2004 News Releases

"FOR IMMEDIATE RELEASE"

MOSAID Announces Fourth-Quarter and Year-End Results for Fiscal Year 2004

OTTAWA, Ontario, Canada – June 17, 2004 – MOSAID Technologies Incorporated (TSX:MSD) today announced financial results for the fourth quarter and the fiscal year ended April 23, 2004.

As a result of exiting the fabless semiconductor business and discontinuing operations of the Semiconductor Division in September 2003, the Company revised certain previously disclosed results of operations and amended its financial presentation, in accordance with Canadian generally accepted accounting principles.

Revenues for the fourth quarter of fiscal year 2004 were $8,984,000 compared to $11,405,000 in the fourth quarter of fiscal year 2003. Net income for the quarter was $815,000 or $0.08 per diluted share, compared to a net loss of $8,389,000 or $0.82 per diluted share a year ago. Before discontinued operations, earnings for the quarter were $456,000 or $0.04 per diluted share compared with a net loss of $1,142,000 or $0.11 per diluted share a year ago.

Revenues for the fiscal year were $29,396,000 compared to revenues of $37,981,000 reported for the same period last year. Net loss for fiscal year 2004 was $8,581,000 or $0.83 per diluted share, compared to a net loss of $19,897,000 or $1.94 per diluted share reported for fiscal 2003. The loss for fiscal 2004 before discontinued operations was $916,000 or $0.09 per diluted share compared to a loss before discontinued operations of $407,000 or $0.04 a year ago.

MOSAID holds a minority investment in Acuid Corporation Limited, which is a development stage company providing high-speed data transfer technology. Following MOSAID’s year-end, Acuid secured an investment round whose valuation has warranted the writing down of MOSAID’s investment by $580,000. Both the fourth quarter and fiscal 2004 income statements reflect this writedown.

The Company’s cash balance and short-term marketable securities at the end of fiscal 2004 were $38.2 million, compared with $42.3 million at the conclusion of fiscal 2003.

"We finished the fiscal year having improved our quarterly earnings before discontinued operations in each quarter," said George Cwynar, President and Chief Executive Officer of MOSAID. "Our improving financial strength is partly due to the recovery in the memory markets but it is equally the result of actions we took during the year. We discontinued our networking chip business, practiced tight cost control, and drove a sequential increase in revenues and margins within our Systems Division. We believe that the Company is now on firm financial footing to advance its ambitions in the intellectual property arena through the development and licensing of memory IP; and in the provision of automatic test equipment for the testing of memory."

Operating Highlights

· Signed Patent Licensing Agreement with Philips Electronics

In the fourth quarter, Philips Electronics, one of the world’s largest electronics companies, licensed MOSAID’s patent portfolio for embedded memory applications employed within its semiconductor products. Philips is the first European company to have licensed MOSAID’s patents and the second manufacturer to sign a running royalty rate based patent license.

At the end of the quarter there were fifteen companies on notice for patent infringement and MOSAID is in licensing discussions with a number of these manufacturers. MOSAID has a total of 526 issued or pending patents in its portfolio.

· Design Licensing Group Signed Two Lead Customers for IP Blocks

MOSAID recently announced that its newly formed design licensing group had successfully signed its first two lead customers for its semiconductor IP products. The first agreement was a multi-million dollar contract with a major semiconductor manufacturer for a high-speed embedded DRAM macrocell to be used with its embedded processor products. The second customer, a leader in advanced ASIC technology, signed a multi-use license for MOSAID’s complete memory controller solution consisting of the 333 MHz QDRÒ II SRAM Controller, HSTL (High Speed Transceiver Logic) I/O library and DLL (Delay Locked Loop).

· Lawsuits Advanced Against Samsung and Infineon

Patent infringement cases against Samsung and Infineon progressed during the year on a number of fronts with key milestones being the advancement through fact discovery, and the joint claims construction, or Markman hearing, which was held in January 2004 before Judge Martini of the U.S. District Court for New Jersey. During the fourth quarter, Judge Martini released his Order and MOSAID filed a motion for clarification with regard to a disclaimer term introduced in the Judge’s ruling. This motion was denied by the Court earlier this week. MOSAID also filed a motion for sanctions against Samsung arising from its failure to deliver technical documents related to its DRAM products. Hearings were held on May 10 & 19, 2004 to assess the request for sanctions. The next hearing regarding this matter is scheduled for July 1, 2004.

On May 21, 2004, MOSAID withdrew infringement claims regarding the DLL patent in its current litigation against Infineon to avoid delays which would result from the requirement for separate fact discovery and claim construction proceedings relating to the DLL. There are nine patents common to the Samsung and Infineon cases and it is those patents that were addressed in the January 2004 Markman hearing. Currently, the trial date for the Samsung case is set for December 7, 2004. The Infineon case will be transferred back to the Northern District of California for trial.

· Systems Division Continues to Post Strong Quarterly Profitability

During the second half of the fiscal year the Systems Division returned to profitability, delivering pre-tax profits of 19% in each of the last two quarters. Shipments of the MS4205 and MS4205ex test systems improved on a sequential basis throughout the year, reflecting increasing demand from semiconductor manufacturers to acquire high performance test capability for the latest high-speed Flash and DRAM memories.

In the fourth quarter, the Systems Division released the latest version of its Test Control Software (TCS 6.0), which is embedded within MOSAID’s MS4205 and MS4205ex test systems operating at speeds of up to 832 Mbps. MOSAID believes it is the first company to provide full bit-map capture display and analysis for 4 Gigabit memories, such as the latest NAND Flash devices.

Conference Call and Webcast
Management will hold a conference call and webcast on Thursday, June 17, 2004 at 5:00 p.m. (EST). Participants wishing to access the conference call should dial 1-800-814-4859. 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 24, 2004. To access the rebroadcast, please dial 1-877-289-8525 and enter the passcode 21052495#.

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

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