MOSAID Settles Samsung Patent Litigation

MOSAID Technologies Incorporated (TSX:MSD) today announced that it has settled its ongoing patent litigation with Samsung Electronics Co., in the District Court of New Jersey, and that Samsung has licensed the MOSAID patent portfolio.

In September 2001, MOSAID sued Samsung for infringement of seven MOSAID
patents. Today MOSAID announced that it has signed an agreement with Samsung,
which settles this litigation and grants Samsung a license to the MOSAID
patent portfolio. Under the terms of settlement, Samsung will receive a five
year license to the entire MOSAID patent portfolio. Samsung will also receive
a license to four MOSAID patent families filed prior to 2000 for the lives of
the patents. Payments for the license will be spread over the five year term
of the license. Under the terms of the agreement financial details are to be
kept confidential.

"This is a major step forward for our patent licensing program," said Jim
Skippen, Senior Vice President, Patent Licensing and General Counsel of
MOSAID. "Now that Samsung, the world's largest DRAM supplier, has settled with
MOSAID, we believe it is more likely that the remaining unlicensed DRAM
companies will follow suit. This license clearly confirms the strength of our
patent portfolio, which contains over 530 issued and pending patents. And
finally, the five year term associated with most of the patents being licensed
to Samsung under this agreement is consistent with our strategy of making our
patent licensing program renewable and ongoing."

"The signing of this license with Samsung is our most significant
licensing achievement to date," said George Cwynar, President and Chief
Executive Officer of MOSAID. "This represents a watershed event for MOSAID,
confirming the potential we envisaged when we launched our patent licensing
program as a key strategic initiative six years ago. It also validates our use
of litigation when necessary to obtain fair licensing terms. We prefer to
settle licenses in the boardroom, but we will pursue our rights in court if
necessary. This agreement with Samsung better positions us to assert our
patents and provides ongoing financial strength and flexibility to maximize
shareholder return."

Samsung joins many other major DRAM and semiconductor manufacturers who
have already licensed MOSAID's patent portfolio, including Fujitsu, NEC,
Toshiba, Hitachi, Mitsubishi Electric, Oki Electric, Matsushita, Winbond
Electronics, Sony Corporation and Royal Philips Electronics.

Settlement of MOSAID's litigation with Samsung does not affect MOSAID's
ongoing patent litigation with Infineon Technologies.

With respect to financial guidance, the Samsung agreement impacts the
Company's expected results for its third quarter and the fiscal year. Driven
principally by the incremental revenues from Samsung, the Company now
forecasts revenues in Q3 fiscal 2005 of $16.5 to 17 million versus its
previous guidance of $4 to 4.5 million. For the fiscal year, revenues are
expected to be $44.5 to 45 million versus previous guidance of $30 to
32 million. Earnings are now expected to be $33.5 to 34 million for Q3 fiscal
2005 versus previous guidance of a loss of $5 to 6 million. However, this
earnings forecast is impacted by the recognition of the Company's remaining
income tax asset, which is more likely than not to be utilized. Without this
adjustment, earnings for Q3 would be $5 to 5.5 million. For the fiscal year,
earnings of $34.5 to 35 million are now forecast, versus previous guidance of
a loss of $6 to 7 million.

Conference Call and Webcast

Management will hold a conference call and webcast today Tuesday, January 18, 2005 at 10:00 a.m. (ET). Participants wishing to access the conference call should dial 1-800-814-4859. The conference call will also be webcast live at http://www.mosaid.com and http://www.newswire.ca , and subsequently archived on MOSAID's web site. A rebroadcast of the conference call will be available until midnight on Tuesday, January 25, 2005. To access the
rebroadcast, please dial 1-877-289-8525 and enter the passcode 21109939(pound key).

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.