MOSAID Reports Results for Fourth Quarter and Year-End Fiscal 2010 and Dividend

Quarterly dividend of $0.25 per share payable on July 22, 2010

OTTAWA, Ontario – June 10, 2010 - MOSAID Technologies Incorporated (TSX:MSD) today announced financial results for the fourth quarter and fiscal year ended April 30, 2010.

Q4 Fiscal 2010 Results

• Q4 revenues of $19.9 million exceeded guidance, and rose 10% from $18.0 million in Q4 fiscal 2009
• Q4 pro forma net income of $8.6 million exceeded guidance, and was up 12% from $7.7 million in Q4 fiscal 2009. Pro forma diluted EPS of $0.74, based on 11.6 million diluted shares, compared to $0.75 per diluted share in Q4 fiscal 2009, based on 10.2 million diluted shares
• Q4 GAAP net income of $8.1 million increased 43% from $5.6 million in Q4 fiscal 2009. GAAP diluted EPS of $0.69, based on 11.6 million diluted shares, compared to $0.55 per diluted share in Q4 fiscal 2009, based on 10.2 million diluted shares

Fiscal Year 2010 Results

• Fiscal year 2010 revenues of $71.1 million exceeded guidance, and were up 14% from $62.5 million in fiscal year 2009
• Fiscal year 2010 pro forma net income of $30.5 million exceeded guidance, and increased 44% from $21.2 million in fiscal year 2009. Pro forma diluted EPS of $2.87, based on 10.7 million diluted shares, compared to $2.05 per diluted share in fiscal year 2009, based on 10.3 million diluted shares
• Fiscal year 2010 GAAP net income of $21.8 million increased 272% from $5.8 million in fiscal year 2009. GAAP diluted EPS of $2.04 per diluted share, based on 10.6 million diluted shares, compared to $0.57 per diluted share in fiscal year 2009, based on 10.3 million diluted shares

"MOSAID delivered an excellent fourth quarter, with higher than expected revenues capping a very strong fiscal 2010," said John Lindgren, President and CEO. "For the year, revenues grew due to the higher number of companies making licensing payments, and larger running royalty payments from certain licensees as their own end markets improved. MOSAID's bottom line benefited from a combination of higher revenues and lower than anticipated expenses."

"In fiscal 2010 we achieved key operational objectives that deliver recurring benefits," said Lindgren. "The new semiconductor patent licensing agreement with Samsung helped secure MOSAID's current revenue stream, while new deals with Sharp, Sony and Samsung highlighted the traction in wireless licensing. The introduction of our HLNAND™ chip and module, combined with MOSAID inventors filing a steady stream of patent applications, demonstrated our commitment to innovation and intellectual property development. Finally, the bought deal equity financing, completed in the fourth quarter, gives us the flexibility and additional resources required to pursue patent acquisitions that will better position us for future growth."

"In fiscal 2011, we expect increased revenues from wireless licensing, a ramp in microcomponents licensing, and ongoing patent acquisitions," said Lindgren. "We will continue to enhance MOSAID's resilient business model, which has delivered revenue growth, healthy profits and dividends to shareholders."

MOSAID had cash and marketable securities of $100.8 million at the end of the fourth quarter of fiscal 2010, compared to $70.2 million at the end of the third quarter of fiscal 2010. In Q4 fiscal 2010, MOSAID returned $2.9 million to shareholders in quarterly dividend payments.

On June 10, 2010, MOSAID declared a quarterly dividend of $0.25 per share. The dividend, which is an eligible dividend, is payable on July 22, 2010 to shareholders of record as of July 8, 2010.

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

Fourth Quarter Operational Highlights

Wireless patent licensing: MOSAID signed a five-year, fixed-payment license agreement with Sharp Corporation, covering certain wireless networking products, including handsets and notebook computers. Sharp is the third manufacturer of Wi-Fi enabled handsets to license MOSAID's wireless patents. In total, MOSAID has now signed 14 wireless patent license agreements since 2008.

Equity offering: MOSAID announced and subsequently completed a bought deal equity financing, which resulted in the sale of 1,437,500 common shares, for gross proceeds to the Company of $31,121,875. Proceeds of the offering will be used to fund patent acquisitions and for general corporate purposes.

Patent portfolio development: MOSAID had 2,001 patents and applications at the end of Q4 fiscal 2010, up 17% from 1,709 patents and applications one year ago.

Prior to quarter end, MOSAID purchased from Samsung Electronics Co. a significant number of semiconductor patents, which will be added to the portfolio when the selection process is finalized.

During the quarter, MOSAID purchased a portfolio of power control and memory management patents from a company affiliated with Allied Security Trust of New Jersey. The portfolio consists of five U.S. patents and foreign counterparts. MOSAID received full title to the portfolio for an undisclosed non-material amount, paid immediately. Licensing revenues are not subject to revenue sharing arrangements with the seller. The primary licensing markets for the patents, which teach fundamental concepts in power control and memory management, are microprocessors, Graphic Processing Units (GPUs) and Digital Signal Processors (DSPs).

MOSAID also entered into an exclusive patent licensing agreement with McMaster University of Hamilton, Ontario. The agreement grants MOSAID the exclusive right to sub-license two McMaster patents related to cognitive radio.

HLNAND™ license: Subsequent to quarter end, MOSAID granted to Scanimetrics Inc., a royalty bearing license to develop, manufacture and market MOSAID's HLNAND™ Flash memory chip and module, alone or designed into Scanimetrics' products.

Q1 and Fiscal 2011 Guidance

Management offers the following guidance for the first quarter and full year fiscal 2011:

• Q1 revenues of $17.5 million to $18.5 million
• Q1 pro forma net income of $6.3 million to $7.0 million, or $0.53 to $0.59 per diluted share, based on 11.95 million diluted shares
• Fiscal 2011 revenues in the range of $77.0 million to $80.0 million
• Fiscal 2011 pro forma net income of $27.8 million to $29.3 million, or $2.33 to $2.45 per diluted share, based on 11.95 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, June 10, 2010 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 telecommunications systems. MOSAID counts many of the world's largest technology companies among its licensees. Founded in 1975, MOSAID is based in Ottawa, Ontario. For more information, visit www.mosaid.com and the InvestorChannel.mosaid.com.