SUNNYVALE, Calif.–(BUSINESS WIRE)–Oct. 10, 2003–MoSys, Inc.,
(Nasdaq:MOSY) today announced that it is reducing its revenue outlook
for the third quarter of 2003 to approximately $3.5 million from the
previously announced estimate of $4.5 to $5.0 million for the quarter.
The Company explained that the level of new licensing contracts was
consistent with its earlier expectations, but the revenue recognized
under licensing contracts fell short of its targets. As a result of
the shortfall, the Company will incur its first loss since the second
quarter of 2000.

Commenting on the revised outlook, Fu-Chieh Hsu, Chief Executive
Officer of MoSys stated, “We are disappointed about reducing our
revenue estimate but significant decisions by some of our customers
were delayed or made too late in the quarter for us to recognize
associated revenue.” Dr. Hsu continued, “We are, however, very
encouraged by the recent overall increase in customer activity.
Although our visibility remains limited, and the timing of revenue
recognition under our license contracts is difficult to predict, we
anticipate a significant increase in revenue for the fourth quarter.”

MoSys will release its third quarter 2003 results for the period
ending September 30, 2003 on Thursday, October 16, after the market
closes. Following the release, the Company will host a live audio Web
cast and conference call at 5:15 p.m. Eastern Time.

Dr. Hsu and Chief Financial Officer Mark Voll will discuss the
company’s earnings and operations on the call. Investors and other
interested parties may listen to the live web cast by visiting the
investor relations section of the MoSys website at www.mosys.com. A
Web cast replay will also be available on the company’s Website.

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
50 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 technology,
proving our technology in high-volume production of licensees’
integrated circuits, the level of commercial success of licensees’
products such as the Nintendo GAMECUBE and cell phone hand sets, 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,
the impact of the Company’s recent acquisition of ATMOS Corporation on
future operating results 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 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.

SOURCE: MoSys