MOSAID and Caltech Form Patent Licensing Partnership

MOSAID to Exclusively Sub-License Caltech Patents

OTTAWA, Ontario - September 19, 2006 - MOSAID Technologies Incorporated (TSX: MSD) today announced that it has signed a patent licensing agreement with the California Institute of Technology (Caltech) in Pasadena, California to license certain Caltech patents relating to technologies used in wireless communications chips and systems, power management chips, and light emitting diodes.

Caltech has granted MOSAID an exclusive license, along with sublicensing rights, to a number of Caltech patents. MOSAID will exclusively license these patents to third parties and will share with Caltech a portion of the net licensing royalty revenues. MOSAID will also reimburse Caltech for expenses that Caltech incurred in obtaining the patents.

"Establishing a partnership with a world-leading research university is a major achievement for our patent licensing program," said Ted Galanthay, Senior Vice President, Patent Licensing and General Counsel (Acting), MOSAID. "Our expertise in identifying, developing and licensing intellectual property, combined with Caltech's innovative technologies, forms the basis for an on-going licensing relationship that will benefit both parties. We intend to work with Caltech to further identify other patents in their portfolio that we can license on their behalf."

"Licensing alliances will be an increasingly important element of our patent licensing strategy," said George Cwynar, President and Chief Executive Officer, MOSAID. "The partnership with Caltech further broadens the reach of MOSAID's licensing activity, and creates promising opportunities for increasing patent licensing revenues, without a significant investment of capital by MOSAID in research and development."

About MOSAID
MOSAID Technologies Incorporated makes semiconductors better through the development and licensing of intellectual property and the supply of memory test and analysis systems. MOSAID counts many of the world's largest semiconductor companies among its customers. Founded in 1975, MOSAID is based in Ottawa, Ontario, with offices in Santa Clara, California, Newcastle upon Tyne, U.K, and Tokyo, Japan. For more information, visit www.mosaid.com.