msystems and SanDisk have announced the creation of U3™; a new hardware and software platform that will expand the USB flash drive market beyond storage.

The goal of U3™ LLC, based in Redwood City, California, is to transform the USB flash drive market from simple storage devices into exciting new consumer products that people can use to carry, store and launch their own applications and data on any PC wherever they go. Announced at the Consumer Electronics Show 2005, U3 will create an expanded market of innovative applications for one of the fastest-growing consumer electronics devices in history. Analysts predict that more than 70 million USB drives will sell in 2005.

U3's suite of software development tools will make it possible for developers to build software applications to store and retrieve data on a U3 device and mobilize applications so they can be carried and launched on any computer. With the number of portable applications expected to be available, USB flash drive vendors can bundle applications that will appeal to specific market segments, such as healthcare applications, gaming, business productivity and more.

Five significant software companies have already joined in endorsing the organization's efforts: Corel, America Online's ICQ, MedicAlert, McAfee Inc. and CheckPoint's Zone Labs.