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2007 News Releases
"FOR IMMEDIATE RELEASE"
MOSAID and LSI Sign Exclusive Patent Licensing Agreement
Opens New Licensing Opportunities, Boosts Re-Licensing Campaign
OTTAWA, Ontario – May 8, 2007 - MOSAID Technologies Inc. (TSX:MSD), today strengthened its patent licensing program with the announcement of a 10-year patent licensing agreement with LSI Corporation (NYSE:LSI). Effective immediately, MOSAID has the exclusive right to sub-license more than 50 LSI patents relating to memories, digital signal processors (DSPs), microprocessors, application specific integrated circuits (ASICs), and semiconductor processing technology.
The licensing agreement builds on MOSAID's recent purchase of fundamental wireless patents from Agere, now merged with LSI. Under the terms of this agreement, LSI has granted MOSAID a 10-year exclusive license, with sublicensing rights, to 50 United States patents and their corresponding foreign counterparts. MOSAID will pay LSI a percentage of the net royalty revenues associated with licensing these patents.
"LSI has a tradition of more than 25 years of innovation. Now, as the new owner of Agere and its portfolio of patents, we plan to continue a successful tradition of enhancing shareholder value through IP licensing," said John Veschi, Vice President and General Manager of LSI's IP Business. "MOSAID's licensing expertise was a major factor in our choosing to enter this relationship."
"This agreement provides MOSAID with a patent portfolio that opens up new licensing opportunities with respect to a wide range of semiconductor products, and increases the number of companies that we can license," said Michael Vladescu, Vice President, Licensing and Intellectual Property, MOSAID.
"As an intellectual property company, we are tightly focused on patent licensing," said John Lindgren, President and CEO, MOSAID. "Today's agreement aligns with our strategy to continue building a robust patent portfolio through exclusive licenses, acquisitions, and patents on internally developed technology. It also strengthens MOSAID's campaign to re-license companies with whom we currently have term licenses. Yesterday MOSAID launched HyperLink NAND, a breakthrough, patented Flash memory technology that we will license to semiconductor manufacturers. These two announcements demonstrate our multi-pronged approach to growing the Company's business."
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; current assumptions as to the identification of products that are unlicensed to MOSAID's wireless patents; 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; legal rulings and/or regulatory investigations or complaints having an adverse impact on the validity, enforceability, potential royalty rates, and strength or breadth of coverage of MOSAID's essential and/or nonessential patents (including, but not limited to, adverse results from litigation or proceedings in patent offices and government regulatory agencies in various countries around the world); judicial, legislative or regulatory changes that impair the ability of patent holders to earn licensing revenues; 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; variability in patent licensees' sales of licensed products, 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; 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; and adverse impacts of the current strategic alternatives initiative on customer relationships, employee morale, or management's capacity to focus on business execution.
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.
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