MoSys to acquire ATMOS

Kanata, Ontario, Canada - ATMOS Corporation entered into a binding Letter of Agreement with Monolithic System Technology Inc. known as MoSys Inc. (NASDAQ: MOSY) accepting their offer for the acquisition of ATMOS. MoSys is a Silicon Valley California based semiconductor company specializing in innovative memory technology for semiconductors. MoSys will pay approximately $15 million in cash together with an earn out arrangement of under $6 million for employee shareholders using MoSys stock. It is expected that the closing will occur in late June or early July and will be subject to normal approvals and closing conditions.

"I am pleased to see this appreciation of the unique technology and products we have built in ATMOS over the last 3 years", said Dr. C. Paul Slaby, CEO of ATMOS, "Our exceptionally strong engineering talent in so called compilable 1T or embedded DRAM design combined with corporate maturity and financial stability at MoSys will result in the world's largest company in this market and will therefore dominate the area of high-density memories for system-on-chip (SoC) applications."

Dr. Fu-Chieh Hsu, Chairman and CEO of MoSys stated, "ATMOS has an experienced embedded memory technology team and we are pleased they will further strengthen our engineering resource. In addition ATMOS' expertise in memory compiler technology, will extend the range of our 1T-SRAM® embedded memory product offerings. This acquisition allows us to accelerate our planned engineering expansion, which will enable us to provide the best possible support to our expanding customer base."

ABOUT ATMOS

Founded in 1994 ATMOS is a semiconductor memory company that focuses on creating high-density embedded memory solutions for system-on-a-chip (SoC) applications. ATMOS offers silicon-proven memory cores to customers in the networking, wireless, graphics and imaging industries that require very large on-chip memory. ATMOS designs, tests, licenses and supports SoC-RAM®, a compiled, embedded memory architecture with flexibility, high density and high speed. For more information on ATMOS please visit www.atmoscorp.com.

ABOUT MOSYS

Founded in 1991, MoSys (NASDAQ: MOSY), develops, licenses and markets innovative memory technology for semiconductors. MoSys' patented 1T-SRAM technology offers a combination of high density, low power consumption, high speed and low cost unmatched by other available memory technologies. The single transistor bit cell used in 1T-SRAM technology results in the technology achieving much higher density than traditional four or six transistor SRAMs while using the same standard logic manufacturing processes.

1T-SRAM technology also offers the familiar, refresh-free interface and high performance for random address access cycles associated with traditional SRAMs. In addition, this technology can reduce operating power consumption by a factor of four compared with traditional SRAM technology, contributing to making it an ideal technology for embedding large memories in System on Chip (SoC) designs.

1T-SRAM technology is in volume production both in SoC products at MoSys' licensees as well as in MoSys' standalone memories. MoSys is headquartered at 1020 Stewart Drive, Sunnyvale, California 94085. More information is available on MoSys' Web site at www.mosys.com.