Mosaid and Infineon Agree to Dismiss Claims Regarding Delay Locked Loop Patent

OTTAWA, Ontario, Canada - May 21, 2004 – MOSAID Technologies Incorporated (TSX:MSD) today announced that it has filed a proposed Stipulated Order of Dismissal for all infringement claims with respect to U.S. Patent No. 6,067,272 (the "DLL patent") covering a Delay Locked Loop (DLL) circuit for use in Synchronous DRAM.

This order was filed with the consent of both Infineon and MOSAID and effectively removes the DLL patent from the current litigation. Pursuant to the agreement signed by the parties, MOSAID is precluded from reasserting the DLL patent against Infineon until the conclusion of the current litigation. The DLL patent is one of the ten patents MOSAID claimed were infringed by Infineon's DRAM products in the current litigation. With the removal of the DLL patent from the Infineon litigation, the remaining nine patents are common to MOSAID's litigation with both Samsung and Infineon. It is these nine patents which were addressed in the January 2004 claim construction, or Markman hearing.

"We have decided to remove the DLL patent from our case against Infineon to avoid delays in the litigation process which would result from the requirement for separate fact discovery and claim construction proceedings relating to the DLL," said George Cwynar, President and Chief Executive Officer for MOSAID. "We continue to believe in the strength of our infringement case against Infineon with the nine patents at issue."

About MOSAID

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

Intellectual Property - a developer and licensor of memory intellectual property.
Systems - the leading supplier of engineering memory test and analysis systems to memory manufacturers, foundries and fabless chip companies around the world.

Founded in 1975, MOSAID is based in Ottawa, Ontario, Canada, with offices in 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.