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OTTAWA, ONTARIO--(Marketwire - June 10, 2010) - MOSAID Technologies Inc. (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, please visit [ www.mosaid.com ] and [ www.InvestorChannel.mosaid.com ].

Forward Looking Information

This document and certain other public documents incorporated by reference in this document, contain forward-looking statements to the extent they relate to MOSAID or its management, including those identified by the expressions "anticipate," "believe," "could," "estimate," "expect," "foresee," "intend," "may," "plan," "will," "would" and similar expressions. Similarly, statements in this document that describe MOSAID's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. These forward-looking statements are not historical facts, but rather reflect MOSAID's current expectations regarding future events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially from those in such forward-looking statements. Assumptions made in preparing forward-looking statements and financial guidance include, but are not limited to, the following: MOSAID's continued expansion of its patent portfolio and of its opportunities for future patent licensing revenue as a result of MOSAID's acquisition of patents from third parties and from development of new inventions; semiconductor and telecommunications product vendors continuing to infringe MOSAID's patents; the timing and amount of MOSAID's litigation expenses; MOSAID's ability to sign new patent licensees; current assumptions as to the identification of products that are unlicensed to MOSAID's wireless patents; and the timing and amount of MOSAID's Research & Development expenses.

Factors that could cause actual results to differ materially from expected results include, but are not limited to, the following: MOSAID's ability to negotiate settlements with licensees; legal rulings and/or regulatory investigations, audits or complaints having an adverse impact on the validity, enforceability, royalty rates, potential royalty rates, and strength or breadth of coverage of MOSAID's essential and/or nonessential patents (including, but not limited to, adverse results from litigation or proceedings in patent offices and government regulatory agencies in various countries around the world); judicial, legislative or regulatory changes that impair the ability of patent holders to earn licensing revenues; worldwide economic conditions and demand for technology products; economic, social, and political conditions both globally and in the countries in which MOSAID or patent licensees operate, including conflict, war and, other security risks, health conditions, possible disruptions in transportation networks and fluctuations in foreign currency exchange rates; non-payment or delays in payment by or insolvency of licensees or other debtors; variability in patent licensees' sales of licensed products; failure to maintain and enforce MOSAID's existing patent portfolio, or failure to obtain valuable patents as a result of R&D activities, or failure to acquire valuable patents from third parties; MOSAID's ability to recruit and retain skilled personnel; change in MOSAID's financial position; consolidation of MOSAID's licensees; natural events, such as severe weather and earthquakes in the locations in which MOSAID or patent licensees operate; and changes in the tax rate applicable to MOSAID as the result of changes in the tax law in the jurisdictions in which profits are determined to be earned and taxed, the outcome of tax audits and the ability to realize deferred tax assets.

Except as may be required by applicable law or stock exchange regulation, we undertake no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements. If we do update one or more forward-looking statements, no inference should be drawn that additional updates will be made with respect to those or other forward-looking statements. Additional information identifying risks and uncertainties affecting MOSAID's business and other factors that could cause MOSAID's financial results to fluctuate are contained in MOSAID's Annual Information Form, under the section entitled "Risk Factors," and in MOSAID's other public filings available online at [ www.sedar.com ].