OTTAWA, Ontario – February 22, 2007 - MOSAID Technologies Incorporated (TSX: MSD) today announced that, as part of its strategic alternatives initiative, the Company has signed an agreement to sell certain assets of its System Division's automatic test equipment (ATE) business to Teradyne, Inc. (NYSE:TER) for $20 million in cash. Teradyne also intends to hire the new product development team of the Systems Division. MOSAID anticipates that the transaction will close by the end of the fourth quarter of fiscal 2007, ending April 30, 2007, and will generate a pretax gain, including the impact of discontinued operations, of approximately $13 million, and net cash proceeds of approximately $16 million, reportable in the fourth quarter.
MOSAID's Systems Division develops and sells engineering memory ATE for the global semiconductor industry. Teradyne is purchasing the assets and intellectual property associated with a MOSAID high performance tester platform. Teradyne will also receive an exclusive license to certain patented and non-patented intellectual property associated with MOSAID's current ATE product lines, and a non-exclusive patent license for Teradyne's ATE products.
"This transaction is a critical step in our strategic alternatives initiative and a realization of our vision to be sharply focused on the development and licensing of intellectual property," said George Cwynar, President and Chief Executive Officer, MOSAID. "For years, we have set the standard for excellence in engineering memory test equipment, with the MOSAID name being synonymous with high quality memory test systems. However, challenging business conditions within this market - coupled with our strategic emphasis on intellectual property - led to this divestiture, which marks the end of an era for MOSAID."
MOSAID will wind down its remaining ATE business by April 30, 2007 and intends to make arrangements with alternate service companies to provide ongoing support for its installed base of tester products.
Savvian Advisors, LLC acted as MOSAID's financial advisor on the transaction with Teradyne.
MOSAID's management will discuss the divestiture of the Systems Division during the Company's fiscal 2007 third quarter analyst conference call, scheduled for 5:00 p.m. Eastern Standard Time on Thursday, February 22, 2007.
MOSAID Technologies Incorporated makes semiconductors better through the development and licensing of intellectual property. 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. For more information, visit www.mosaid.com.