The privacy of most GSM phone conversations is currently protected by the 20+ years old A5/1 and A5/2 stream ciphers, which were repeatedly shown to be cryptographically weak. They will soon be replaced by the new A5/3 (and recently announced A5/4) algorithm based on the block cipher KASUMI, which is a modified version of MISTY. In this work we describe a new type of attack called a sandwich attack, and use it to construct a simple distinguisher for 7 of the 8 rounds of KASUMI with an amazingly high probability of 2^{-14}. By using this distinguisher and analyzing the single remaining round, we can derive the complete 128 bit key of the full KASUMI by using only 4~related keys, 2^{26} data, 2^{30} bytes of memory, and 2^{32} time. These complexities are so small that we have actually simulated the attack in less than two hours on a single PC, and experimentally verified its correctness and complexity. Interestingly, neither our technique nor any other published attack can break MISTY in less than the 2^{128} complexity of exhaustive search, which indicates that the changes made by ETSI's SAGE group in moving from MISTY to KASUMI resulted in a much weaker cipher. This is a joint work with Nathan Keller and Adi Shamir.