2006 News Releases

"FOR IMMEDIATE RELEASE"

Institutional Shareholder Services Canada Recommends Shareholders Vote for MOSAID Slate of Directors

OTTAWA, Ontario - September 15, 2006 - MOSAID Technologies Incorporated (TSX: MSD) today announced that ISS Canada, the country's leading independent proxy advisory firm, is recommending that its clients vote to elect MOSAID's slate of seven nominees to the Company's board of directors, at MOSAID's Annual and Special Meeting of Shareholders on Friday, September 22, 2006. The ISS report concludes: "…we believe the incumbent board will act in the best interests of the corporation and is the better choice for the long term." ⁽¹⁾

The clients of ISS Canada include institutional investment firms, mutual funds and fiduciaries throughout North America and the world.

Position on share price valuation
In its report issued to clients today, ISS Canada states: "We do not find the (dissidents') argument of weak performance particularly convincing." The report notes that on a three-year horizon, MOSAID delivered to its shareholders an annual cumulative total return of 62.93%, compared with 17.3% from the S&P TSX Capped Technology Index, and 23.3% from the S&P TSX Composite Index.

Position on independent directors
The ISS Canada report points out that if the three dissident nominees were elected, the dissidents would occupy three of the four independent director positions. The dissidents would thus "control the key committees of the board, including any special committee struck to examine and recommend courses of action to the board. By taking control of the committees and thus control of the recommendations made to the board, the dissidents assume a much more powerful position than their minority position suggests."

"We are clearly pleased that ISS Canada, having conducted a thorough review that included presentations from both MOSAID management and the dissident shareholder, affirms MOSAID's slate of directors as the best choice to represent shareholder interests," said Thomas Csathy, Chairman of the Board of Directors. "Our board has the skills and experience to oversee MOSAID's highly competent management team which is delivering superior business performance and is committed to a thorough review of strategic alternatives."

Voting instructions for the Annual and Special Meeting of Shareholders
Shareholders can vote either the WHITE proxy or the BLUE proxy. If shareholders have already voted the WHITE proxy, they do not need to do anything else. MOSAID encourages shareholders who have not yet voted, to vote ONLY the BLUE proxy to elect MOSAID's slate of seven directors. Shareholders are encouraged to vote their BLUE proxy by FAX. Due to the format of the dissident proxy form issued by Loeb, shareholders cannot vote electronically. If shareholders have questions about voting, please contact MOSAID's proxy solicitor, Kingsdale Shareholder Services, toll free at 1-866-289-9929.

⁽¹⁾Permission to use quotations was neither sought nor obtained.

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.

For more information, please contact:

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