2006 News Releases

"FOR IMMEDIATE RELEASE"

Texas Court Issues Notice

OTTAWA, Ontario, Canada – June 1, 2006 - MOSAID Technologies Incorporated (TSX:MSD) today reiterated that it is in ongoing settlement negotiations with Infineon Technologies. As a result of the status of the negotiations, the District Court for the Eastern District of Texas, Tyler Division, has filed a pro forma notice providing that the case will be dismissed within 30 days. While the parties are encouraged by the current status of the negotiations, should a settlement not be achieved, the case will be reinstated and will continue under the normal course.

About MOSAID
MOSAID Technologies Incorporated makes semiconductors better through the development and licensing of intellectual property and the supply of memory test and analysis systems. MOSAID counts many of the world's largest semiconductor companies among its customers. Founded in 1975, MOSAID is based in Ottawa, Ontario, with offices in Sunnyvale and Santa Clara, California; Newcastle upon Tyne, U.K; and Tokyo, Japan. For more information, visit 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 x1202 vincent@mosaid.com

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