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2006 News Releases
"FOR IMMEDIATE RELEASE"
MOSAID Appoints Morgan Stanley and CIBC World Markets as Advisors for Review of Strategic Alternatives
OTTAWA, Ontario - September 5, 2006 - MOSAID Technologies Incorporated (TSX: MSD) today announced that it has retained Morgan Stanley and CIBC World Markets to assist in the review of its strategic alternatives, which includes, but is not limited to, a review of capital structure; potential business combinations or strategic partnerships; and the restructuring or sale of parts or all of the business, to maximize the value of the Company for its shareholders.
Driven by its vision to be one of the leading semiconductor intellectual property (IP) companies in the world, MOSAID has achieved great success in licensing its IP. MOSAID is now the seventh largest semiconductor IP company in the world and is on track in its current fiscal year to deliver the best financial results in its 31-year history. Nonetheless, the board of directors and management agree that the shares of the Company are undervalued. The Company as a matter of course regularly reviews its strategic alternatives and has worked for some time with these bankers. However, it has now formally engaged Morgan Stanley and CIBC World Markets to assist with this review.
"As we approach the upcoming annual general meeting of shareholders, we believe more strongly than ever that we must communicate effectively to our shareholders that we are acting responsibly as custodians of shareholder value," said Thomas Csathy, Chairman of the Special Committee of the Board of Directors. "We have now also retained communications, legal and proxy solicitation advisors to ensure that the steps we are taking are both appropriate and effective."
The Company's 2006 annual general meeting will be held on September 22, 2006 at 10:30 a.m. at the Company's head office in Ottawa. The board of directors also confirms that shareholders of record, who purchased common shares of MOSAID after August 1, 2006, the record date for the annual meeting, are entitled to vote at the meeting, subject to complying with conventional procedures, including ensuring that no share may be voted more than once.
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:
Investor Inquiries
Michael Salter
Director, Corporate Communications
613-599-9539 x1205
salter@mosaid.com |
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