SUNNYVALE, Calif., Jan 10, 2006 (BUSINESS WIRE) — Monolithic System Technology, Inc. (MoSys), (NASDAQ:
MOSY), the industry’s leading provider of high-density system-on-chip
(SoC) embedded memory intellectual property (IP), has previously
announced that Chet Silvestri, CEO, will be presenting at the Eighth
Annual Needham Growth Conference at the New York Palace Hotel on
Wednesday, January 11, 2006 at 3:30pm EST. In order to better discuss
the business status of the company while at the Conference, the
company is today announcing that a significant amount of the revenue
associated with the sales of the company’s new 1T-SRAM CLASSIC Macros
will be deferred from the fourth quarter of fiscal 2005 to the first
quarter of fiscal year 2006.

Chet Silvestri, CEO of MoSys, stated, “We had a very strong fourth
quarter in terms of overall bookings and closed significant new orders
in the consumer multimedia and cellular handset segments. Also,
importantly, the majority of the bookings were for our new CLASSIC
Macro products. However, because this is a new product category for us
and we lack shipment experience with the CLASSIC Macros, we will defer
approximately $1.0 million of revenue from the fourth quarter of 2005
into the first quarter of 2006. The revised guidance for the fourth
quarter is for revenue to be in the range of $2.3 million to $2.5
million.”

ABOUT MOSYS, INC.

Founded in 1991, MoSys (NASDAQ: MOSY), develops, licenses and
markets innovative memory technologies for semiconductors. MoSys’
patented 1T-SRAM technologies offer 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 memory results in the technology achieving much higher density
than traditional six transistor SRAMs while using the same standard
logic manufacturing processes. 1T-SRAM technologies also offer the
familiar, refresh-free interface and high performance for random
address access cycles associated with traditional SRAMs. In addition,
these technologies can reduce operating power consumption by a factor
of four compared with traditional SRAM technology, contributing to
making them ideal for embedding large memories in System on Chip (SoC)
designs. MoSys’ licensees have shipped more than 98 million chips
incorporating 1T-SRAM embedded memory technologies, demonstrating
excellent manufacturability in a wide range of silicon processes and
applications. MoSys is headquartered at 755 N. Mathilda Avenue,
Sunnyvale, California 94085. More information is available on MoSys’
website at http://www.mosys.com.

FORWARD LOOKING STATEMENTS

This press release may contain forward-looking statements about
Monolithic System Technology, Inc., (“the Company”) including, without
limitation, benefits and performance expected from use of the
Company’s 1T-SRAM technology.

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
technologies, the timing and nature of customer requests for our
services under existing license agreements, the timing of customer
acceptance of our work under such agreements, the level of commercial
success of licensees’ products such as cell phone hand sets, 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 operations of the Company and other risks identified in the
Company’s most recent annual report on Form 10-K filed with the
Securities and Exchange Commission, as well as other reports that the
Company files from time to time with the Securities and Exchange
Commission. The Company 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(R) is a MoSys trademark registered in the U.S. Patent and
Trademark Office. All other trade, product, or service names
referenced in this release may be trademarks or registered trademarks
of their respective holders.

SOURCE: Monolithic System Technology, Inc.

MoSys, Sunnyvale
Chet Silvestri, 408-731-1800
chet@mosys.com
or
Shelton Investor Relations
Beverly Twing, 972-239-5119 x126
btwing@sheltongroup.com