MOSAID Sues IBM for Patent Infringement

OTTAWA, ONTARIO, Jul 13 (MARKET WIRE) --
MOSAID Technologies Inc. (TSX: MSD) today announced that it has initiated
litigation against IBM Corporation of Armonk, New York, for infringement
of six of MOSAID's United States patents. The suit was filed today in the
United States District Court for the District of Delaware.

In its complaint, 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. MOSAID is claiming infringement of U.S. Patent Nos. 6,603,703;
6,580,654; 6,980,448; 7,038,937; 7,486,580; and 7,535,749. The patents
were granted on MOSAID's fundamental Dynamic Random Access Memory (DRAM)
circuit inventions.

"We are taking this action to protect our intellectual property because
we have been unable to reach a reasonable settlement with IBM, despite
many years of negotiation," said John Lindgren, President and CEO,
MOSAID. "We believe that IBM requires a license to our patents for its
microprocessor and ASIC products that contain embedded DRAM. MOSAID has
licensed virtually 100% of the global commodity DRAM industry, including
signing patent license agreements covering embedded DRAM products. The
value of our patents is internationally recognized."

MOSAID is represented by Howrey LLP, a top U.S. law firm specializing in
trademark and patent litigation.

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.

Forward Looking Information

This document and certain other public documents incorporated by
reference in this document, contain forward-looking statements to the
extent they relate to MOSAID or its management, including those
identified by the expressions "anticipate," "believe," "foresee,"
"estimate," "expect," "intend," "could," "may," "plan," "will," "would"
and similar expressions. Similarly, statements in this document that
describe MOSAID's business strategy, outlook, objectives, plans,
intentions or goals also are forward-looking statements. These
forward-looking statements are not historical facts, but rather reflect
MOSAID's current expectations regarding future events. These
forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results, performance or
achievements to differ materially from those in such forward-looking
statements. Assumptions made in preparing forward-looking statements and
financial guidance include, but are not limited to, the following:
MOSAID's continued expansion of its patent portfolio and of its
opportunities for future patent licensing revenue as a result of MOSAID's
acquisition of patents from third parties and from development of new
inventions; DRAM manufacturers continuing to infringe MOSAID's patents;
the timing and amount of MOSAID's litigation expenses; MOSAID's ability
to sign new patent licensees; current assumptions as to the
identification of products that are unlicensed to MOSAID's wireless
patents; and the timing and amount of MOSAID's Research & Development
expenses.

Factors that could cause actual results to differ materially from
expected results include, but are not limited to, the following: the
extent of embedded DRAM proliferation in the System-on-a-Chip markets;
legal rulings and/or regulatory investigations or complaints having an
adverse impact on the validity, enforceability, potential royalty rates,
and strength or breadth of coverage of MOSAID's essential and/or
nonessential patents (including, but not limited to, adverse results from
litigation or proceedings in patent offices and government regulatory
agencies in various countries around the world); judicial, legislative or
regulatory changes that impair the ability of patent holders to earn
licensing revenues; economic, social, and political conditions in the
countries in which MOSAID or patent licensees operate, including security
risks, health conditions, possible disruptions in transportation networks
and fluctuations in foreign currency exchange rates; non-payment or
delays in payment by, or insolvency of, licensees or other debtors;
variability in patent licensees' sales of licensed products, failure to
maintain and enforce MOSAID's existing patent portfolio, or failure to
obtain valuable patents as a result of research and development
activities, or failure to acquire valuable patents from third parties;
MOSAID's ability to recruit and retain skilled personnel; change in
MOSAID's financial position; consolidation of MOSAID's licensees; natural
events, such as severe weather and earthquakes in the locations in which
MOSAID or patent licensees operate; and changes in the tax rate
applicable to MOSAID as the result of changes in the tax law in the
jurisdictions in which profits are determined to be earned and taxed, the
outcome of tax audits and the ability to realize deferred tax assets.

MOSAID assumes no obligation to update or revise any forward-looking
statements. Additional information identifying risks and uncertainties
affecting MOSAID's business and other factors that could cause MOSAID's
financial results to fluctuate are contained in MOSAID's Annual
Information Form, under the section entitled "Risk Factors," and in
MOSAID's other public filings available online at www.sedar.com.

Contacts:
MOSAID Technologies Inc.
Michael Salter
Director, Investor Relations and Corporate Communications
613-599-9539 ext.1205
salter@mosaid.com

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