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SiliconSystems Significantly Expands Sales Channel Signing Agreements with Eight of Europe’s Top Distributors

Company’s strengthened international presence gives enterprise system OEMs greater access to SiliconSystems industry-leading solid-state storage technology

ALISO VIEJO, Calif., July 7, 2005 -- SiliconSystems, Inc., the world leader in industrial-grade solid-state storage solutions engineered exclusively for the enterprise system OEM market, today announced the significant expansion of the company’s sales channel in Europe by signing agreements with eight of Europe’s top electronics distribution companies. SiliconSystems new distribution partners include altec ComputerSysteme in Germany, CSI (Computer Systems for Industry) in Poland, Miel in France, MIKO Components AB in the Nordic Countries, Peak Development in the United Kingdom, Silverstar (a subsidiary of Arrow Electronics, Inc.) in Southern Europe and North Africa, Systronics in Switzerland and TecBIT in Austria, Czech-Republic, Hungary and Slovakia. The agreements establish these companies as authorized distributors of SiliconSystems’ complete line of industry-leading SiliconDrive™ products in their respective countries and regions.

Strengthening the company’s sales representation in Europe is part of SiliconSystems’ overall strategic plan to expand its reach worldwide. SiliconSystems selected each of its distribution partners based upon their market and technological experience, strong customer relationships in target markets and significant expertise in solid-state storage for the industrial sector.

“Partnering with the top distribution companies is crucial to our strategy in expanding our European presence, and we are proud to have our industry-leading technology represented by distributors of this caliber,” said Michael Hajeck, CEO at SiliconSystems. “The quality of our new distribution partners further demonstrates the market demand for SiliconSystems’ patented and patent-pending SiliconDrive technology in meeting the high performance, high reliability and multi-year product lifecycle requirements of the enterprise system OEM market.”

About altec ComputerSysteme
altec ComputerSysteme, GmbH designs, manufactures and markets flash-based data storage products, solid-state disks and copystations in the industrial and commercial computer marketplace. altec also designs customer specific applications in hardware and software, and is active in application engineering and technical support for customers in this environment. The company is one of the leading SanDisk distributors in Europe. To find out more about altec, go to the company’s website at www.altec-computersysteme.com.

About CSI
CSI, Computer Systems for Industry, is the leading Polish distributor of industrial computers (IPCs) intended for application in the industrial, medical, communication and rugged environments. CSI provides a “One-Stop-Shop” opportunity for OEM manufacturers by offering IPCs, solid-state storage solutions, 19” rack mechanics and rugged monitors. CSI also provides integration services and turn-key solutions for its customers. CSI is based in Krakow, Poland. For additional company and product information, please visit the company’s website at www.csi.net.pl.

About Miel
Created in 1985, Miel imports and distributes high-tech products including solid-state storage solutions, as well as products for IT systems and networks. Its 13 years of experience distributing solid-state storage solutions gives Miel an incomparable knowledge of this activity, for both the public market and severe environments.

Always in touch with the market, Miel answers all customer needs with a qualified team of engineers, technical support services and an authorized training center. For more details please visit the company’s website at www.miel.fr.

About MIKO Components AB
MIKO Components AB, founded in 1979, is one of the leading distributors in the Nordic countries for industrial embedded solutions. MIKO offers the market a complete solution of strategic components for rugged vehicle systems, mobile computers for industrial environments, information, automation and kiosk applications.

MIKO Components AB is a subsidiary company to the public ElektronikGruppen BK AB with headquarters in Stockholm Sweden. For additional information, please visit the company’s website at www.miko.se.

About Peak Development
Peak Development is a distributor focused on solid-state storage and disk drives for OEM industrial-based systems and consumer electronics. The company offers consumer grade to full military specification flash-based products. Peak’s aim has always been to offer the most complete range of products backed by knowledgeable, reliable and friendly service. With in-house programming, labeling and packaging facilities, Peak can offer a full turnkey facility to its customers. Peak was established in 1993 and the company’s headquarters are based in Southampton, England. Please visit the company’s website at www.peak-uk.com.

About Silverstar

Silverstar is a leading distributor of electronic components and computer products. It has a comprehensive line card that features semiconductors; liquid crystal displays (LCDs), subsystems, passives, electromechanical devices, connectors and computer products. Silverstar's subsidiaries include Claitron, Lasi Elettronica, Silverstar Celdis, Elettronica Express and Microtronica.

Since 1991 Silverstar has been a partner to Arrow Electronics, Inc., a world leader in electronic and computer products distribution.

Headquartered in Milan, the company has been certified ISO9002 since 1995. More than 50 specialized field application engineers are available to support customers with their projects and in choosing the right products for their applications. For more information, visit the company’s website at www.arrowitaly.com.

About Systronics

Systronics is the Swiss leader in distribution exclusively for industrial equipment with strong focus on industrial-grade memory solutions and ruggedized industrial controllers and displays. The company’s products meet the rigorous demands in the industrial, railway and marine markets and are engineered for high-reliability and multi-year product lifecycles to allow maintenance-free operation. Systronics is based in Baden, Switzerland. Please visit www.systronics.ch for additional company and product information.

About TecBIT
TecBIT is a distributor that specializes in industrial embedded computing, industrial automation and solid-state storage products. The company enjoys long-term relationships with its partners and has experience working with fast growing high tech markets and provides excellent product and market knowledge. For more company and product information, please visit TecBIT’s website at www.tecbit.com.

About SiliconSystems
SiliconSystems is the world leader in industrial-grade solid-state storage solutions engineered exclusively for the high performance, high reliability, multi-year product lifecycle requirements of the Enterprise System OEM market. The company’s patented and patent-pending SiliconDrive™ technology meets the rigorous demands of applications in the netcom, military, industrial, interactive kiosk and medical markets. SiliconSystems is based in Aliso Viejo, California. Additional company and product information is available on the company’s website at www.siliconsystems.com.


Agency Contact:
Annette Keller
Keller Communication
(949) 640-4811
annettekeller@sbcglobal.net


Company Contact:
Gary Drossel
SiliconSystems, Inc.
(949) 900-9414
gdrossel@siliconsystems.com

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