MOSAID Reports Results for First Quarter Fiscal 2010 and Dividend

Quarterly dividend of $0.25 per share payable on October 8, 2009

OTTAWA, Ontario – Aug 27, 2009 - MOSAID Technologies Inc. (TSX:MSD) today announced financial results for the first quarter of fiscal 2010, ended July 31, 2009.

• Q1 revenues of $16.2 million, up 28% from $12.7 million in Q1 fiscal 2009
• Q1 pro forma net income of $6.6 million up 65% from $4.0 million in Q1 fiscal 2009. Q1 pro forma EPS of $0.65 per diluted share up 76% from $0.37 in Q1 fiscal 2009
• Q1 GAAP net income of $6.4 million or $0.63 per diluted share, compared with $1.4 million or $0.13 per diluted share in Q1 fiscal 2009

"The substantial increase in Q1 revenues reflects the higher number of licensees contributing to quarterly revenues through both fixed payment and royalty based term licenses," said John Lindgren, President and CEO, MOSAID. "This quarter, a key operational highlight was the introduction of an HLNAND™ silicon chip and memory module, demonstrating the importance of targeted R&D investment to our business model as an intellectual property development and licensing company. MOSAID's objective is to drive market adoption of the HLNAND memory architecture and interface by licensing this innovative technology to third-party manufacturers."

"MOSAID also filed suit against IBM Corporation for patent infringement," said Lindgren. "While we prefer to reach negotiated settlements, the Company is determined to protect its intellectual property rights through the courts, when necessary."

MOSAID had cash and marketable securities of $52.4 million at the end of the first quarter of fiscal 2010, compared to $51.8 million at the end of the fourth quarter of fiscal 2009. In Q1 fiscal 2010, MOSAID returned $2.6 million to shareholders in quarterly dividend payments.

On August 27, 2009, MOSAID declared a quarterly dividend of $0.25 per share. The dividend, which is an eligible dividend, is payable on October 8, 2009 to shareholders of record as of September 25, 2009.

A reconciliation of pro forma net income to Canadian generally accepted accounting principles (GAAP) net income is included in the Notes to the Financial Statements accompanying this press release.

First Quarter Operational Highlights

Semiconductor memory patent licensing: During the quarter, MOSAID granted a six-year patent license agreement to an unnamed fabless semiconductor memory company. Under the cross-licensing agreement, this company's DRAM (Dynamic Random Access Memory) and embedded DRAM products are licensed for a six-year term commencing August 2009. A series of fixed payments is due to MOSAID during that period. The licensee also transferred to MOSAID ownership of five United States patent families related to DRAM technology.

Innovation: MOSAID began sampling a HyperLink NAND (HLNAND) semiconductor chip and memory module. The devices target the emerging market for SCM (Storage Class Memory) technology, which involves replacing or augmenting rotating magnetic disk storage with solid state storage devices and systems. MOSAID showcased its two new devices - a 64Gb (gigabit) semiconductor chip and a 64GB (gigabyte) memory module - at the 2009 Flash Memory Summit in early August in California.

Patent litigation: MOSAID initiated litigation against IBM Corporation of Armonk, New York, for infringement of six of MOSAID's United States patents. In a complaint filed in the United States District Court of the District of Delaware, MOSAID claims that IBM has infringed and is infringing MOSAID's patents by making and selling microprocessor and Application Specific Integrated Circuit (ASIC) products which practice MOSAID's patents.

Patent portfolio development: MOSAID's portfolio comprised 1,788 patents and applications at the end of the first quarter of fiscal 2010, up 96% from 912 patents and applications one year ago.

Q2 and Fiscal 2010 Guidance

Management offers the following guidance for the second quarter of fiscal 2010:

• Q2 revenues of $16.0 million to $17.0 million
• Q2 pro forma net income of $5.7 million to $6.4 million, or $0.55 to $0.62 per diluted share, based on 10.4 million diluted shares

The Company is maintaining its previously announced guidance for fiscal 2010:

• Fiscal 2010 revenues in the range of $65.0 million to $67.0 million
• Fiscal 2010 pro forma net income of $21.5 million to $22.5 million, or $2.07 to $2.17 per diluted share, based on 10.4 million diluted shares

MOSAID's revenues result primarily from intellectual property agreements, which by their nature may actually close on dates other than those projected. MOSAID's priority and focus is on obtaining the best terms possible under its agreements, rather than on the particular timing of agreement closure. MOSAID's revenues depend upon, among other items, the continued ability of its licensees to pay amounts as they become due. The Company takes steps, including monitoring the creditworthiness of its licensees, in order to manage this risk.

View Financial Statements [PDF]

Conference Call and Webcast

Management will hold a conference call and webcast on Thursday, August 27, 2009 at 5:00 p.m. EDT. The webcast will be live at www.mosaid.com and may also be accessed by dialing 1-800-447-0521. The webcast will be available on mosaid.com 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.