MOSAID Reports Results for Second Quarter Fiscal 2010 and Dividend

Quarterly dividend of $0.25 per share payable on January, 2010

OTTAWA, Ontario – Nov 26, 2009 - MOSAID Technologies Inc. (TSX:MSD) today announced financial results for the second quarter of fiscal 2010, ended October 31, 2009.

• Q2 revenues of $17.3 million exceeded guidance and were up 26% from $13.8 million in Q2 fiscal 2009
• Q2 pro forma net income of $8.0 million exceeded guidance and was up 95% from $4.1 million in Q2 fiscal 2009. Q2 pro forma earnings per share (EPS) of $0.78 per diluted share, up 95% from $0.40 in Q2 fiscal 2009
• Q2 GAAP net income was $5.0 million or $0.49 per diluted share, compared with a loss of $3.4 million or $0.33 per diluted share in Q2 fiscal 2009

"The Company's strong financial performance in the second quarter - and through the first half of fiscal 2010 - demonstrates that our diversified patent licensing business is delivering revenue growth, profits and consistent dividends for shareholders, even in an uncertain economic environment," said John Lindgren, President and CEO, MOSAID. "With the three wireless agreements we are announcing today, and the wireless deal signed with Samsung earlier this month, we have now signed 11 wireless patent licensing agreements, showing the continued momentum of this important licensing program. MOSAID has now licensed its wireless patents into the Wi-Fi enabled handset, notebook and wireless networking equipment markets."

MOSAID had cash and marketable securities of $55.2 million at the end of the second quarter of fiscal 2010, compared to $52.4 million at the end of the first quarter of fiscal 2010. In Q2 fiscal 2010, MOSAID returned $2.6 million to shareholders in quarterly dividend payments.

On November 26, 2009, MOSAID declared a quarterly dividend of $0.25 per share. The dividend, which is an eligible dividend, is payable on January 21, 2010 to shareholders of record as of January 7, 2010.

A reconciliation of pro forma net income to Canadian generally accepted accounting principles (GAAP) net income is included in the Notes to the Financial Statements accompanying this press release.

Second Quarter Operational Highlights

Wireless patent licensing: During the quarter, MOSAID signed three wireless patent license agreements with U.S.-based providers of Wi-Fi enabled business and consumer products. MOSAID entered into a five-year, royalty bearing wireless patent license agreement with Grace Digital, Inc. Based in California, Grace Digital provides audio communications products, including high-reliability wireless Internet radios, for the business and consumer markets. MOSAID also signed California's Xirrus, Inc. to a five-year, royalty bearing wireless patent license agreement. Xirrus specializes in wireless networking equipment for enterprise applications. In addition, MOSAID entered into a five-year term license with an unnamed wireless networking equipment company. All other details of the licenses are confidential.

Subsequent to quarter end, MOSAID signed a worldwide non-exclusive wireless patent license agreement with Samsung Electronics Co., Ltd. The fixed-payment term license agreement covers products sold globally by Samsung's Digital Media and Communications Business, including Wi-Fi enabled mobile handsets, notebook and netbook computers, and other system-level communications products.

Patent litigation: On July 13, 2009, MOSAID initiated litigation against IBM Corporation of Armonk, New York, for infringement of six of MOSAID's United States patents. In a complaint filed in the United States District Court of the District of Delaware, MOSAID claims that IBM has infringed and is infringing MOSAID's patents by making and selling microprocessor and Application Specific Integrated Circuit (ASIC) products which practice MOSAID's patents. On September 2, 2009, IBM filed an answer to MOSAID's complaint.

Patent portfolio development: MOSAID had 1,840 patents and applications at the end of the second quarter of fiscal 2010, up 93% from 954 patents and applications one year ago.

Q3 and Fiscal 2010 Guidance

Management offers the following guidance for the third quarter of fiscal 2010:

• Q3 revenues of $16.5 million to $17.5 million
• Q3 pro forma net income of $5.7 million to $6.4 million, or $0.55 to $0.61 per diluted share, based on 10.5 million diluted shares

The Company is maintaining its previously announced revenue guidance for fiscal 2010, and adjusting upwards its pro forma net income guidance.

• Fiscal 2010 revenues in the range of $65.0 million to $67.0 million
• Fiscal 2010 pro forma net income of $22.4 million to $23.1 million, or $2.16 to $2.22 per diluted share, based on 10.4 million diluted shares

MOSAID's revenues result primarily from intellectual property agreements, which by their nature may actually close on dates other than those projected. MOSAID's priority and focus is on obtaining the best terms possible under its agreements, rather than on the particular timing of agreement closure. MOSAID's revenues depend upon, among other items, the continued ability of its licensees to pay amounts as they become due. The Company takes steps, including monitoring the creditworthiness of its licensees, in order to manage this risk.

Conference Call and Webcast

Management will hold a conference call and webcast on Thursday, November 26, 2009 at 5:00 p.m. EDT. The webcast will be live at www.mosaid.com and may also be accessed by dialing 1-800-926-9871. The webcast will be available on mosaid.com for 90 days following the event

About MOSAID

MOSAID Technologies Inc. is one of the world’s leading intellectual property companies. MOSAID develops semiconductor memory technology and licenses patented intellectual property in the areas of semiconductors, and wired and wireless communications systems. MOSAID counts many of the world's largest semiconductor companies among its customers. Founded in 1975, MOSAID is based in Ottawa, Ontario.

For more information, visit www.mosaid.com.