OTTAWA, Ontario - September 5, 2006 - MOSAID Technologies Incorporated (TSX: MSD) today announced that it has retained Morgan Stanley and CIBC World Markets to assist in the review of its strategic alternatives, which includes, but is not limited to, a review of capital structure; potential business combinations or strategic partnerships; and the restructuring or sale of parts or all of the business, to maximize the value of the Company for its shareholders.
Driven by its vision to be one of the leading semiconductor intellectual property (IP) companies in the world, MOSAID has achieved great success in licensing its IP. MOSAID is now the seventh largest semiconductor IP company in the world and is on track in its current fiscal year to deliver the best financial results in its 31-year history. Nonetheless, the board of directors and management agree that the shares of the Company are undervalued. The Company as a matter of course regularly reviews its strategic alternatives and has worked for some time with these bankers. However, it has now formally engaged Morgan Stanley and CIBC World Markets to assist with this review.
"As we approach the upcoming annual general meeting of shareholders, we believe more strongly than ever that we must communicate effectively to our shareholders that we are acting responsibly as custodians of shareholder value," said Thomas Csathy, Chairman of the Special Committee of the Board of Directors. "We have now also retained communications, legal and proxy solicitation advisors to ensure that the steps we are taking are both appropriate and effective."
The Company's 2006 annual general meeting will be held on September 22, 2006 at 10:30 a.m. at the Company's head office in Ottawa. The board of directors also confirms that shareholders of record, who purchased common shares of MOSAID after August 1, 2006, the record date for the annual meeting, are entitled to vote at the meeting, subject to complying with conventional procedures, including ensuring that no share may be voted more than once.
MOSAID Technologies Incorporated makes semiconductors better through the development and licensing of intellectual property and the supply of memory test and analysis systems. MOSAID counts many of the world's largest semiconductor companies among its customers. Founded in 1975, MOSAID is based in Ottawa, Ontario, with offices in Santa Clara, California; Newcastle upon Tyne, U.K; and Tokyo, Japan. For more information, visit www.mosaid.com.