2002 News Releases

"FOR IMMEDIATE RELEASE"

MOSAID Sells its Investment in ATMOS

MoSys Will Assume ATMOS License to MOSAID Intellectual Property

OTTAWA, Ontario, Canada – September 3, 2002 – MOSAID Technologies Inc. (TSE:MSD) today announced that it has sold its equity stake in ATMOS Corporation to California-based Monolithic System Technology Inc., (MoSys), as part of the acquisition of ATMOS by MoSys.

On June 12, 2002, ATMOS announced that it had signed a letter of intent to be acquired by MoSys. Effective Friday, August 30, 2002, MoSys has finalized the purchase.

With the completion of this transaction, MOSAID will receive a payment, in cash, of approximately $3.3 million. The Company will recognize a loss on the disposal of its investment of approximately $300,000. This is consistent with management's disclosure in the fiscal 2002 annual report and the first quarter results for fiscal 2003.

ATMOS is a semiconductor company that offers high-density embedded memory solutions for systems-on-a-chip applications based on memory technology that it developed in collaboration with MOSAID. As part of the deal, MoSys will assume the limited license to certain MOSAID intellectual property, for application within ATMOS and MoSys products.

"MoSys is a strong competitor in the field of memory technology and we are pleased to have it as a licensee," said Richard D. Boadway, Senior VP of Finance and Administration, and Chief Financial Officer. "MOSAID will enjoy a royalty stream on the ongoing sales of licensed products and will add the proceeds from the sale of this investment to our current cash balance of $53 million."

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