Sunnyvale, CA, (January 16, 2002) – Monolithic System Technology, Inc. (“MoSys”) (NASDAQ:MOSY) stated today that delays in reporting of SEC filings of proposed sale of securities under Rule 144 apparently have caused confusion about insider trades of MoSys shares. Specifically, over the last few days news items have been published listing recent receipt of Form 144 (Proposed Sale of Securities) filings at the SEC, which are related to trades completed in November of 2001. The delay in reporting the Form 144 filings appears to be related to the delays in receipt of mail at the SEC. On January 8, 2002 the SEC published a press release describing the problem and stated, “Due to U.S. Postal Service security procedures for mail to be delivered to government agencies, filings and other documents mailed to the Commission are being received on a delayed basis.”

The confusion about MoSys insider trades has arisen because the recent reports of filings make it appear as if there are significant new filings of proposed insider sales on Form 144 when in fact the filings relate to sales made in November 2001.

The insider sales to date have all occurred in November 2001 and include: Fu-Chieh Hsu, CEO 275,000; Wing Leung, CTO 200,000; Denny Ko Director and Principal of DynaTech Capital, 225,000; Carl Berg, Director and Principal of West Coast Ventures, 375,000; Mark Jones, VP 50,000; Andre Hassan,VP 50,000; Judson Mitchell,VP 50,000. It should be noted that the Carl Berg sale and one reported under West Coast Ventures are the same sale.

About MoSys:

MoSys develops, licenses and markets innovative memory technology for semiconductors. MoSys’ patented 1T-SRAMÒ technology offers a combination of high density, low power consumption, high speed and low cost unmatched by other available memory technologies. The single transistor bit cell used in 1T-SRAM technology results in the technology achieving much higher density than traditional four or six transistor SRAMs while using the same standard logic manufacturing processes. 1T-SRAM technology also offers the familiar, refresh-free interface and high performance for random address access cycles associated with traditional SRAMs. In addition, this technology can reduce operating power consumption by a factor of four compared with traditional SRAM technology, contributing to making it an ideal technology for embedding large memories in System on Chip (SoC) designs. 1T-SRAM technology is in volume production both in SoC products at MoSys’ licensees as well as in MoSys’ standalone memories. MoSys is headquartered at 1020 Stewart Drive, Sunnyvale, California 94085. More information is available on MoSys’ website at www.mosys.com.

Note for Editors:

1T-SRAM® is a MoSys trademark registered in the U.S. Patent and Trademark Office. All other trademarks or registered trademarks are the property of their respective owners.