• Q1 revenues of $16.2 million, up 28% from $12.7 million in Q1 fiscal 2009
• Q1 pro forma net income of $6.6 million up 65% from $4.0 million in Q1 fiscal 2009. Q1 pro forma EPS of $0.65 per diluted share up 76% from $0.37 in Q1 fiscal 2009
• Q1 GAAP net income of $6.4 million or $0.63 per diluted share, compared with $1.4 million or $0.13 per diluted share in Q1 fiscal 2009

"The substantial increase in Q1 revenues reflects the higher number of licensees contributing to quarterly revenues through both fixed payment and royalty based term licenses," said John Lindgren, President and CEO, MOSAID. "This quarter, a key operational highlight was the introduction of an HLNAND™ silicon chip and memory module, demonstrating the importance of targeted R&D investment to our business model as an intellectual property development and licensing company. MOSAID's objective is to drive market adoption of the HLNAND memory architecture and interface by licensing this innovative technology to third-party manufacturers."

"MOSAID also filed suit against IBM Corporation for patent infringement," said Lindgren. "While we prefer to reach negotiated settlements, the Company is determined to protect its intellectual property rights through the courts, when necessary."

MOSAID had cash and marketable securities of $52.4 million at the end of the first quarter of fiscal 2010, compared to $51.8 million at the end of the fourth quarter of fiscal 2009. In Q1 fiscal 2010, MOSAID returned $2.6 million to shareholders in quarterly dividend payments.

On August 27, 2009, MOSAID declared a quarterly dividend of $0.25 per share. The dividend, which is an eligible dividend, is payable on October 8, 2009 to shareholders of record as of September 25, 2009.

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

Semiconductor memory patent licensing: During the quarter, MOSAID granted a six-year patent license agreement to an unnamed fabless semiconductor memory company. Under the cross-licensing agreement, this company's DRAM (Dynamic Random Access Memory) and embedded DRAM products are licensed for a six-year term commencing August 2009. A series of fixed payments is due to MOSAID during that period. The licensee also transferred to MOSAID ownership of five United States patent families related to DRAM technology.

Innovation: MOSAID began sampling a HyperLink NAND (HLNAND) semiconductor chip and memory module. The devices target the emerging market for SCM (Storage Class Memory) technology, which involves replacing or augmenting rotating magnetic disk storage with solid state storage devices and systems. MOSAID showcased its two new devices - a 64Gb (gigabit) semiconductor chip and a 64GB (gigabyte) memory module - at the 2009 Flash Memory Summit in early August in California.

Patent litigation: MOSAID initiated litigation against IBM Corporation of Armonk, New York, for infringement of six of MOSAID's United States patents. In a complaint filed in the United States District Court of the District of Delaware, MOSAID claims that IBM has infringed and is infringing MOSAID's patents by making and selling microprocessor and Application Specific Integrated Circuit (ASIC) products which practice MOSAID's patents.

Patent portfolio development: MOSAID's portfolio comprised 1,788 patents and applications at the end of the first quarter of fiscal 2010, up 96% from 912 patents and applications one year ago.

Management offers the following guidance for the second quarter of fiscal 2010:

• Q2 revenues of $16.0 million to $17.0 million
• Q2 pro forma net income of $5.7 million to $6.4 million, or $0.55 to $0.62 per diluted share, based on 10.4 million diluted shares

The Company is maintaining its previously announced guidance for fiscal 2010:

• Fiscal 2010 revenues in the range of $65.0 million to $67.0 million
• Fiscal 2010 pro forma net income of $21.5 million to $22.5 million, or $2.07 to $2.17 per diluted share, based on 10.4 million diluted shares

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. MOSAID's revenues depend upon, among other items, the continued ability of its licensees to pay amounts as they become due. The Company takes steps, including monitoring the creditworthiness of its licensees, in order to manage this risk.

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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.

For more information, visit www.mosaid.com.

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, and 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.

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, or insolvency of, licensees or other debtors; 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; 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.