The company also launched U3 Software Central, the online place for consumers to download a variety of U3 smart software applications to their U3 smart drives. U3 Software Central is accessible with a single click from the U3 Launchpad interface on U3 smart drives or from http://www.u3.com .

On stage at tomorrow's DEMOfall technology conference, U3 Chief Executive Officer Kate Purmal will demonstrate how convenient it is for consumers to take their personal workspace wherever they go and productively work without carrying a laptop. Purmal will plug a U3 smart drive into a PC and show the audience how U3 smart software applications are launched and used from a U3 smart drive on any Windows-based computer and how all information is saved to the device, not the PC. Purmal will also show how easy it is to remove a U3 smart drive from a computer -- all windows close leaving no personal information behind on the PC.

U3 smart applications demonstrated at DEMOfall include:

• AOL -- Winamp media player for music, video, radio, TV and podcasting
• Cerulean Studios -- Trillian is a fully featured, stand-alone, skinnable chat client that supports AIM, ICQ, MSN, Yahoo Messenger, and IRC
• U3 Anti-Virus -- Based on McAfee VirusScan technology, U3 Anti Virus detects and removes viruses, worms, and Trojans, automatically scanning the USB smart drive and the memory of the computer to which it connects, to ensure the U3 drive is protected against security threats which may result in the loss or damage of documents and data.
• Powerhouse Technologies Group -- Migo software automatically synchronizes files, folders, Outlook email, favorites and more to a U3 smart drive for use on any computer
• Skype -- offers consumers free, superior-calling worldwide
• Party Poker -- the world's largest poker room where people can play poker with others around the world
• Zinio Systems, Inc. -- Zinio transform print editions of magazines and textbooks from the world's leading publishers including Ziff Davis, VNU, Time Inc., and McGraw-Hill into a compelling interactive digital form launchable from a U3 smart drive.

U3 smart drives will begin shipping on Oct. 15 from global brands:

• Kingston Technology 512MB and 1GB DataTraveler I smart drives.
• Memorex Mini TravelDrive in 256MB, 512MB, 1GB and 2GB capacities. McAfee Personal Firewall Protection Plus, Mozilla Thunderbird (email client), USafe (password protection) and Migo (synchronization) will be bundled on the smart drives.
• SanDisk popular Cruzer Micro product line in 512MB and 1GB capacities. All will be bundled with various U3 smart software applications.
• Verbatim Store 'n' Go sleek 1GB. McAfee anti-virus software and advanced password security features will be included with this U3 smart drive.

And European partners:

• CleverStuff disgo classic in 1GB, 2GB and 4GB capacities. All will come bundled with the U3 smart KeySafe password protection software application.
• Data Storage Advisor disk2go SMART in 256MB, 512MB, 1GB and 2 GB capacities. Bundled software on the smart drives includes U3 smart versions of McAfee Personal Firewall Protection Plus, Mozilla Thunderbird, USafe and Migo.
• Intuix in 512 MB, 1 GB and 2 GB capacities, in S300, S500 and M300 lines. Bundled software on the smart drives includes McAfee Personal Firewall Protection Plus, Mozilla Thunderbird, USafe and Migo.

U3 also announced new hardware partner I-O DATA, a leading company in Japan. I-O DATA will begin to produce U3 smart drives for the Japanese market in early 2006. For more information see http://www.U3.com .