MOSAID Announces First Quarter Results for Fiscal 2008 and Dividend

Quarterly dividend of $0.25 per share payable on October 19, 2007

OTTAWA, Ontario – August 30, 2007 - MOSAID Technologies Incorporated (TSX:MSD) today announced financial results for the first quarter of fiscal year 2008, ended July 31, 2007.

• Q1 revenues: $12.6 million
• Q1 pro forma income: $4.9 million or $0.44 per diluted share
• Q1 GAAP net income: $9.5 million or $0.85 per diluted share

Revenues for the first quarter of fiscal 2008 were $12.3 million, compared to $19.1 million in the first quarter of fiscal 2007. Revenues in the first quarter a year ago were higher primarily as a result of a one-time fixed payment of $8.9 million from PortalPlayer, Inc.

Pro forma income was $4.9 million or $0.44 per diluted share in the first quarter of fiscal 2008, compared to $9.8 million or $0.86 per diluted share in the first quarter of fiscal 2007. A reconciliation of pro forma income to Canadian generally accepted accounting principles (GAAP) net income is included in the notes to the financial statements accompanying this press release.

GAAP income before discontinued operations for the first quarter fiscal 2008 was $3.7 million or $0.33 per diluted share, compared to $8.5 million or $0.74 per diluted share for the same period a year ago. Income before discontinued operations declined primarily because of higher expenses for patent amortization and imputed interest related to acquired patents, and increased patent licensing and litigation costs, partially offset by foreign exchange gains and lower General and Administration costs.

GAAP discontinued operations contributed a net profit of $5.8 million in the first quarter of fiscal 2008. Included in this result was a pre-tax gain of $9.3 million related to the sale of Semiconductor IP product assets to Synopsys, Inc., partially offset by a pre-tax loss on discontinued operations of $2.2 million.

GAAP net income for the first quarter of fiscal 2008 was $9.5 million or $0.85 per diluted share, up 43% from net income of $6.7 million or $0.58 per diluted share reported in the same quarter last year.

"We had a very active first quarter, marked by a number of important achievements that advanced our goal of re-positioning MOSAID as a pure-play intellectual property company focused on patent licensing and innovation," said John Lindgren, President and Chief Executive Officer, MOSAID.

"The Company achieved solid financial results, with pro forma earnings within guidance. We sold our Semiconductor IP product assets to Synopsys, signed a patent licensing agreement with a fabless semiconductor company, Etron Technology, and entered into an exclusive patent licensing agreement with LSI Corporation that opens up new licensing opportunities," stated Lindgren. "As well, we introduced a breakthrough Flash memory architecture that is generating dozens of patent applications, and completed the strengthening of our management team and board."

"The expansion of our patent portfolio over the last two quarters has created many new licensing opportunities and we are vigorously pursuing them. We are now in communication with more than 50 companies regarding licensing MOSAID's patent portfolio," said Lindgren, "although the timing of closing individual license agreements continues to be difficult to predict."

The Company's balance of cash and marketable securities at the end of the first quarter of fiscal 2008 was $62.5 million, compared with $50.3 million at the end of the fourth quarter of fiscal 2007. MOSAID's cash and marketable securities are invested primarily in high quality, investment-grade financial instruments and the Company has no exposure to sub-prime mortgage, asset-backed commercial paper. The key factors contributing to the increase in cash and marketable securities in the first quarter of fiscal 2008 were the sale of assets to Synopsys, Inc. and the collection of receivables related to the final sale of memory test systems in the fourth quarter of fiscal 2007, partially offset by the payment of $2.8 million in dividends to shareholders.

On August 30, 2007, MOSAID Technologies declared a quarterly dividend of $0.25 per share. The dividend, which is an eligible dividend, is payable on October 19, 2007 to shareholders of record as of October 1, 2007.

First Quarter Business Highlights

Operating highlights during the first quarter of fiscal 2008 included:

• signing a 10-year patent licensing agreement with LSI Corporation, giving MOSAID the exclusive right to sub-license more than 50 LSI patents relating to memories, digital signal processors (DSPs), microprocessors, application specific integrated circuits (ASICs), and semiconductor processing technology;
• the sale of Semiconductor IP product assets to Synopsys, Inc. for US$15.3 million in cash, subject to a US$2 million holdback for one year;
• licensing MOSAID's patent portfolio to Etron Technology, Inc. of Taiwan for a five-year term;
• the introduction of a breakthrough Flash memory architecture and interface, Hyperlink NAND (HLNAND™), that will improve the performance of products using Flash memory, including solid state drives;
• the appointments of Norm Paquette and Barry Reiter to MOSAID's Board of Directors; and
• strengthening MOSAID's management team with the appointments of Jin-Ki Kim as Vice President, Research and Development; Phillip Shaer as Vice President, General Counsel and Corporate Secretary; and Michael Vladescu as Vice President, Licensing and Intellectual Property.

Guidance

Guidance for the second quarter of fiscal 2008 is as follows:

• Q2 revenues of between $11.3 million and $11.8 million
• Q2 pro forma income of between $3.4 million and $3.8 million
• Q2 GAAP net income of between $900,000 and $1.2 million

MOSAID is maintaining its guidance for fiscal 2008 as follows:

• Fiscal 2008 revenues in the range of $55 million
• Fiscal 2008 pro forma income of approximately $20.0 million to $22.0 million
• Fiscal 2008 GAAP net income of $16.0 million to $17.0 million

Conference Call and Webcast
Management will hold a conference call and webcast on Thursday, August 30, 2007 at 5:00 p.m. (EST). Participants wishing to access the conference call should dial
1-800-633-8692. The webcast will be live at www.mosaid.com will be available on MOSAID's web sit for 90 days following the event.

About MOSAID
MOSAID Technologies Inc. is one of the world's leading intellectual property companies. MOSAID develops semiconductor memory technology and licenses patented intellectual property in the areas of semiconductors, and wired and wireless communications systems. MOSAID counts many of the world's largest semiconductor companies among its customers. Founded in 1975, MOSAID is based in Ottawa, Ontario. For more information, visit www.mosaid.com.