• Q2 revenues of $17.3 million exceeded guidance and were up 26% from $13.8 million in Q2 fiscal 2009
• Q2 pro forma net income of $8.0 million exceeded guidance and was up 95% from $4.1 million in Q2 fiscal 2009. Q2 pro forma earnings per share (EPS) of $0.78 per diluted share, up 95% from $0.40 in Q2 fiscal 2009
• Q2 GAAP net income was $5.0 million or $0.49 per diluted share, compared with a loss of $3.4 million or $0.33 per diluted share in Q2 fiscal 2009

"The Company's strong financial performance in the second quarter - and through the first half of fiscal 2010 - demonstrates that our diversified patent licensing business is delivering revenue growth, profits and consistent dividends for shareholders, even in an uncertain economic environment," said John Lindgren, President and CEO, MOSAID. "With the three wireless agreements we are announcing today, and the wireless deal signed with Samsung earlier this month, we have now signed 11 wireless patent licensing agreements, showing the continued momentum of this important licensing program. MOSAID has now licensed its wireless patents into the Wi-Fi enabled handset, notebook and wireless networking equipment markets."

MOSAID had cash and marketable securities of $55.2 million at the end of the second quarter of fiscal 2010, compared to $52.4 million at the end of the first quarter of fiscal 2010. In Q2 fiscal 2010, MOSAID returned $2.6 million to shareholders in quarterly dividend payments.

On November 26, 2009, MOSAID declared a quarterly dividend of $0.25 per share. The dividend, which is an eligible dividend, is payable on January 21, 2010 to shareholders of record as of January 7, 2010.

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.

Wireless patent licensing: During the quarter, MOSAID signed three wireless patent license agreements with U.S.-based providers of Wi-Fi enabled business and consumer products. MOSAID entered into a five-year, royalty bearing wireless patent license agreement with Grace Digital, Inc. Based in California, Grace Digital provides audio communications products, including high-reliability wireless Internet radios, for the business and consumer markets. MOSAID also signed California's Xirrus, Inc. to a five-year, royalty bearing wireless patent license agreement. Xirrus specializes in wireless networking equipment for enterprise applications. In addition, MOSAID entered into a five-year term license with an unnamed wireless networking equipment company. All other details of the licenses are confidential.

Subsequent to quarter end, MOSAID signed a worldwide non-exclusive wireless patent license agreement with Samsung Electronics Co., Ltd. The term license agreement covers products sold globally by Samsung's Digital Media and Communications Business, including Wi-Fi enabled mobile handsets, notebook and netbook computers, and other system-level communications products.

Patent litigation: On July 13, 2009, 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. On September 2, 2009, IBM filed an answer to MOSAID's complaint.

Patent portfolio development: MOSAID had 1,840 patents and applications at the end of the second quarter of fiscal 2010, up 93% from 954 patents and applications one year ago.

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

• Q3 revenues of $16.5 million to $17.5 million
• Q3 pro forma net income of $5.7 million to $6.4 million, or $0.55 to $0.61 per diluted share, based on 10.5 million diluted shares

The Company is maintaining its previously announced revenue guidance for fiscal 2010, and adjusting upwards its pro forma net income guidance.

• Fiscal 2010 revenues in the range of $65.0 million to $67.0 million
• Fiscal 2010 pro forma net income of $22.4 million to $23.1 million, or $2.16 to $2.22 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 net 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 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: MOSAID's ability to negotiate settlements with licensees; legal rulings and/or regulatory investigations, audits or complaints having an adverse impact on the validity, enforceability, royalty rates, 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; worldwide economic conditions and demand for technology products; economic, social, and political conditions both globally and in the countries in which MOSAID or patent licensees operate, including conflict, war and, other 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 R&D 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.