Court Grants MOSAID's Motion to Proceed with Appeal

OTTAWA, Ontario – October 31, 2005 – MOSAID Technologies Incorporated (TSX:MSD) today announced that United States District Judge Fogel has issued a Stipulation and Order Granting MOSAID’s  Motion for Entry of Final Judgment Pursuant to Rule 54(b) and Staying Remaining Issues in Case (the "Stipulation").

On August 29, 2005, MOSAID had filed a motion in its patent infringement case against Infineon Technologies in California requesting the Court to certify the District Court of New Jersey’s summary judgement ruling as being ready for appeal.

In the Stipulation, Infineon agreed with MOSAID’s position that it can immediately appeal the Summary Judgment Order entered by the New Jersey Court on April 1, 2005, and postpone the remaining claims and upcoming trial relating to patent ‘703, until such appeal is completed.

“We believe this is a positive development for MOSAID and that it will ultimately provide a faster overall resolution of this case,” said Jim Skippen, Senior Vice President of Patent Licensing and General Counsel for MOSAID Technologies. “The New Jersey Summary Judgement ruling in this case resulted in a number of issues that need to be addressed at an appeal. In proceeding with the appeal immediately we expedite the process, which we expect to take approximately 18 months.”

A copy of the Court’s Order is available at http://www.mosaid.com/corporate/investor-relations/litigation-infineon.php

About MOSAID
MOSAID Technologies Incorporated makes memory better through the development and licensing of intellectual property and the supply of memory test and analysis systems to semiconductor manufacturers, foundries and fabless semiconductor companies around the world.

Founded in 1975, MOSAID is based in Ottawa, Ontario, Canada, with offices in Santa Clara and Sunnyvale, California; Newcastle upon Tyne, U.K; and Tokyo, Japan. For more information, visit the Company's web site at www.mosaid.com.