Court Awards MOSAID Monetary Sanctions in Lawsuit Against Samsung

OTTAWA, Ontario, Canada – September 2, 2004 - MOSAID Technologies Incorporated (TSX:MSD) today announced that Magistrate Judge Hedges has ordered Samsung pay to MOSAID a total of USD $566,839.97 in fees and costs related to MOSAID's successful sanctions motion against Samsung. The Court also prescribed the text of the adverse jury instruction that the jury will receive in the trial of the case relating to Samsung's failure to produce emails in the case.

A copy of the Court's Order and Opinion, together with MOSAID's Motion, is available at http://www.mosaid.com/corporate/investor-relations/litigation-samsung.php

The sanctions granted today are in addition to the order granted by Judge Hedges on July 8, 2004 imposing two other sanctions requested by MOSAID against Samsung: an order that proof of infringement by MOSAID of certain representative Samsung parts of MOSAID's choosing will determine infringement of all Samsung parts; and an order that Samsung is precluded from challenging MOSAID's expert evidence as to the operation of Samsung parts, to the extent that such challenges rest on any assumptions made in performing analysis on representative parts.

About MOSAID
MOSAID Technologies Incorporated is an independent semiconductor company operating through two divisions:

• Intellectual Property – a developer and licensor of memory intellectual property.
• Systems – the leading supplier of engineering memory test and analysis systems to memory manufacturers, foundries and fabless chip 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.