MOSAID Technologies: Court Denies Remaining Samsung Sanction Appeals

OTTAWA, Ontario, Canada – December 8, 2004 - MOSAID Technologies Incorporated (TSX:MSD) today announced that District Court Judge Martini has denied the appeal of the remaining two sanctions ordered by Magistrate Judge Hedges against Samsung related to its discovery deficiencies.

In a strongly worded decision Judge Martini found that Samsung engaged in spoliation of evidence which the Judge defined as the "destruction or significant alteration of evidence", and approved and adopted Judge Hedges' proposed adverse instruction that the jury will receive at trial relating to Samsung's failure to produce e-mails in the case.

The Court also affirmed the monetary sanction of USD $566,839.97 imposed on Samsung to "compensate MOSAID for the time and effort it was forced to expend in an effort to obtain the discovery it was entitled to."

"This is an important victory for MOSAID in this litigation," said Jim Skippen, MOSAID's Senior Vice President, Patent Licensing and General Counsel. "We believe that Judge Martini's strongly worded opinion confirms that Samsung's conduct, which was characterized by the Court as the 'complete and utter failure to produce e-mails', was a serious failure by Samsung to meet its discovery obligations in this litigation. We are also confident that when the jury hears about Samsung's destruction of e-mail evidence in this case, and infers that this destroyed evidence would have been harmful to Samsung's case, that this will offset the harm caused to MOSAID."

"We are pleased with the confirmation of this important sanction by Judge Martini and the continuing efforts of our legal team to address Samsung's discovery deficiencies," said George Cwynar. As Judge Martini stated in his opinion "Samsung's actions go far beyond mere negligence, demonstrating knowing and intentional conduct that led to the nonproduction of all technical e-mails."

In an October 1, 2004 ruling, Judge Martini denied the appeal of the other two sanctions imposed against Samsung. That ruling confirmed that MOSAID is permitted to choose any Samsung DRAM as a representative part, so long as at least one NMOS DRAM is chosen as a representative part. The ruling also confirmed that Samsung is precluded from challenging MOSAID's expert evidence as to the operation of the representative parts insofar as such challenges rest on any assumptions made as part of performing simulations or other analyses of representative DRAMs.

About MOSAID
MOSAID Technologies Incorporated makes memory better through the development and licensing of intellectual property and the supply of memory test and analysis systems to semiconductor manufacturers, foundries and fabless semiconductor 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.