• Q1 revenues of $12.7 million, compared to $12.6 million in Q1 fiscal 2008
• Q1 pro forma income of $4.0 million or $0.37 per diluted share, compared to $4.9 million or $0.44 per diluted share in Q1 fiscal 2008
• Q1 GAAP net income of $1.4 million or $0.13 per diluted share, compared to $9.5 million or $0.85 per diluted share in Q1 fiscal 2008. Q1 fiscal 2009 included $168,000 in profit from discontinued operations, compared to $5.8 million in Q1 fiscal 2008

"During the first quarter, we made excellent progress toward achieving key objectives for fiscal 2009. This year's objectives include signing our first patent license for Wi-Fi enabled handsets, and entering into an agreement based on sub-licensed patents," said John Lindgren, President and CEO, MOSAID. "In Q1, we signed important agreements with a U.S.-based fabless semiconductor memory company, with MOSAID receiving cash, patents and exclusive sub-licensing rights."

"The Company continues to guide for revenue growth and a substantial level of profitability in fiscal 2009," added Lindgren. "MOSAID's financial strength and profitability is enabling us, on an ongoing basis, to return significant amounts of cash to our shareholders while investing in R&D activities that are generating both patents and technology licensing opportunities."

MOSAID had cash and marketable securities of $59.0 million at the end of the first quarter of fiscal 2009, compared to $58.4 million at the end of the fourth quarter of fiscal 2008.

The Company continued to return cash to shareholders through its dividend program and normal course issuer bid (NCIB). In Q1, MOSAID returned $2.7 million to shareholders in quarterly dividend payments and expended $3.8 million to re-purchase and cancel 262,340 shares. On May 30, 2008, MOSAID announced an amendment to the terms of its NCIB, to increase the number of common shares allowed to be purchased from 559,583 to 1,118,731, or 10% of the public float of common shares issued and outstanding as of September 13, 2007.

On August 27, 2008, MOSAID declared a quarterly dividend of $0.25 per share. The dividend, which is an eligible dividend, is payable on October 23, 2008 to shareholders of record as of October 2, 2008.

A reconciliation of pro forma income to Canadian generally accepted accounting principles (GAAP) net income is included in the Notes to the Financial Statements accompanying this press release.

Semiconductor Licensing: During the quarter, MOSAID signed three related agreements with a U.S. fabless semiconductor memory company. The agreements consisted of a five-year patent portfolio license agreement, which included cash consideration, a patent transfer agreement, and an exclusive patent sub-licensing agreement. The patents included in the patent transfer and sub-licensing agreements are relevant to DRAM (Dynamic Random Access Memory), SRAM (Static RAM), Flash memory and other technologies.

R&D Subsequent to quarter end, MOSAID displayed its HyperLink NAND (HLNAND™) Flash architecture at the Flash Memory Summit in Santa Clara, California. MOSAID engineers demonstrated a new emulation platform for system development and benchmarking, and presented two technical papers.

Patent portfolioAt the end of the first quarter, MOSAID's portfolio comprised 912 patents and applications, compared with 819 patents and applications one year ago.

Management offers the following guidance for the second quarter of fiscal 2009:

• Q2 revenues of $13.0 million to $14.0 million
• Q2 pro forma income of $3.0 million to $3.5 million, or $0.29 to $0.33 per diluted share

Management is maintaining its guidance for fiscal 2009, as follows:

• Fiscal 2009 revenues of $59.0 million to $61.0 million
• Fiscal 2009 pro forma income of $20.0 million to $21.0 million, or $1.90 to $2.00 per diluted share

MOSAID's revenues result primarily from intellectual property agreements, which by their nature may actually close on dates other than those projected. MOSAID's priority and focus is on obtaining the best terms possible under its agreements, rather than on the particular timing of agreement closure.

About MOSAID
MOSAID Technologies Inc. is one of the world’s leading intellectual property companies. MOSAID develops semiconductor memory technology and licenses patented intellectual property in the areas of semiconductors, and wired and wireless communications systems. MOSAID counts many of the world's largest semiconductor companies among its customers. Founded in 1975, MOSAID is based in Ottawa, Ontario.

Pro forma income, a non-GAAP measure, is GAAP net income adjusted for stock-based compensation, patent amortization and imputed interest, foreign exchange gains and losses on "Other long-term liabilities," and any other non-recurring items. The Company uses pro forma measures internally to evaluate and manage operating performance as well as to forecast and plan. Non-GAAP measures do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers.

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; and the timing and amount of MOSAID's Research & Development expenses.

Factors that could cause actual results to differ materially from expected results include, but are not limited to, the following: the extent of embedded DRAM proliferation in the System-on-a-Chip markets; 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 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 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; consolidation of MOSAID's licensees; natural events, such as severe weather and earthquakes in the locations in which MOSAID 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 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.