2007 News Releases

"FOR IMMEDIATE RELEASE"

MOSAID Announces Third Quarter Results for Fiscal Year 2007

Asset Sale, Patent Acquisition Sharply Focuses MOSAID as an Intellectual Property Company

OTTAWA, Ontario – February 22, 2007 – MOSAID Technologies Incorporated (TSX:MSD) today announced financial results for the third quarter of fiscal 2007, ended January 31, 2007. Fiscal 2007 third quarter revenues were $18.7 million, up 13% from $16.5 million in the fiscal 2006 third quarter. Third quarter revenues were higher primarily due to the previously announced patent licenses with Infineon Technologies AG and Qimonda AG. Net income for the third quarter was $4.3 million or $0.38 per diluted share, up from $3.6 million or $0.31 per diluted share in the third quarter of fiscal 2006. Third quarter net income was reduced by unusual expenses of $840,000 related to the Company's strategic alternatives initiative. There were no such expenses in the comparative period for fiscal 2006. For the first nine months of fiscal 2007, revenues were $61.3 million, up 30% from $47.0 million for the comparable period in fiscal 2006. Net income in the first nine months of the current fiscal year was $15.7 million or $1.38 per diluted share, up 28% from $12.3 million or $1.07 per diluted share in the first nine months of fiscal 2006. Costs related to the strategic alternative initiative totaled $2.0 million in the first nine months of fiscal 2007. There were no such costs in the comparative period last year. MOSAID today executed on two elements of its strategic alternatives initiative, announcing a Systems Division asset sale and business wind-down, and a major acquisition of wireless patents. (See the two press releases at www.mosaid.com) The Company announced the sale of the principal assets of its automatic test equipment (ATE) business to Teradyne, Inc. for $20 million in cash, and the orderly wind-down of this business. MOSAID anticipates that this transaction will result in a pre-tax gain, including the impact of discontinued operations, of approximately $13 million, reportable in the fourth quarter, ending April 30, 2007. In addition, MOSAID announced the purchase of a valuable portfolio of essential patents related to WiFi and WiMAX technology from Agere Systems. The Company believes that the licensing revenue from this portfolio of 23 issued and pending patents has the potential to surpass the revenues that MOSAID has earned to date from its DRAM memory patents. "The asset sale and patent acquisition are important steps in MOSAID's strategic alternatives initiative, resulting in a Company that is sharply focused on developing and licensing intellectual property," said George Cwynar, President and Chief Executive Officer, MOSAID. "As we continue to pursue the strategic alternatives initiative, we are also taking steps today to rationalize our Semiconductor Intellectual Property products portfolio." "In the third quarter, we continued to demonstrate steady financial performance while engaged in the strategic alternatives initiative, and we remain on track to deliver the best financial results in the Company's history," said Richard Boadway, Executive Vice President and Chief Financial Officer, MOSAID. "In the Intellectual Property (IP) Division, the Patent Licensing program delivered excellent results but the Semiconductor IP products group again performed below expectations. It is our view that the DDR memory controller and PLL timing product portfolios are competitive in the marketplace. However, our Mobilize product family has not met with market acceptance, so we are stopping further development and reducing our cost structure accordingly, which will require a restructuring charge of $6 million to $6.5 million. MOSAID's patents on the low-power circuit techniques of Mobilize may yield an attractive future patent licensing opportunity." The wind-down of the Systems Division on April 30 and staff reductions in the Semiconductor IP and corporate groups will result in a staff reduction of 57 employees from the current base of 116 employees. At the end of the fiscal 2007 third quarter, the Company had cash and marketable securities of $63.6 million, compared with $67.2 million at the end of the second quarter. Working capital declined marginally in the quarter. MOSAID expects net cash proceeds from the sale of Systems Division assets to be $16 million, with cash costs of the announced Semiconductor IP restructuring actions to be approximately $1 million, resulting in a net cash gain of approximately $15 million. Operating Highlights The Intellectual Property Division recorded another highly profitable quarter, with third quarter revenue of $14.8 million and segment profit of $6.5 million or 44% of segment revenues. During the quarter, MOSAID acquired a portfolio of nine patents related to Pseudo-Static Random Access Memory (PSRAM) technology. MOSAID also announced general availability of the industry's first complete Double Data Rate (DDR) Synchronous Dynamic Random Access Memory (SDRAM) controller and interface IP, as well as Phase Locked Loop (PLL) IP product, in leading 65nm process technology. These new products position MOSAID well in their respective semiconductor IP market segments. As anticipated, results for the Systems Division improved in the third quarter. A segment profit of $50,000 on revenues of $3,960,000 compared favourably to a segment loss of $717,000 on revenues of $3.1 million for the fiscal 2007 second quarter. MOSAID anticipates that the Systems Division will make a positive contribution of $1 million to $2 million in the fourth quarter, as it is wound down and reported as a discontinued operation. On February 5, 2007, in the United States District Court for the Northern District of California, San Jose Division, Judge Fogel issued an order denying MOSAID's and Infineon's joint motion to vacate Judge Martini's summary judgment and Markman orders. Judge Fogel's order leaves the matter of collateral estoppel with regard to these rulings to be decided by the court in the Eastern District of Texas. At the end of the third quarter, MOSAID's patent portfolio grew to 720 patents issued or pending, up from 687 at the end of the second quarter. Approximately 40% of MOSAID's issued or pending patents relate to memory technology and 60% to other technology areas. MOSAID had 15 companies on notice for patent infringement and was in litigation with four of these companies at the end of the third quarter. Guidance Guidance for MOSAID's revenues in the fourth quarter of fiscal 2007 is $13.5 million to $14.0 million and for net earnings is $5.5 million to $6.5 million. These figures do not include a provision for depreciation of the newly acquired patent portfolio. Fiscal 2007 revenues are forecast to range between $64.7 million and $65.2 million, compared with earlier guidance of $80 million to $85 million, of which Systems Division revenues would have been $15 million to $16 million. Net earnings are expected to range from $21 million to $22 million, compared with earlier guidance of $18 million to $20 million, as a result of the sale of Systems Division assets and the Semiconductor IP restructuring expense. Because the accounting for the Systems Division's results necessitates a reclassification of these results as discontinued operations, represented as one line on the income statement, revenues will be reduced, both for the fourth quarter and the full fiscal year. Conference Call and Webcast Management will hold a conference call and webcast on Thursday, February 22, 2007 at 5:00 p.m. (EST). Participants wishing to access the conference call should dial 1-800-591-7539. . The webcast will be 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, March 1, 2007. To access the rebroadcast, please dial 1-877-289-8525 and enter the passcode 21219466#. About MOSAID MOSAID Technologies Incorporated makes semiconductors better through the development and licensing of intellectual property. 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. 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," "foresee," "estimate," "expect," "intend," "could," "may,", "plan," "will," "would" and similar expressions. Similarly, statements in this document that describe MOSAID's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. 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 those in such forward-looking statements. 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 from third parties and from development of new inventions; DRAM manufacturers continuing to infringe MOSAID's patents; the timing and amount of MOSAID's litigation expenses; MOSAID's ability to sign new patent licensees; the value proposition associated with MOSAID's products relative to its competition in the market; the timing and amount of MOSAID's Research & Development expenses; the timing of MOSAID's new product introductions; MOSAID's ability to develop, manufacture, and market innovative products in a rapidly changing technological environment; and MOSAID's ability to maintain and enhance existing customer relationships. 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 MOSAID products sold; unfavorable legal rulings in MOSAID's patent litigations; economic, social, and political conditions in the countries in which MOSAID, its customers, suppliers, or patent licensees operate, including security risks, health conditions, possible disruptions in transportation networks and fluctuations in foreign currency exchange rates; non-payment or delays in payment by customers/licensees; failure to maintain and enforce MOSAID's existing patent portfolio, or failure to obtain valuable patents as a result of research and development activities, or failure to acquire valuable patents from third parties; MOSAID's ability to recruit and retain skilled personnel; 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; critical industry transitions; consolidation of MOSAID's customers and/or licensees; natural events, such as severe weather and earthquakes in the locations in which MOSAID, its customers, suppliers, or patent licensees operate; and changes in the tax rate applicable to MOSAID as the result of changes in the tax law in the jurisdictions in which profits are determined to be earned and taxed, the outcome of tax audits and the ability to realize deferred tax assets. 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

Media Inquiries Colleen McGuire Communications Specialist 613-599-9539 x1228 mcguire@mosaid.com

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