Under the terms of the agreement, PortalPlayer has obtained a five-year exclusive license under the MOSAID patent portfolio, including the right to sublicense. PortalPlayer is obligated to pay MOSAID 40% of all gross revenues derived from any sublicenses granted. In addition to signing the license agreement, PortalPlayer has also purchased 25 MOSAID issued patents.

"We are very pleased to have developed an important strategic partnership with PortalPlayer," said Jim Skippen, Senior Vice President of Patent Licensing and General Counsel for MOSAID. "PortalPlayer is a clear leader in the development of chips for today's most popular personal portable media players. This type of relationship represents a new and exciting business opportunity for our patent licensing program as it extends our reach outside of DRAM. PortalPlayer's expertise in the portable media player industry makes it a natural partner for us in our efforts to branch into this new market."

"Signing this agreement with PortalPlayer demonstrates a new dimension to our patent licensing program," said George Cwynar, President and Chief Executive Officer for MOSAID. "It is a further testament to the strength of our patent portfolio, the creativity of our people and our capacity to find new opportunities and markets for our patent licensing program."

About MOSAID

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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.

About PortalPlayer

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PortalPlayer Inc., develops semiconductor, firmware and software platforms for portable multimedia products such as personal media players and secondary display enabled notebook computers. PortalPlayer products empower consumers to quickly and easily manage, enjoy and have access to multimedia content and other forms of information. PortalPlayer is headquartered in San Jose, Calif., with offices in Kirkland, Wash., Taipei, Taiwan and Hyderabad, India.

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.

CONTACT: Investor Inquiries: Heidi Vincent, Director, Investor Relations &
Communications, (613) 599-9539, x1205, Email Contact