Corporate Presentation January 2005 Safe Harbor Statement
This presentation may contain forward-looking statements about the Company including, without limitation, benefits and performance expected from use of the Company’s 1T-SRAM technologies.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 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, and the termination of our merger agreement with Synopsys, Inc. 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. Company Background
1T-SRAM licensees’ production
1T-SRAM licensing program
1T-SRAM memory chips
Memory chips
1991-1998 1998 1999 2000 + Target market : SOC
WorldwideWorldwide SOCSOC marketmarket forecastforecast (in(in $$ billions)billions)
4545 7%% : 227 RR: AGG 35 CCA 35
2727
2222 1717
20032003 2004 2004 2005 2005 2006 2006 2007 2007 Source:Source: SemicoSemico ResearchResearch CorporationCorporation SOCs: An Emerging Market
WorldwideWorldwide ICIC andand SOCSOC marketmarket forecastforecast (in(in $$ billions)billions)
$180$180 21%21%
$160$160 14%14% 19%19% 18%18% $140$140 13%13% ICIC MarketMarket ForecastForecast 12%12% $120$120 SOCSOC MarketMarket ForecastForecast
$100$100
$80$80
$60$60
$40$40
$20$20
$0$0 20022002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007
SOCsSOCs asas aa %% ofof worldwideworldwide ICIC marketmarket Source:Source: ETPETP 20032003 SOC Applications
High Density Low Cost
Digital cameras Digital camcorders
Wireless applications
Cell phones
LAN & WAN Switches
Network Routers Video Game Consoles
Consumer products
Low Power Consumption High Speed Embedded Memory Adoption Rate
TransitionTransition toto embeddedembedded memorymemory
10%10% 17%17% 29%29% 48%48%
80%80% % Area Logic
90%90% % Area Memory 83%83% 71%71% 52%52%
20%20%
19991999 2002 2002 2005 2005 2008 2008 2011 2011
Source:SIA,Source:SIA, ITRSITRS 20002000 1T-SRAM Royalty Market Potential
OverOver $900M$900M inin 20072007
SOCSOC marketmarket $45B$45B inin 20072007 4545 3535
2626
2222 ieess alltti 1818 yya RRoo 1414
20022002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007
Source: Semico Research Corporation Best of DRAM and SRAM
EmbeddedEmbedded DRAMDRAM 1T-SRAM Density Density
6T-SRAM6T-SRAM
SpeedSpeed 1T-SRAM is Unmatched
High Density 50-70% smaller
Low Cost 50-70% lower cost
Low Power Consumption 75% lower power consumption
High Speed SRAM performance
Ease of Manufacture Standard logic process
Ease of Use Simple standard interface 1T-SRAM Size Comparison
66 transistortransistor SRAMSRAM storagestorage cellcell 1T-SRAM1T-SRAM storagestorage cellcell Bit Line
Word Line Bit Line Bit Line
Word Line
5050-70%-70% lessless siliconsilicon areaarea OverOver 70%70% lessless costcost 1T-SRAM SOC Cost Savings*
LICENSEELICENSEE MOSYSMOSYS 66 MBITSMBITS SAVINGSSAVINGS ROYALTYROYALTY 6T6T-SRAM-SRAM $3.00$3.00 $1.20$1.20 MEMORYMEMORY 66 MBITSMBITS 1T1T-SRAM-SRAM MEMORYMEMORY
2M2M GATESGATES 2M2M GATESGATES LOGICLOGIC LOGICLOGIC
* Model based on $0.20 per mbit Our Technology is Protected
Proprietary,Proprietary, MoSys-inventedMoSys-invented technologytechnology
ProtectedProtected byby 7373 U.S.U.S. andand 3838 foreignforeign patentspatents
DifficultDifficult toto replicatereplicate
Multi-BankMulti-Bank®® ArchitectureArchitecture PipelinedPipelined Self-timedSelf-timed AccessAccess RefreshRefresh ManagementManagement CircuitryCircuitry LeakageLeakage SuppressionSuppression CircuitryCircuitry 1T-SRAM Product Roadmap
1T1T-SRAM-Q:-SRAM-Q: QuadQuad DensityDensity
1T1T-SRAM-R-SRAM-R :: HighHigh ReliabilityReliability andand QualityQuality
1T1T-SRAM-M-SRAM-M :: LowerLower power,power, mobilemobile applicationsapplications
1T1T-SRAM-SRAM
20012002 2003 1T-SRAM® Technology Options
1T-SRAM-M™1T-SRAM-M™ (Mobile) (Mobile) –– Lowest Lowest RAMRAM standbystandby powerpower forfor mobilemobile applicationsapplications –– 0.13µ 0.13µ standby standby downdown toto 10µA/Mbit10µA/Mbit withwith datadata retentionretention
1T-SRAM-R™1T-SRAM-R™ –– Transparent Transparent ErrorError Correction™Correction™ technologytechnology –– Dramatically Dramatically reducereduce SERSER
1T-SRAM-Q™1T-SRAM-Q™ –– 4X 4X thethe DensityDensity ofof 6T6T SRAMSRAM Soft Error Susceptibility
10,000,000
1,000,000
100,000
10,000
1,000
100 FITs/Mb (200MHz) FITs/Mb
10 1T-R
1 0.25µ 0.18µ 0.15µ 0.13µ
Process Generation
1T-SRAM Pseudo-6T 6T-SRAM
Source: MoSys 1T-SRAM-Q1T-SRAM-Q™™
Cap plate Cap plate G G G G G G STI STI well well 1T-SRAM1T-SRAM 1T-SRAM-Q1T-SRAM-Q
LeveragesLeverages StandardStandard LogicLogic ProcessProcess OnlyOnly 11 extra,extra, non-criticalnon-critical maskmask IncreasedIncreased PerformancePerformance ShorterShorter wireswires == fasterfaster && lowerlower powerpower UsesUses TransparentTransparent ErrorError CorrectionCorrection™™ IncreasedIncreased DensityDensity –– 4X 4X DenserDenser ThanThan 6T6T SRAMSRAM FoldedFolded AreaArea CapacitorCapacitor™(FAC™(FAC ™)™)
17 1T-SRAM Process Life Cycle
0.090.09 µmµm
0.130.13 µmµm 0.15 µm
0.18 µm Density 0.22 µm
0.25 µm
1999 2000 20012002 2003 1T-SRAM Technology Distribution
Custom Macros • Customized designs for optimum performance and cost efficiencies Standard Macros • Standard memory blocks accelerating customers’ time-to-market Technology Partners • Licensees included Fujitsu, TSMC and UMC Acceptance by Industry Leaders
CommunicationsCommunications ConsumerConsumer
Matsushita Communications Industrial
FoundryFoundry Volume Production Proven
More than 100 1T-SRAM licensed macro designs delivered
More than 80 million licensed chips shipped by our licensees Current Applications
•• InIn Production:Production: •• CellCell PhonePhone handsetshandsets •• VideoVideo gamegame consolesconsoles •• DigitalDigital camerascameras andand camcorders*camcorders* •• 10/100/Giga10/100/Giga EthernetEthernet switches*switches* •• FlatFlat panelpanel displaydisplay controllercontroller
•• InIn Development:Development: ••CellCell phonephone handsets*handsets* •• WirelessWireless LANLAN ••CellCell phonephone basebase stationstation •• DigitalDigital imagingimaging devicesdevices ••MP3MP3 PlayersPlayers •• DataData StorageStorage ••DVDDVD controllers*controllers* •• MeasureMeasure andand TestTest EquipmentEquipment ••HomeHome NetworkingNetworking ** IndicatesIndicates multiplemultiple projectsprojects Revenue Streams
Licensing • Fees paid by customers for development of memory design
Royalties • Payments made by customers on product sales utilizing the 1T-SRAM technologies Licensing Activities
Licensing • License Fees • $200k to $500k per macro
RoyaltiesRoyalties •• 2% 2% toto 5%5% ofof SOCSOC sellingselling priceprice •• All All licenseeslicensees paypay royaltiesroyalties •• No No upperupper limitslimits Typical License Agreement
50%50% 25%25% 25%25% LicenseLicense LicenseLicense LicenseLicense feefee paidpaid feefee paidpaid feefee paidpaid RoyaltiesRoyalties 2%2% toto 5%5%
∆∆ ∆∆ ∆∆ ∆∆ ∆∆ //// StartStart MonthMonth 44 MonthMonth 9-129-12 MonthMonth 12-1812-18 MonthMonth 18-2418-24
SignedSigned DesignDesign VerificationVerification ProductionProduction ReceiptReceipt ofof ContractContract DeliveredDelivered ofof DesignDesign StartStart RoyaltiesRoyalties Synopsys - Overview
February 23, 2004 • Signed Merger Agreement with Synopsys @ $13.50/share
April 16, 2004 • Termination of Merger Agreement with Synopsys
April 19, 2004 • MoSys announces $25M stock repurchase program
April 23, 2004 • MoSys initiates lawsuit against Synopsys
July 9, 2004 • Settlement of lawsuit with Synopsys Investment Foundation
ExpandingExpanding MarketsMarkets
+ Unmatched,Unmatched, patentedpatented 1T-SRAM1T-SRAM®® technologytechnology + PremierPremier CustomersCustomers && ExpandingExpanding SalesSales EffortsEfforts + LicenseLicense andand RoyaltyRoyalty BusinessBusiness ModelModel + StrongStrong andand ExperiencedExperienced ManagementManagement TeamTeam Shareholder Growth Value