MOSAID Initiates Patent Infringement Litigation Against Elpida

OTTAWA, Ontario - May 10, 2011 - MOSAID Technologies Inc. (TSX:MSD) today announced that it has commenced patent infringement litigation against Elpida Memory, Inc. of Japan. Two other companies, Buffalo Inc. and Axiontech, are also named as defendants in the suit, which was filed on May 10, 2011, in the United States District Court for the Eastern District of Texas, Tyler Division.

MOSAID asserts that Elpida, Buffalo, and Axiontech have infringed and are infringing six of its semiconductor memory patents by making, using, importing, offering for sale and/or selling Dynamic Random Access Memory (DRAM) and/or other products containing DRAM, in the United States.

Elpida is the world's third-largest producer of commodity DRAM products, with 16% market share and total revenues of US$6.3 billion in 2010.

"Elpida is the only major manufacturer of commodity DRAM products that is currently unlicensed to MOSAID's semiconductor memory patents," said John Lindgren, President and CEO, MOSAID. "We have been in active negotiations with Elpida, but have now concluded that we are unlikely to reach a fair settlement within a reasonable timeframe. As a result, we have filed suit to protect the Company's intellectual property rights and to advance the interests of our shareholders."

"Since 1999, MOSAID has signed 28 patent license agreements for our DRAM and other semiconductor memory patents," said Lindgren. "Not only have we signed patent license agreements with all other major DRAM manufacturers, we have also renewed our agreements with several of these global companies. We firmly believe that Elpida requires a license to MOSAID's memory patents, similar to all the other major DRAM companies."

About MOSAID

MOSAID Technologies Inc. is one of the world's leading intellectual property companies. MOSAID licenses patented intellectual property in the areas of semiconductors and communications systems, and develops semiconductor memory technology. 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, please visit www.mosaid.com and http://investorchannel.mosaid.com

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