California Court Grants MOSAID'S Motion to dismiss Micron's complaint for declaratory judgment

Court also denies motion by Micron and ProMOS to intervene in Infineon case

OTTAWA, Ontario - October 25, 2006 - MOSAID Technologies (TSX: MSD) today announced that United States District Judge Jeremy Fogel, following an October 20, 2006 hearing, has issued two orders pertaining to motions brought by MOSAID, Micron Technology, Inc. and ProMOS Technologies Inc. before the Northern District of California Court, San Jose Division.

The first order grants MOSAID's motion to dismiss Micron's Complaint for Declaratory Judgment for lack of subject matter jurisdiction on the grounds that MOSAID's conduct was not sufficient to give rise to a reasonable apprehension of imminent litigation against Micron. Micron filed its complaint in the Northern District of California on July 24, 2006, with MOSAID filing its motion to dismiss on July 27, 2006.

The second order issued by Judge Fogel denies Micron's and ProMOS' motions to intervene in the case between MOSAID and Infineon Technologies. The remaining issue before the court in this case is the joint motion filed by MOSAID and Infineon to vacate the claim construction and summary judgment rulings, pursuant to the settlement agreement between the parties. Judge Fogel's order permits Micron and ProMOS to participate as 'amici curiae' for the limited purpose of presenting arguments as to why the motion to vacate should not be granted. The Court has scheduled an oral hearing on the matter for December 22, 2006.

"As a result of these orders, we will likely reach an earlier resolution in our ongoing litigation for patent infringement against Micron, ProMOS and Powerchip Semiconductor Corporation in the Eastern District of Texas, Marshall Division," said George Cwynar, President and Chief Executive Officer, MOSAID.

Copies of the two court orders are available at www.mosaid.com., under Investor Relations, Litigation Updates.

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.