MOSAID Announces Fourth Quarter and Year-End Results for Fiscal Year 2006

• Stellar Year for MOSAID
• Revenues Increase 28% Year-over-Year; Income from Operations Jumps 59%

OTTAWA, Ontario, Canada – June 22, 2006 – MOSAID Technologies Incorporated (TSX:MSD) today announced financial results for the fourth quarter and fiscal year ended April 30, 2006.

Revenues for the fourth quarter of fiscal year 2006 were $16,872,000, compared to $16,542,000 in the fourth quarter of fiscal year 2005. Net income for the quarter was $3,135,000 or $0.27 per diluted share, compared to net income of $4,546,000 or $0.39 per diluted share for the same period a year ago. Net income in the current quarter was impacted by increased research and development (R&D) expense, largely related to the mid-year acquisition of Virtual Silicon Technology, Inc., and higher sales and marketing expenses, driven by higher legal costs in the Infineon Technologies litigations.

Revenues for fiscal 2006 were $63,899,000, up 28% from revenues of $49,743,000 in fiscal 2005. Income from operations in fiscal 2006 was $22,245,000, up 59% from $13,946,000 for fiscal 2005. Net income for fiscal 2006 was $15,483,000 or $1.34 per diluted share, compared to net income of $37,585,000 or $3.39 per diluted share for fiscal 2005. Results for fiscal 2005 included a one-time income tax recovery of $28,300,000. Excluding the tax recovery, MOSAID earned net income of $9,285,000 in fiscal 2005.

The Company's cash balance and marketable securities at the end of fiscal 2006 totaled $71.3 million, compared with $65.9 million at the end of fiscal 2005.

"Fiscal 2006 was an excellent year for our Company," said George Cwynar, President and Chief Executive Officer, MOSAID. "We recorded strong revenue gains and even better growth in operating profit. We ensured that shareholders directly benefited from our robust financial position by instituting a dividend, and we also repurchased Company shares in the market. Operationally, in the Intellectual Property (IP) Division we completed an important acquisition, continued to develop our semiconductor IP product portfolio, and delivered outstanding results from our patent licensing activities. Our Systems Division released its next-generation tester and posted healthy profits. MOSAID is heading into the new fiscal year having posted six consecutive quarters with over 15% profitability, and operating margins that are among the best in the semiconductor industry."

"One of our key corporate goals is to balance continued investment in the Company with actions that improve direct returns to shareholders," said Richard Boadway, Executive Vice President and Chief Financial Officer, MOSAID. "In fiscal 2006, we demonstrated such balance through reinvestment in the business of an amount roughly equal to the amount committed to direct returns to the shareholder through dividends and the normal course issuer bid. Early in the fiscal year, we became one of the few Canadian high-technology companies to pay dividends, and today we announced in a separate press release that our quarterly dividend is rising for the second time, from $0.20 to $0.25 per share. Last year, we also purchased and cancelled 402,100 MOSAID shares through our normal course issuer bid at a cost of $10.0 million."

Operating Highlights

· Patent Licensing Program Records Key Successes

Building on the Company's success in fiscal 2005, during which licenses with Samsung and Hynix were signed, in fiscal 2006 MOSAID signed a five-year running royalty license to its patent portfolio with a major Taiwan-based company that is a leading manufacturer of dynamic access random memory (DRAM).

In March 2006 MOSAID extended its patent licensing program beyond DRAM into the high-growth portable media market. The Company licensed its patent portfolio for a five-year term - including the right to sublicense - to California-based PortalPlayer, for use in application specific integrated circuits (ASICs) used in MP3 players and other portable media devices. PortalPlayer also purchased 25 MOSAID-issued patents.

Subsequent to year end, on June 14, 2006, MOSAID announced the settlement of all patent litigation with Infineon Technologies AG, and that both Infineon and its memory products spin-off, Qimonda AG, had licensed the MOSAID patent portfolio for a six-year term. MOSAID also strengthened its patent portfolio with the purchase of 50 patents from Infineon and Qimonda. This is MOSAID's first major patent acquisition, and broadens the Company's licensing reach beyond DRAM into areas such as power management and semiconductor process technology.

· Important Semiconductor IP Acquisition, Products Available in 90 nanometer Technologies

In fiscal 2006 MOSAID acquired California-based Virtual Silicon Technology, Inc., a supplier of semiconductor intellectual property (Semiconductor IP). The US$5.35 million acquisition augmented MOSAID's Semiconductor IP business with the addition of complementary product lines, sales channels, and an established customer base.

MOSAID's Semiconductor IP Products group completed the development of all three of its major product lines in leading 90 nanometer technologies, achieving both silicon validation and customer deliveries. These products are: MOSAID Mobilize™, a low-power library including standard cells and static random access memory (SRAM) generators; MOSAID Memorize™, a complete DDR/DDR2 memory controller solution; and MOSAID Maestro™, a highly programmable, fractional phase locked loop (PLL) device. The Company now offers these products in both 90 nm and 130 nm technologies from the world's leading semiconductor foundries.

· Systems Division Delivers Sixth-Generation Memory Tester

In fiscal 2006 MOSAID's Systems Division successfully delivered its new memory test system, the MS5205, used for testing Flash, DRAM and embedded memories, as well as mixed memory/logic devices. The MS5205 is MOSAID's sixth generation of automatic test equipment targeted at engineering test, analysis and bitmapping applications for semiconductor memories. With double the available pins of previous systems and expanded logic test capability, the MS5205 meets customer requirements for testing today's larger and more complex memory devices and embedded memory used in a wide variety of consumer electronics and computer products.

Guidance

Guidance for the Company's revenues in Q1 of fiscal 2007 is $22.0 million to $23.0 million and for net earnings is $6.0 million to $6.5 million. Revenues for fiscal 2007 are forecast to range between $83.0 million and $88.0 million, with net earnings between $21.0 million and $23.0 million. The Company anticipates that approximately 80% of fiscal 2007 revenues will be generated by the Intellectual Property Division.

Financial Tables

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About MOSAID

MOSAID Technologies Incorporated makes semiconductors better through the development and licensing of intellectual property and the supply of memory test and analysis systems. 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; Newcastle upon Tyne, U.K; and Tokyo, Japan. For more information, visit www.mosaid.com.