SUNNYVALE, Calif.–(BUSINESS WIRE)–July 12, 2004–Monolithic
System Technology, Inc. (MoSys), (NASDAQ: MOSY) and Synopsys, Inc.
(NASDAQ: SNPS) announced the settlement of their litigation relating
to the termination by Synopsys of the merger agreement dated February
23, 2004 between the parties. Under the terms of the settlement
agreement, Synopsys and MoSys agreed to settle the merger termination
lawsuit filed by MoSys without further liability or payment to one
another, and MoSys agreed to dismiss the suit. MoSys retains the $10
million termination fee previously paid by Synopsys.

Commenting on this development, Fu-Chieh Hsu, MoSys’ Chairman and
CEO stated, “we remain convinced that the value that brought Synopsys
to us remains in place and that the best action we can take for our
shareholders, customers and employees is to concentrate on building
that value in the future.”

The complete settlement agreement will be included as an exhibit
to the Current Report on Form 8-K to be filed by each Synopsys and
MoSys with the Securities and Exchange Commission.

ABOUT MOSYS

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 four or 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
65 million chips incorporating 1T-SRAM embedded memory technologies,
demonstrating excellent manufacturability in a wide range of silicon
processes and applications. MoSys is headquartered at 1020 Stewart
Drive, 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
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 the Nintendo GAMECUBE and 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, the impact of the
Company’s acquisition of ATMOS Corporation on future operating results
and operations of the Company, the impact of the termination by
Synopsys of its agreement to acquire 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 MoSys files 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(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.

CONTACT: MoSys
Mark Voll, 408-731-1846
markv@mosys.com
or
Investor Inquires:
Shelton IR
Beverly Twing, 972-239-5119 x126
btwing@sheltongroup.com

SOURCE: Monolithic System Technology, Inc.