Mosaid Closes $14 Million Financing Agreement

OTTAWA, Ontario, Canada – October 29, 2004 - MOSAID Technologies Incorporated (TSX:MSD) today announced that it has successfully completed a private placement of 800,000 common shares, priced at $17.50 per common share to a large Ontario pension fund.

Gross proceeds from this offering before deducting commissions and expenses are $14,000,000. Net proceeds of approximately $13,700,000 will increase the Company's working capital and will be used for general corporate purposes.

Harris Partners Limited, an independent Canadian investment dealer, acted as a financial advisor to MOSAID on this transaction.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The common shares offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold directly or indirectly in the United States or to United States persons, absent registration, or an applicable exemption for the registration requirement of such Act.

About MOSAID
MOSAID Technologies Incorporated makes memory better through the development and licensing of intellectual property and the supply of memory test and analysis systems to semiconductor manufacturers, foundries and fabless semiconductor 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.