2006 News Releases

"FOR IMMEDIATE RELEASE"

MOSAID Reports Activist Hedge Fund Demand

OTTAWA, Ontario, Canada – August 16, 2006 - MOSAID Technologies Incorporated (TSX: MSD) today confirmed that Loeb Partners Corporation, a New York City-based hedge fund, submitted a letter to MOSAID's Board of Directors on August 15, 2006, which they also disseminated by way of press release (to view a copy of the Loeb letter, click here) The letter proposes that the Company be sold. Loeb is seeking a formal response by August 24, 2006, the date of MOSAID's announcement of its first quarter fiscal 2007 financial results.

MOSAID's Board has established a special committee comprised of independent directors to handle this matter.

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 and certain other public documents incorporated by reference in this document contain forward-looking statements to the extent they relate to MOSAID or its management, including those identified by the expressions "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "will", "would" and similar expressions. These forward-looking statements are not historical facts, but rather reflect MOSAID's current expectations regarding future events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially from current expectations. Assumptions made in preparing forward-looking statements and financial guidance include, but are not limited to, the following: MOSAID's continued expansion of its patent portfolio and of its opportunities for future patent licensing revenue as a result of MOSAID's acquisition of patents and development of new inventions; DRAM manufacturers continuing to infringe MOSAID's patents; the timing and amount of MOSAID's litigation expenses; and MOSAID's ability to sign new licensees.

Factors that could cause actual results to differ materially from expected results include, but are not limited to, the following: declines or unexpected variations in market growth rates for MOSAID's products; the extent of embedded DRAM proliferation in the System-on-a-Chip markets ;variability in customer deployment schedules from quarter to quarter; shifts in the mix of products sold; MOSAID's ability to negotiate settlements with licensees; unfavourable legal rulings in MOSAID's patent litigations; Foreign currency fluctuations; non-payment by customers/licensees; failure to obtain valuable patents as a result of research and development activities, or to acquire valuable patents; loss of key employees; change in MOSAID's financial position; obsolescence of products or inappropriate targeting to markets that fail to materialize; inability to transition to new technologies to meet customer demand; variations in average sales cycles; key component supply restrictions and/or cost increases; and critical industry transitions.

MOSAID assumes no obligation to update or revise any forward-looking statements. Additional information identifying risks and uncertainties affecting MOSAID's business and other factors that could cause MOSAID's financial results to fluctuate are contained in MOSAID's Annual Information Form, under the section entitled "Risk Factors", and in MOSAID's other public filings available online at www.sedar.com.

For more information, please contact:

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