2002 News Releases

"FOR IMMEDIATE RELEASE"

MOSAID Announces Fourth Quarter and Year End Results for Fiscal Year 2002

Reduced expense structure and narrowed scope to ensure strong foundation for growth in its chosen markets

OTTAWA, Ontario, Canada – June 20, 2002 – MOSAID Technologies Incorporated (TSE:MSD) today announced financial results for the fourth quarter and fiscal year ended April 26, 2002.

Revenues for the fourth quarter of fiscal year 2002 were $9,762,000, compared to $24,292,000 in the fourth quarter of fiscal year 2001. Net loss for the quarter was $3,186,000 ($0.31 per diluted share), compared to net income of $2,175,000 ($0.22 per diluted share) a year ago.

Revenues for the fiscal year 2002 were $51,861,000, compared to $82,926,000 in 2001. Net loss for the year was $24,686,000 ($2.45 per diluted share), compared to fiscal year 2001 net earnings of $7,002,000 ($0.72 per diluted share). Net loss for the fiscal year excluding one-time restructuring charges of $11,005,000 and income tax expenses of $4,480,000 (largely related to the write-down of future income tax assets) was $9,201,000 ($0.91 per diluted share).

Challenging Year but Well Positioned for Rebound
"We were operating in an extremely difficult business environment in fiscal 2002: the worst decline in the history of the DRAM (Dynamic Random Access Memory) market, and a major retreat in the market for networking chips. As a result, each one of our three operating divisions faced formidable challenges," said George Cwynar, President and Chief Executive Officer of MOSAID. "The poor financial condition of major DRAM manufacturers became a major hurdle in concluding licensing agreements in our Intellectual Property Division, the freeze on capital expenditures of potential customers drastically reduced the available market for our Systems Division, and the deteriorating economics of the networking chip development business clipped the wings of our Semiconductor Division. We responded by restructuring and refocusing our operations: we discontinued some projects, reduced our ongoing cost base by more than $4 million per quarter, but maintained the momentum of product development initiatives which best leverage our core competencies and will provide a strong foundation for future growth."

Strong Balance Sheet
During the first quarter of fiscal year 2002, MOSAID successfully completed a $40,700,000 financing with an offering of 1,100,000 common shares, priced at $37.00 per common share. Proceeds, net of commissions, were $39,072,000.

The Company's cash balance and short-term marketable securities at the end of the fourth quarter were $53,430,000, compared with $56,984,000 in the third quarter of fiscal 2002 and $19,239,000 at the end of fiscal year 2001.

Operating Highlights

In the Intellectual Property Division, the ongoing pursuit of patent licenses has been the priority during the year and has resulted in advanced discussions and the completion of a patent licensing agreement with Oki Electric Industry Co., Ltd. At the end of fiscal 2002 we had six licensees to MOSAID's patent portfolio, and another 11 companies were on official notice for patent infringement. The Company initiated litigation with one of these, Samsung Electronics Co., Ltd., in September 2001, when negotiations failed to progress. In the fourth quarter, MOSAID also filed 6 new patent applications, resulting in a total of 344 patents issued and pending at year end.

During the year, the Semiconductor Division narrowed the focus of its research and development efforts to the Content Addressable Memory (CAM) market. Its commercial networking chip, the Class-IC DC9288 was announced on January 28, 2002, as the first 9-Mbit DRAM CAM available in the marketplace. Good progress has been made in both the technical domain in establishing the production readiness of the chip, as well as the sales domain, in securing customer interest. As part of the Division's narrowing of focus during the past year, two programs were discontinued. Fabr-IC, MOSAID's switch-on-a-chip offering was shelved as a result of market slowdowns and Crypt-IC, the Company's encryption accelerator was cancelled due to the cessation of the semiconductor operations of its customer, Chrysalis-ITS.

After the close of the fourth quarter, MOSAID announced the appointment of Mr. Lluis Paris as General Manager of the Semiconductor Division. Mr. Paris had acted in this role since October 2001.

The Systems Division has focused on maintaining MOSAID's leading position in the engineering memory test equipment market with its core MS4205 family of products. Following the restructuring in September 2001, MOSAID discontinued the sales and marketing of its Acuid memory module tester and exited the module test business. Since the initial restructuring earlier in the fiscal year, the Systems business has shown some signs of recovery, but with the increased market uncertainty of late, and continuing divisional and Company losses, the Company has taken further measures to lower operating losses. Therefore, effective today the Company will take a further restructuring charge and will reduce its workforce by 15 employees, primarily from the Systems Division.

Management will hold a conference call and webcast on Thursday, June 20 at 10:00 a.m. (EST). Participants wishing to access the conference call should dial 1-888-881-4892. The conference call will also be webcast live at www.mosaid.com and www.newswire.ca, and subsequently archived on MOSAID's web site. A rebroadcast of the conference call will be available until midnight on Thursday, June 27, 2002. To access the rebroadcast, please dial 1-877-289-8525 and enter the passcode 194688#.

About MOSAID
MOSAID Technologies Incorporated is an independent semiconductor company operating through three divisions:

• Semiconductor – a fabless provider of networking chips
• Intellectual Property – a licensor of intellectual property to semiconductor manufacturers worldwide
• Systems – the leading supplier of engineering memory test and analysis systems to memory manufacturers, foundries and fabless chip companies.

Founded in 1975, MOSAID is based in Ottawa, Ontario, Canada, with offices in Santa Clara, California; Newcastle upon Tyne, U.K; and Tokyo, Japan. For more information, visit the Company’s web site at www.mosaid.com.

Forward Looking Information
This document may contain forward-looking statements relating to the Company’s operations or to the environment in which the Company operates. Such statements are based on current expectations that are subject to a variety of risks and uncertainties that are difficult to predict and/or beyond MOSAID’s control. Actual results may differ materially from those expressed in any forward-looking statements, due to factors such as customer demand and timing of purchasing decisions, product and business mix, competitive products, pricing pressures as well as general economic and industry conditions. MOSAID assumes no obligation to update these forward-looking statements, or to update the reasons why actual results could differ from those reflected in any forward-looking statements. Additional information identifying risks and uncertainties is contained in other public filings with the Ontario Securities Commission.

For more information, please contact:

Investor Inquiries Heidi Vincent Director, Investor Relations & Communications 613-599-9539 x1205 vincent@mosaid.com

Media Inquiries Sara Haskill Communications Specialist 613-599-9539 x1228 haskill@mosaid.com

FINANCIAL STATEMENTS AND NOTES FOLLOW

MOSAID TECHNOLOGIES INCORPORATED
(incorporated under the Ontario Business Corporations Act)
CONSOLIDATED BALANCE SHEETS
(in thousands of Canadian dollars)
(audited)

MOSAID TECHNOLOGIES INCORPORATED
CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS
(in thousands of Canadian dollars, except per share amounts)

MOSAID TECHNOLOGIES INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of Canadian dollars)
(audited)

MOSAID TECHNOLOGIES INCORPORATED
SEGMENTED INFORMATION
(in thousands of Canadian dollars)