2003 News Releases

"FOR IMMEDIATE RELEASE"

MOSAID Announces Fourth-Quarter and Year-End Results for Fiscal Year 2003

OTTAWA, Ontario, Canada – June 19, 2003 – MOSAID Technologies Incorporated (TSX:MSD) today announced financial results for the fourth quarter and fiscal year ended April 25, 2003.

Revenues for the fourth quarter of fiscal year 2003 were $11,446,000, compared to $9,762,000 in the fourth quarter of fiscal year 2002. Net loss for the quarter was $8,389,000 ($0.82 per diluted share), compared to net loss of $3,186,000 ($0.31 per diluted share) a year ago. Net loss for the fourth quarter of fiscal 2003 includes a restructuring expense of $5,735,000, of which, an estimated $4 million represents a cash cost. In addition, the income tax expense for the quarter includes the writedown of $799,000 of the Company's future income taxes asset. Adjusted for these two items, the net loss for the quarter was $1,855,000 or $0.18 per diluted share.

Revenues for fiscal year 2003 were $38,175,000 compared to $51,861,000 in 2002. Net loss for the year was $19,897,000 ($1.94 per diluted share), compared to fiscal year 2002 net loss of $24,686,000 ($2.45 per diluted share). Restructuring charges were recorded in both years.

The Company's cash balance and short-term marketable securities at the end of the fourth quarter were $42.3 million compared to $45.0 million at the end of the third quarter of fiscal 2003.

"Despite the challenging market conditions, we recorded several significant first-time accomplishments in our Intellectual Property Division over the past fiscal year with the announcement of three new patent licenses: Winbond was our first Taiwanese licensee as well as the first to sign a running royalty agreement, while Matsushita and Sony were the first two companies to license our patent portfolio, primarily for embedded DRAM applications," said George Cwynar, President and Chief Executive Officer of MOSAID. "In response to the increased importance and number of licensing negotiations and litigation actions, Jim Skippen has been promoted to Senior Vice President, Patent Licensing and General Counsel, and is taking on full responsibility for negotiating patent license agreements. Peter Gillingham, in his role as General Manager of the Intellectual Property Division, will continue to support licensing negotiations and litigation activity, and will focus more on increasing the value and reach of our patent portfolio," said Cwynar.

"Our Systems and Semiconductor Divisions performed well during the year with respect to the delivery of new competitive product offerings. However, continuing weakness in our customers' end-markets led to lower tester revenues and backlog, and constrained design win activity for our content addressable memories (CAMs). As a result, during the fourth quarter we restructured the Systems and Semiconductor Divisions, reducing our cost base and product development activity to better match near-term customer demand," said Cwynar.

Operating Highlights

· Signed Three New Patent Licensees in the Fiscal Year

The Intellectual Property Division increased its number of patent licensees to nine, with the completion of agreements with Matsushita, Sony and Winbond in the last fiscal year. While the Matsushita and Sony agreements provide clear evidence that there is significant licensing opportunity with manufacturers of embedded DRAM, the Winbond announcement represents a particularly important milestone in the licensing program. As the first running royalty rate patent license, the Winbond agreement lays the foundation for realizing both near-term and long-term value from MOSAID's patent portfolio.

In the third quarter, MOSAID entered into litigation with Infineon Electronics for infringement of the same seven patents under dispute in the Samsung lawsuit. On June 5, 2003, MOSAID amended its claim against Infineon by adding a claim of infringement of an eighth patent. The Samsung Electronics case advanced through the discovery phase with the next milestone being the Markman, or claims construction hearing, which, while originally scheduled for July 15, 2003 has now been rescheduled for September 15, 2003. At the end of the fourth quarter, MOSAID had eleven companies on notice for patent infringement and 500 patents issued and pending, representing an increase of 14 over the third quarter of fiscal 2003.

· Expanded Family of MOSAID Class-IC® Network Search Engines

The Semiconductor Division focused efforts on growing its customer base and product family of MOSAID Class-IC® network search engines and developing relationships to leverage its products into the CAM marketplace. In the second quarter, the Division achieved competitive commercial yields and production readiness for its first commercial networking chip, the 9Mbit MOSAID Class-IC® DC9288 network search engine. In the same quarter MOSAID unveiled its DC9000, a new 9Mbit offering which delivers glue-less connectivity to industry leading network processors, and also launched and began shipping samples of the DC18288, its 18Mbit product that meets customers' requirements for larger content addressable memories.

During the fourth quarter, the Semiconductor Division announced, at the Intel Developers Forum, the availability of its search engine development platform which addresses market requirements for seamless integration with network processors. While the Division performed well in its delivery of new products, networking market conditions have limited the pace of design activity by OEMs. Therefore, during the fourth quarter, the Division reduced its level of R&D but maintains a breadth of design team and a strong product portfolio to address both near-term and future customer requirements for larger CAMs.

· Launched Next Generation MS4205ex Memory Test System

The Systems Division continued to maintain its leading position in engineering memory test with the launch of the latest model in its fifth generation of memory test systems at SEMICON/West earlier in the fiscal year. The MS4205ex began shipping during the second quarter of fiscal 2003, and is designed to meet the industry's demands for engineering test and analysis of high-speed memories for years to come.

Unfortunately, for the second consecutive year, low levels in capital spending within ATE markets continued to adversely affect MOSAID's tester sales. In order to align the Systems Division cost of operations with the current size of the market, actions were taken in the first and fourth quarters to reduce the Division's cost structure. Development efforts will remain focused on the MS4205 product line of memory test systems which include capabilities for testing emerging high-speed memories such as DDR2 SDRAM, as well as SRAM, Flash, DDR and SDRAM memories.

Conference Call and Webcast
Management will hold a conference call and webcast on Thursday, June 19 at 5:00 p.m. (EST). Participants wishing to access the conference call should dial 1-800-814-4857. 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 26, 2003. To access the rebroadcast, please dial 1-877-289-8525 and enter the passcode 21003189#.

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 FOLLOW

MOSAID TECHNOLOGIES INCORPORATED
(Incorporated under the Ontario Business Corporations Act)
CONSOLIDATED BALANCE SHEETS
(In thousands)
(audited)

MOSAID TECHNOLOGIES INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
(In thousands, except per share amounts)

MOSAID TECHNOLOGIES INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

MOSAID TECHNOLOGIES INCORPORATED
SEGMENTED INFORMATION
(in thousands of dollars)