Sunnyvale, CA, July 26, 2001 – Monolithic System Technology, Inc., (“MoSys,”) (NASDAQ: MOSY) today reported financial results for its second quarter ended June 30, 2001. Net revenue for the quarter was $5.4 million, an increase of 18% from the pervious quarter and nearly double the net revenue for the second quarter of 2000. Contract and royalty revenue was $2.3 million, compared to $0.7 million in the first quarter of 2001 and $0.4 million for the second quarter of 2000. Product revenue was $3.2 million compared to $3.9 million in the previous quarter and $2.3 million for the second quarter of 2000.

Net income in the second quarter of 2001 was $1.4 million, or $0.05 per share, compared to $0.7 million, or $0.03 per share, in the first quarter of 2001. MoSys incurred a net loss of $0.2 million in the second quarter of 2000. Fully diluted shares of 25,630,000 were used in computing second quarter 2001 earnings per share.

On July 3, 2001, MoSys completed the sale of 5,000,000 shares of common stock in an initial public offering at a price of $10.00 per share. On July 9, 2001 the underwriters of the initial public offering exercised their option to purchase an additional 750,000 shares to cover over-allotments. MoSys will receive approximately $51 million of net proceeds from these transactions. The close of the IPO occurred after June 30, 2001 and thus the effect of the IPO is not included in the accompanying financial statements.

“We are pleased with our second quarter results that showed growth in overall revenue and net income in spite of the difficult economic environment for electronics manufacturers,” said Dr. Fu-Chieh Hsu, president and chief executive officer of MoSys. “We made important strides in developing our intellectual property business during the quarter. In April, we announced an expanded partnership with Taiwan Semiconductor Manufacturing Company (TSMC) under which TSMC licensed our 1T-SRAM technology and plans to provide customized 1T-SRAM embedded memory macros to its customers. In addition, we intend to co-develop with TSMC an improved version of our memory technology called 1T-SRAM-X TM. This new technology is intended to significantly increase memory density, allowing MoSys to offer prospective licensees a higher density version of the 1T-SRAM technology.”

Dr. Hsu further stated, “In May, we announced that Nintendo is using 27 megabytes of our 1T-SRAM memory in the production of its new “GAMECUBE” video game console. Nintendo and NEC, who are collaborating in the design and manufacture of the devices for the GAMECUBE, have both licensed our 1T-SRAM technology.”

Q2 Financial Results Webcast

MoSys will host a live webcast to discuss Q2 financial results beginning at 1:45 P.M. (PDT) on Thursday, July 26, 2001. Access to the webcast is provided in the MoSys website at

About MoSys

Founded in 1991, 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-SRAMÒ 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-SRAMÒ 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-SRAMÒ 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

This press release may contain forward-looking statements about the Company including, without limitation, benefits and performance expected from use of our 1T-SRAM technology and future licensing and royalty revenue.

Forward-looking statements are based on certain assumptions and expectations of future events that are subject to risks and uncertainties. Actual results and trends may differ materially from historical results or those projected in any such forward-looking statements depending on a variety of factors. These factors include but are not limited to, customer acceptance of our 1T-SRAM technology, proving our technology in high-volume production of licensees’ integrated circuits, the success of licensees’ products such as the Nintendo GAMECUBE, ease of integration of our 1T-SRAM with other semiconductor functions, ease of manufacturing and yields of devices incorporating our 1T-SRAM, our ability to enhance the 1T-SRAM technology or develop new technologies, the level of intellectual property protection provided by our patents , the vigor and growth of markets served by our licensees and customers, and other risks identified in MoSys’ final Prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b)(1) on June 28, 2001, as well as other reports that MoSys will file from time to time with the Securities and Exchange Commission. MoSys undertakes no obligation to update publicly any forward-looking statement for any reason, except as required by law, even as new information becomes available or other events occur in the future.

1T-SRAM is a MoSys trademark registered in the U.S. Patent and Trademark Office.