flash memory market and tremendous opportunity for NexFlash," said Thomas Liao, NexFlash president and chief executive officer. "It signifies that demand for Serial Flash is strong and getting stronger, and that NexFlash is positioning itself to maintain its leadership in this important market."

"We expect 2005 to see the largest-ever growth in revenue for Serial Flash memories, jumping from $275 million in 2004 to $480 million this year, then exceeding $1 billion in 2007," said Alan Niebel of Web-Feet Research, a leading analyst of the Flash memory industry. "Much of this expected growth can be attributed to the level of activity among manufacturers who are converting their designs from Parallel to Serial Flash. NexFlash is in advantageous position to capitalize on this significant growth with its spiFlash devices."


SERIAL FLASH MARKET (in millions)
Source: Web-Feet Research

New Board Member Brings Experience, Leadership, Commitment
Arthur Chiao is chairman and founder of Winbond Electronics Corp., the largest brand-name integrated circuit supplier in the Taiwan IC industry, with more than one billion dollars (NT$31B) in annual revenue. Mr. Chiao has been instrumental in Winbond's growth from its founding in 1987 through the present. Prior to Winbond, Mr. Chiao was chief executive officer of Walsin Group and chairman of Walsin Lihwa Corp. His extensive experience in the IC industry will provide NexFlash with proven guidance and support as the company prepares for rapid growth.

About NexFlash
NexFlash Technologies, Inc. is a developer and provider of Serial Flash Memory products for today's emerging electronic applications. The company's spiFlash memories are tailored for serial code storage applications such as DVD/CD drives, hard disk drives, wireless LANs, network cards, DSL modems, printers, set-top boxes, FPGAs and more. NexFlash was founded in October 1998 and is a partially owned subsidiary of Winbond Electronics Corp. NexFlash holds numerous patents on its technology and has established strategic alliances with Sharp Corporation and Winbond Electronics. For more information please visit the NexFlash Website at www.nexflash.com

NexFlash and spiFlash are trademarks of NexFlash Technologies, Inc. All other product names that appear in this material are for identification purposes only and are acknowledged to be trademarks or registered trademarks of their respective companies.