Matsushita Electric licenses Mosaid patent portfolio

Mosaid Intellectual Property Licensed for Use By Embedded Memory Products Leader

OTTAWA - July 18, 2002 - MOSAID Technologies Inc. (TSE:MSD) today announced that it has signed a worldwide, non-exclusive patent licensing agreement with Matsushita Electric Industrial Co., Ltd., of Osaka, Japan. Under the terms of this agreement, financial details cannot be disclosed.

Matsushita, well known for its Panasonic, National, Technics, and Quasar brands, is a worldwide leader in the development and manufacture of electronics and digital communications products for a wide range of consumer, business, and industrial needs.

"We are pleased to have licensed Matsushita for the use of MOSAID's intellectual property within its products," said George Cwynar, President and Chief Executive Officer for MOSAID. "This is an important milestone for MOSAID as Matsushita is the first semiconductor company that is not a major commodity DRAM manufacturer to license MOSAID's patent portfolio. This represents an exciting new market for our intellectual property since we believe many companies will use embedded memory in a variety of semiconductor products. The types of products that use embedded DRAM chips include consumer goods such as DVD players and recorders, digital camcorders, and advanced cellular telephones, as well as computing and networking applications."

MOSAID believes that all companies which manufacture mainstream DRAM products, including single and double data rate (DDR) synchronous DRAM, as well as Rambus® DRAM, use its patented circuit technology. There are currently a total of 10 semiconductor manufacturers on notice for patent infringement and MOSAID is engaged in licensing discussions with several of these companies.

To date, MOSAID has signed comprehensive patent licensing agreements with major commodity DRAM manufacturers including Fujitsu, NEC, Toshiba, Hitachi, Mitsubishi Electric and Oki Electric. MOSAID's ability to broaden its licensing opportunities is supported by its growing portfolio of 350 issued or pending patents.

About Matsushita Electric Industrial

Matsushita Electric Industrial Co., Ltd., best known for its Panasonic, National, Technics, and Quasar brand names, is a worldwide leader in the development and manufacture of electronics products for a wide range of consumer, business, and industrial needs. Based in Osaka, Japan, the company recorded consolidated sales of US$51.70 billion for the fiscal year ended March 31, 2002. In addition to the Tokyo and other Japanese stock exchanges, Matsushita's shares are also listed on the Amsterdam, Dusseldorf, Frankfurt, New York, Pacific (NYSE/PCX: MC), and Paris stock exchanges. For more information, visit the Matsushita web site at http://www.panasonic.co.jp/global/top.html .

About MOSAID

MOSAID Technologies Incorporated is an independent semiconductor company operating through three divisions:

• Semiconductor 
- a fabless provider of networking chips
• Intellectual Property
- a licensor of intellectual property to semiconductor manufacturers worldwide
• Systems
- the leading supplier of engineering memory test and analysis systems to memory manufacturers, foundries and fabless chip companies.

Founded in 1975, MOSAID is based in Ottawa, Ontario, Canada, with offices in Austin, Texas; Santa Clara, California; Newcastle-upon-Tyne, U.K; and Tokyo, Japan. For more information, visit the Company's web site at www.mosaid.com .

Forward Looking Information

This document may contain forward-looking statements relating to the Company's operations or to the environment in which the Company operates. Such statements are based on current expectations that are subject to a variety of risks and uncertainties that are difficult to predict and/or beyond MOSAID's control. Actual results may differ materially from those expressed in any forward-looking statements, due to factors such as customer demand and timing of purchasing decisions, product and business mix, competitive products, pricing pressures as well as general economic and industry conditions. MOSAID assumes no obligation to update these forward-looking statements, or to update the reasons why actual results could differ from those reflected in any forward-looking statements. Additional information identifying risks and uncertainties is contained in other public filings with the Ontario Securities Commission.