2003 News Releases

"FOR IMMEDIATE RELEASE"

MOSAID Discontinues CAM Chip Development Program

OTTAWA, Ontario, Canada – September 16, 2003 – MOSAID Technologies Incorporated (TSX:MSD) today announced the closure of its fabless semiconductor operation and the creation of a design licensing group in its Intellectual Property Division.

"Today we have re-organized the Intellectual Property Division to address the design and licensing of specialty and embedded memory applications for our customers," said Peter Gillingham, General Manager of the Intellectual Property Division. "We come naturally to this business model and market opportunity, with our 28-year lineage in DRAM design and the memory intensive products we have developed as a fabless semiconductor supplier. We are positioning ourselves to offer custom chip solutions and specialized IP blocks for our customers’ demanding requirements."

"Our Semiconductor Division developed a solid product line of high performance CAM (content addressable memory) chips with an engineering organization which was performing well, and achieved design wins," said George Cwynar, President and Chief Executive Officer for MOSAID. "However, as with many chip initiatives focussed on networking equipment vendors, we found that the market for CAMs did not grow as we had expected and as a result became economically unattractive."

"We continue our initiative to sell the CAM business," said Richard Boadway, Senior Vice President and Chief Financial Officer. "However, based on interaction with parties performing due diligence on the business, the potential buyers only see value in the CAM technology we have developed. Therefore, with an ongoing cost of more than $1 million a month to preserve the business as a going concern, we concluded that the restructuring actions taken today would meet our objective of containing costs, while still permitting a disposition."

The restructuring actions taken today include:

• Workforce reductions of 26 employees from the Semiconductor Division, and eight from supporting roles.
• Transfer of nine employees from the Semiconductor Division to the Intellectual Property Division.
• The recording of a restructuring expense of $4.9 million, of which $2.5 million represents a cash cost largely related to severance obligations.

Conference Call and Webcast
Management will hold a conference call and webcast on Tuesday, September 16 at 11:00 a.m. (ET). Participants wishing to access the conference call should dial 1-800-814-4890. The conference call will also be webcast live at www.newswire.ca, and subsequently archived on MOSAID’s web site. A rebroadcast of the conference call will be available until midnight on Thursday, September 23, 2003. To access the rebroadcast, please dial 1-877-289-8525 and enter the passcode 21018569#.

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

• Intellectual Property – a developer and licensor of memory intellectual property.
• Systems – the leading supplier of engineering memory test and analysis systems to memory manufacturers, foundries and fabless chip companies around the world.

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