2002 News Releases

"FOR IMMEDIATE RELEASE"

MOSAID Now Sampling Network Search Engine Based on Industry's Smallest Ternary CAM Cell

New 9Mbit, 100 MHz search engine is world's first high performance ternary CAM based on DRAM technology

OTTAWA, Ontario, Canada – January 28, 2002 – MOSAID Technologies Inc. (TSE: MSD) today introduced the MOSAID Class-ICTM DC9288, a high-performance network search engine, based on the industry's smallest ternary content addressable memory (CAM) cell. Designed for high-speed data packet classification and forwarding applications, the 9-Mbit DC9288 is the world's first high performance ternary CAM based on dynamic random access memory (DRAM) technology.

"With this product, MOSAID has been able to leverage its unique intellectual property, memory expertise and the inherent design efficiency of embedded DRAM technology," explained Romain Saha, Director of Marketing at MOSAID. "Embedded DRAM technology combines the density benefits of DRAM with the performance benefits of high-speed logic. This has enabled us to achieve a higher density CAM solution while maintaining industry leading performance."

Targeted at providers of network routing and switching equipment, the DC9288 can support up to 64 thousand 144-bit entries per device and up to 100 million searches per second. Glueless depth cascading of up to 16 linked devices will support table sizes of up to 1 million, 144-bit entries with no performance degradation.

Fabricated in Fujitsu's 0.18 micron embedded DRAM process, each ternary CAM cell occupies only 5.6 square microns, which is significantly smaller than competing static random access memory (SRAM)-based implementations.

In addition to density, DRAM-based CAMs offer several other performance benefits over SRAM-based offerings. These include lower power consumption and greater resistance to soft errors. Soft errors are caused when background radiation corrupts stored data. If uncorrected, this could lead to system errors such as traffic being forwarded to the wrong address.

"As networking equipment manufacturers become increasingly concerned about problems arising from soft errors, DRAM offers an attractive alternative to SRAM," explained Saha. "Soft error rates in memories are expected to rise as the semiconductor industry moves to more advanced processes and DRAM is inherently less susceptible to soft error rates than SRAM."

MOSAID's DC9288 also features innovative circuit design and power saving techniques that significantly reduce per-megabit power consumption. To minimize table maintenance, the DC9288 includes advanced features such as automatic table aging, auto-learning and the ability to successively output matching entries in order of priority.

"The DC9288 offers a rich feature set and is exhibiting excellent initial yields," said Toru Inaba, General Manager of Fujitsu Wafer Fab and Assembly Services in Tokyo, Japan, MOSAID's production partner for the product.

"With our advanced design and Fujitsu's proven production track record in embedded DRAM technology, we believe that the DC9288 will offer the best combination of price and performance in the CAM market," added George Cwynar, MOSAID President and Chief Executive Officer.

The Class-IC DC9288 is available for sampling now in a 432-pin BGA package. Production quantities will be available in the third quarter of calendar 2002.

About MOSAID
MOSAID Technologies Incorporated is an independent semiconductor company operating through three divisions:

• Semiconductor – a fabless provider of networking chips
• Intellectual Property – a licensor of intellectual property to semiconductor manufacturers worldwide
• Systems – the leading supplier of engineering memory test and analysis systems to memory manufacturers, foundries and fabless chip companies.

Founded in 1975, MOSAID is based in Ottawa, Ontario, Canada, with offices in Santa Clara, California; Newcastle upon Tyne, U.K; and Tokyo, Japan. For more information, visit the Company’s web site at www.mosaid.com.

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.

For more information, please contact:

Investor Inquiries Heidi Vincent Director, Investor Relations & Communications 613-599-9539 x1205 vincent@mosaid.com

Media Inquiries Sara Haskill Communications Specialist 613-599-9539 x1228 haskill@mosaid.com