MOSAID Reports Results for Second Quarter Fiscal 2011 and Dividend

Quarterly dividend of $0.25 per share payable on January 20, 2011

OTTAWA, Ontario – Nov 24, 2010 - MOSAID today announced financial results for the second quarter of fiscal 2011, ended October 31, 2010.

Q2 Fiscal 2011 Results

• Q2 revenues of $20.0 million, up 15% from $17.3 million in Q2 fiscal 2010
• Q2 pro forma net income of $9.3 million, up 16% from $8.0 million in Q2 fiscal 2010. Pro forma diluted EPS of $0.78, based on 11.89 million diluted shares, compared to $0.78 per diluted share in Q2 fiscal 2010, based on 10.33 million diluted shares
• Q2 GAAP net income of $6.6 million, up 32% from $5.0 million in Q2 fiscal 2010. GAAP diluted EPS of $0.55, compared to $0.49 per diluted share in Q2 fiscal 2010

"I am very pleased with the financial results and the operational progress we achieved during the second quarter," said John Lindgren, President and CEO, MOSAID. "We reported another quarter of double-digit revenue growth, with revenues coming in at the top end of guidance. Pro forma net income exceeded guidance."

"During the second quarter, we signed our first wireless patent license agreement with a leading supplier of semiconductor integrated circuit products, opening up another significant source of revenue for our wireless patents," said Lindgren. "MOSAID's wireless patents are currently driving the Company's revenue growth, and with the high rate of Wi-Fi adoption, we anticipate announcing new deals in the near future."

MOSAID had cash and marketable securities of $110.6 million at the end of the second quarter of fiscal 2011, compared to $103.6 million at the end of the first quarter of fiscal 2011. In Q2 fiscal 2011, MOSAID returned $2.9 million to shareholders in quarterly dividend payments.

On November 24, 2010, MOSAID declared a quarterly dividend of $0.25 per share. The dividend, which is an eligible dividend, is payable on January 20, 2011 to shareholders of record as of January 6, 2011

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

Second Quarter Operational Highlights

Wireless patent licensing: MOSAID signed a five-year, royalty bearing patent portfolio license agreement with a top-ranked, U.S.-based semiconductor supplier. Under the terms of the non-exclusive agreement, MOSAID granted the company a license under MOSAID's wireless patent portfolio covering semiconductor products sold worldwide that operate in compliance with the IEEE 802.11 standard (known as Wi-Fi). MOSAID also granted the company a license under its microcomponents patent portfolio, covering worldwide sales of 802.11-compliant products.

Patent portfolio development: MOSAID had 2,381 patents and applications at the end of Q2 fiscal 2011, up from 2,050 patents and applications at the end of Q1 fiscal 2011, and up from 1,840 patents and applications one year ago. In January 2010, MOSAID purchased from Samsung Electronics Co. a portfolio of semiconductor patents. The Samsung patents were added to MOSAID's portfolio in Q2 FY11, following the completion of the selection and assignment process.

Litigation update: On August 23, 2010, Cisco Systems Inc. served MOSAID with a Complaint for Declaratory Judgment in the United States District Court for the District of Delaware. In its complaint, Cisco sought a declaration of non-infringement and invalidity with respect to nine U.S. patents and one patent application owned by MOSAID, all of which relate generally to Power-over-Ethernet technology.

Q3 and Fiscal 2011 Guidance

Management offers the following guidance for the third quarter of fiscal 2011:

• Q3 revenues of $19.0 million to $21.0 million
• Q3 pro forma net income of $7.4 million to $8.1 million, or $0.62 to $0.68 per diluted share, based on 11.95 million diluted shares

The Company is offering the following updated guidance for fiscal 2011:

• Fiscal 2011 revenues in the range of $77.0 million to $80.0 million
• Fiscal 2011 pro forma net income of $31.2 million to $32.6 million, or $2.62 to $2.74 per diluted share, based on 11.9 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.

Due to the nature of the expense, patent licensing and litigation expense can vary significantly quarter-to-quarter.

Conference Call and Webcast

Management will hold a conference call and webcast on Wednesday, November 24, 2010 at 5:00 p.m. EDT. The webcast will be live at www.mosaid.com and may also be accessed by dialing 1-800-446-1671. Please provice confirmation number 28421889. 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 telecommunications systems. MOSAID counts many of the world's largest technology companies among its licensees. Founded in 1975, MOSAID is based in Ottawa, Ontario. For more information, visit www.mosaid.com and the InvestorChannel.mosaid.com.