MOSAID Proceeds With Breach of Contract Complaint

OTTAWA, Ontario – June 10, 2010 - MOSAID Technologies Incorporated (TSX:MSD) today announced that it has served LSI Corporation ("LSI") and Agere Systems, Inc. ("Agere") with a breach of contract complaint. The suit was originally filed on March 9, 2010 in the United States District Court for the District of Delaware, but only served on June 10, 2010.

In February 2007, MOSAID purchased a portfolio of wireless patents from Agere, which was subsequently acquired by LSI. Since acquiring the patents, MOSAID has licensed them to 14 global technology companies.

In its complaint, MOSAID claims that LSI and Agere are in breach of certain express warranty and contract provisions of the patent purchase agreement. These breaches relate specifically to representations made by Agere in the agreement about two system-level vendors, including one of the 14 already licensed by MOSAID. MOSAID is seeking unspecified financial damages from LSI and Agere. The dispute does not involve title to the acquired wireless patents; it does not affect the terms and conditions of any of the 14 licenses already granted, or any licenses which will be granted by MOSAID to third parties in the future; nor does it relate to any Wi-Fi chip or module suppliers. Furthermore, the complaint is not related to the exclusive patent license agreement entered into between MOSAID and LSI on May 6, 2007. The complaint was filed under seal, as the specific terms of the patent purchase agreement are confidential.

"Our hope was that these contractual issues would be quickly resolved through negotiations, thus, our decision not to serve the complaint when it was filed in March," said John Lindgren, President and CEO, MOSAID. "Those negotiations have proven unsuccessful and, as a result, we have concluded that serving the complaint is now necessary. Due to the limited scope of this dispute, our successful wireless licensing program continues unabated."

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.