MOSAID Announces Fourth Quarter and Year-End Results for Fiscal 2007 and Dividend

• Revenues up 56% year-over-year; income before discontinued operations up 40%
• Quarterly dividend of $0.25 per share payable on July 26
• Ottawa real estate conditionally sold for $14.0 million

OTTAWA, Ontario – June 28, 2007 – MOSAID Technologies Incorporated (TSX:MSD) today announced financial results for the fourth quarter and fiscal year ended April 30, 2007.

During the fourth quarter of fiscal 2007, MOSAID completed the sale of certain assets of its Systems Division test equipment business to Teradyne, Inc. and, as planned, exited the business. MOSAID also announced the focused strategic review of its Semiconductor Intellectual Property (Semi IP) product business and subsequently decided to divest the assets of this business. Accordingly, the financial results for both the Systems and Semi IP businesses have been reported as discontinued operations in the current and comparative periods, leaving the patent licensing business, including memory technology R&D, as the sole continuing operation.

Revenues for continuing operations for the fourth quarter of fiscal 2007 were $12.2 million, up 24% from $9.8 million in the fourth quarter of fiscal 2006.

Income from continuing operations for the fourth quarter of fiscal 2007 was $1.3 million compared to $3.0 million in the same period a year ago. Operating expenses in the fourth quarter included $2.2 million in amortization associated with acquired patents, $2.8 million in corporate restructuring charges and Special Committee costs of $848,000 related to the Company's strategic alternatives initiative. There were no such expenses in the fourth quarter of fiscal 2006. As such, excluding these charges, income from continuing operations for the fourth quarter of fiscal 2007 was $4.9 million on an after tax basis.

Discontinued operations contributed a net profit of $7.7 million in the fourth quarter of fiscal 2007. Included in this result was a $17.8 million gain on sale of assets to Teradyne and restructuring charges of $8.0 million related to the Systems Division and the Semi IP product business.

Net income for the fiscal 2007 fourth quarter was $9.0 million or $0.81 per diluted share, compared with $3.1 million or $0.27 per diluted share reported in the fourth quarter of fiscal 2006.

Revenues from continuing operations for fiscal 2007 were $59.9 million, up 56% from $38.5 million in fiscal 2006. Fiscal 2007 revenues included an $8.9 million non-recurring payment from PortalPlayer, Inc. Net income from continuing operations for fiscal 2007 was $20.5 million compared with $14.6 million in the prior year. For the current year, operating expenses included $3.3 million in amortization associated with acquired patents, $2.8 million in restructuring charges and $2.8 million in Special Committee costs. There were no such comparable costs in the prior year. As such, excluding these charges from fiscal 2007, income from continuing operations was $26.0 million on an after tax basis.

During fiscal 2007, discontinued operations contributed $4.2 million to net income compared with $851,000 in fiscal 2006.

Net income for fiscal 2007 was $24.7 million or $2.18 per diluted share, up 60% from net income of $15.5 million or $1.34 per diluted share in fiscal 2006.

"I am very pleased to report that in fiscal 2007, MOSAID delivered the best financial operating results in its 32 year history, which we achieved during a year of substantial organizational restructuring," said John C. Lindgren, President and Chief Executive Officer, MOSAID. "We are moving into fiscal 2008 on solid financial ground, with a new senior management team, a more robust patent portfolio, and a clear focus as a pure-play intellectual property company."

"We have strengthened our patent portfolio by acquiring fundamental wireless patents, entering into partnerships that open up exciting licensing opportunities, and filing patents on internally developed memory technology," said Lindgren. "Our immediate goal is to complete the current restructuring plan by divesting our Semi IP product business and our real estate. This will enable us to further concentrate our resources on the patent licensing and innovation strategy that will fuel the next stage of MOSAID's growth, as demonstrated by last week's announcement of a patent licensing agreement with Etron Technology."

The Company's cash balance and marketable securities at the end of fourth quarter was $50.3 million, compared with $63.6 million at the end of the third quarter of fiscal 2007. During the fourth quarter of fiscal 2007, the Company made a US$25.0 million payment to Agere Systems in relation to the acquired wireless patent portfolio.

On June 28, 2007, MOSAID Technologies declared a quarterly dividend of $0.25 per share. The dividend, which is an eligible dividend, is payable on July 26, 2007 to shareholders of record as of July 12, 2007.

Today MOSAID also announced the sale of its Ottawa head office campus, consisting of a 77,000 square foot office building and 11.3 acres of land, for $14.0 million. The building and land carry a book value of $5.4 million. As part of the transaction, MOSAID has agreed to lease back 15,000 square feet of office space for a five year period and has agreed to remain in the facility as a lead tenant. Conditions of the sale include satisfactory completion of due diligence.

Fourth Quarter Business Highlights

Operating highlights during the fourth quarter of fiscal 2007 included:

• The acquisition of 20 wireless patents and three applications from Agere Systems, now LSI Corporation. MOSAID has now notified 24 companies of MOSAID's purchase and current ownership of this wireless patent portfolio;

• Completion of the sale of certain assets of the Systems Division to Teradyne, Inc. for $20 million cash;

• Stopped the development of one Semi IP product and announced an ongoing review of strategic alternatives for that business; and

• The appointments of Carl Schlachte as Chairman of the Board, John Lindgren as President and Chief Executive Officer, and Joseph Brown as Vice President and Chief Financial Officer.

Guidance

As a result of the strategic alternatives process, the Company's acquisition of patents from Agere Systems, and other non-cash items of income and expense, the Company is changing the way it reports earnings on a going-forward basis in order to more closely reflect the financial management of the Company. As a result of this meaningful change in its financial model, the Company will also reformat the income statement.

Going forward, earnings will be reported using Generally Accepted Accounting Principles and on a pro forma earnings per share basis. The difference between pro forma earnings and GAAP earnings is due to stock-based compensation expense, amortization of intangibles and non-recurring items, on an after tax basis. There is no adjustment for changes in working capital items.

For the first quarter of fiscal 2008, MOSAID anticipates revenues of $12.0 million to $12.5 million, income from continuing operations of $2.2 million to $2.5 million, and GAAP net income of $8.1 million to $8.4 million. The Company expects pro forma earnings of $4.5 million to $4.8 million. For fiscal 2008, MOSAID is guiding for revenues in the range of $55 million, income from continuing operations of $11.0 million to $12.0 million and GAAP net income of $16.0 million to $17.0 million. The Company anticipates pro forma earnings of approximately $20.0 million to $22.0 million.

On February 22, 2007, MOSAID issued guidance for revenues in the fourth quarter of fiscal 2007 of $13.5 million to $14.0 million and net earnings of $5.5 million to $6.5 million. As a result of reporting Semi IP as discontinued operations for the fourth quarter and fiscal year, for comparison purposes, the Company is tabling reformatted guidance for the fourth quarter. Accordingly, for the fourth quarter, guidance for operating expenses would have been $8.1 million.

Conference Call and Webcast

Management will hold a conference call and webcast on Thursday, June 28, 2007 at 5:00 p.m. (EST). Participants wishing to access the conference call should dial

1-800-926-5068. . 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.