2006 News Releases

"FOR IMMEDIATE RELEASE"

MOSAID Announces Fourth Quarter and Year-End Results for Fiscal Year 2006

Stellar Year for MOSAID
Revenues Increase 28% Year-over-Year; Income from Operations Jumps 59%

OTTAWA, Ontario, Canada – June 22, 2006 – MOSAID Technologies Incorporated (TSX:MSD) today announced financial results for the fourth quarter and fiscal year ended April 30, 2006.

Revenues for the fourth quarter of fiscal year 2006 were $16,872,000, compared to $16,542,000 in the fourth quarter of fiscal year 2005. Net income for the quarter was $3,135,000 or $0.27 per diluted share, compared to net income of $4,546,000 or $0.39 per diluted share for the same period a year ago. Net income in the current quarter was impacted by increased research and development (R&D) expense, largely related to the mid-year acquisition of Virtual Silicon Technology, Inc., and higher sales and marketing expenses, driven by higher legal costs in the Infineon Technologies litigations.

Revenues for fiscal 2006 were $63,899,000, up 28% from revenues of $49,743,000 in fiscal 2005. Income from operations in fiscal 2006 was $22,245,000, up 59% from $13,946,000 for fiscal 2005. Net income for fiscal 2006 was $15,483,000 or $1.34 per diluted share, compared to net income of $37,585,000 or $3.39 per diluted share for fiscal 2005. Results for fiscal 2005 included a one-time income tax recovery of $28,300,000. Excluding the tax recovery, MOSAID earned net income of $9,285,000 in fiscal 2005.

The Company's cash balance and marketable securities at the end of fiscal 2006 totaled $71.3 million, compared with $65.9 million at the end of fiscal 2005.

"Fiscal 2006 was an excellent year for our Company," said George Cwynar, President and Chief Executive Officer, MOSAID. "We recorded strong revenue gains and even better growth in operating profit. We ensured that shareholders directly benefited from our robust financial position by instituting a dividend, and we also repurchased Company shares in the market. Operationally, in the Intellectual Property (IP) Division we completed an important acquisition, continued to develop our semiconductor IP product portfolio, and delivered outstanding results from our patent licensing activities. Our Systems Division released its next-generation tester and posted healthy profits. MOSAID is heading into the new fiscal year having posted six consecutive quarters with over 15% profitability, and operating margins that are among the best in the semiconductor industry."

"One of our key corporate goals is to balance continued investment in the Company with actions that improve direct returns to shareholders," said Richard Boadway, Executive Vice President and Chief Financial Officer, MOSAID. "In fiscal 2006, we demonstrated such balance through reinvestment in the business of an amount roughly equal to the amount committed to direct returns to the shareholder through dividends and the normal course issuer bid. Early in the fiscal year, we became one of the few Canadian high-technology companies to pay dividends, and today we announced in a separate press release that our quarterly dividend is rising for the second time, from $0.20 to $0.25 per share. Last year, we also purchased and cancelled 402,100 MOSAID shares through our normal course issuer bid at a cost of $10.0 million."

Operating Highlights

· Patent Licensing Program Records Key Successes

Building on the Company's success in fiscal 2005, during which licenses with Samsung and Hynix were signed, in fiscal 2006 MOSAID signed a five-year running royalty license to its patent portfolio with a major Taiwan-based company that is a leading manufacturer of dynamic access random memory (DRAM).

In March 2006 MOSAID extended its patent licensing program beyond DRAM into the high-growth portable media market. The Company licensed its patent portfolio for a five-year term - including the right to sublicense - to California-based PortalPlayer, for use in application specific integrated circuits (ASICs) used in MP3 players and other portable media devices. PortalPlayer also purchased 25 MOSAID-issued patents.

Subsequent to year end, on June 14, 2006, MOSAID announced the settlement of all patent litigation with Infineon Technologies AG, and that both Infineon and its memory products spin-off, Qimonda AG, had licensed the MOSAID patent portfolio for a six-year term. MOSAID also strengthened its patent portfolio with the purchase of 50 patents from Infineon and Qimonda. This is MOSAID's first major patent acquisition, and broadens the Company's licensing reach beyond DRAM into areas such as power management and semiconductor process technology.

· Important Semiconductor IP Acquisition, Products Available in 90 nanometer Technologies

In fiscal 2006 MOSAID acquired California-based Virtual Silicon Technology, Inc., a supplier of semiconductor intellectual property (Semiconductor IP). The US$5.35 million acquisition augmented MOSAID's Semiconductor IP business with the addition of complementary product lines, sales channels, and an established customer base.

MOSAID's Semiconductor IP Products group completed the development of all three of its major product lines in leading 90 nanometer technologies, achieving both silicon validation and customer deliveries. These products are: MOSAID Mobilize™, a low-power library including standard cells and static random access memory (SRAM) generators; MOSAID Memorize™, a complete DDR/DDR2 memory controller solution; and MOSAID Maestro™, a highly programmable, fractional phase locked loop (PLL) device. The Company now offers these products in both 90 nm and 130 nm technologies from the world's leading semiconductor foundries.

· Systems Division Delivers Sixth-Generation Memory Tester

In fiscal 2006 MOSAID's Systems Division successfully delivered its new memory test system, the MS5205, used for testing Flash, DRAM and embedded memories, as well as mixed memory/logic devices. The MS5205 is MOSAID's sixth generation of automatic test equipment targeted at engineering test, analysis and bitmapping applications for semiconductor memories. With double the available pins of previous systems and expanded logic test capability, the MS5205 meets customer requirements for testing today's larger and more complex memory devices and embedded memory used in a wide variety of consumer electronics and computer products.

Guidance

Guidance for the Company's revenues in Q1 of fiscal 2007 is $22.0 million to $23.0 million and for net earnings is $6.0 million to $6.5 million. Revenues for fiscal 2007 are forecast to range between $83.0 million and $88.0 million, with net earnings between $21.0 million and $23.0 million. The Company anticipates that approximately 80% of fiscal 2007 revenues will be generated by the Intellectual Property Division.

Conference Call and Webcast
Management will hold a conference call and webcast on Thursday, June 22, 2006 at 5:00 p.m.(EDT). Participants wishing to access the conference call should dial 1-800-796-7558. 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 29, 2006. To access the rebroadcast, please dial 1-877-289-8525 and enter the passcode 21191949#.

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 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 Michael Salter Director, Corporate Communications 613-599-9539 x1205 salter@mosaid.com

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

MOSAID TECHNOLOGIES INCORPORATED

(SUBJECT TO THE CANADA BUSINESS CORPORATIONS ACT)

Consolidated Balance Sheets

(in thousands of Canadian dollars)

See accompanying Notes to the Consolidated Financial Statements.

MOSAID TECHNOLOGIES INCORPORATED

(SUBJECT TO THE CANADA BUSINESS CORPORATIONS ACT)

Consolidated Statements of Operations and Retained Earnings

(in thousands of Canadian dollars, except per share amounts)

See accompanying Notes to the Consolidated Financial Statements.

MOSAID TECHNOLOGIES INCORPORATED

(SUBJECT TO THE CANADA BUSINESS CORPORATIONS ACT)

Consolidated Statements of Cash Flows

(in thousands of Canadian dollars)

See accompanying Notes to the Consolidated Financial Statements.

Segment Information

(in thousands of Canadian dollars)

* Capital assets include intangibles but not goodwill.

MOSAID TECHNOLOGIES INCORPORATED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Quarter and Year-ended April 30, 2006

(tabular dollar amounts in thousands, except per share amounts)

1.  Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance with Canadian generally accepted accounting principles for interim financial information.  Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for annual financial statements. 

New Accounting Pronouncements

Effective May 1, 2005, the Company adopted the guidance in the Canadian Institute of Chartered Accountants (CICA) Handbook Section 1581, “Business Combinations”, which requires all business combinations to be accounted for using the purchase method. In addition, any goodwill and intangible assets acquired in a business combination are accounted for under CICA Handbook Section 3062, “Goodwill and Other Intangible Assets”. This section requires that goodwill and intangible assets with indefinite useful lives are not amortized, while those identified intangible assets with finite useful lives are amortized over their useful lives.

Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that goodwill might be impaired. The impairment test is carried out in two steps. In the first step, the identification of a potential impairment is determined by comparing the fair value of the reporting unit to its carrying value. Fair value is based on estimates of discounted future cash flows or other valuation methods. When the fair value of the reporting unit is less than its carrying value, the fair value is allocated to all its assets and liabilities based on their fair values. The amount that the fair value of the reporting unit exceeds the amounts assigned to its assets and liabilities is the fair value of goodwill. In the second step, impairment is determined by comparing the fair value of goodwill to its carrying value. Any excess of the fair value of goodwill over its carrying value is charged to earnings.

Intangible assets with finite useful lives acquired through business combinations are recorded at their fair value at the date of acquisition. An impairment loss on intangible assets with finite useful lives is recognized when its carrying value exceeds the total undiscounted cash flows expected from its use and disposition. The amount of loss is determined by deducting the asset’s fair value, based on discounted cash flows from its use and disposition, from its carrying values.