DALSA Corporation (TSX:DSA) announced today that it has received significant new contracts in its Digital Imaging and Semiconductor business units. The majority of the orders, which cover key end markets such as flat panel display and MEMS, are expected to be delivered during 2008. 

“Since the beginning of November, we have seen a steady increase in the volume of orders for delivery in 2008,” commented Brian Doody, CEO of DALSA Corporation. “We are particularly excited to see a much anticipated recovery in activity in the flat panel display capital equipment market, driving orders for delivery in the first half of the coming year. In our Semiconductor Business, our recent MEMS purchase orders typify the continued strong demand at our foundry for our MEMS volume production capability. I am also pleased to report that the increase in orders is not limited to these end markets, as we are also seeing an increase in orders in other areas, including the other large contracts highlighted below.”

The following summarizes the significant orders/contracts received by DALSA since the beginning of November:

• More than $3 million in orders from flat panel display inspection equipment OEMs to supply cameras and image processing boards, to be delivered in the fourth quarter of 2007 and in the first half of 2008.
• A $3.9 million order to deliver production MEMS devices for consumer applications, starting in the second quarter of 2008. This most recent contract is a follow-on to a production order the customer placed in October for delivery in the fourth quarter of 2007 and the first quarter of 2008.
• A contract, valued at $1.2 million, for the development in 2008 of a high performance MEMS process, slated to enter production in early 2009.
• Two Application Specific Contracts totaling $3.3 million for the custom development and delivery of high performance custom image sensor chips for proprietary applications. These developments will begin immediately and will be completed over the next three to four years.
• A $4.8 million production order in the Semiconductor division to manufacture a custom ASIC (application specific integrated circuit) for delivery in 2008. This is a follow-on to a $3.4 million order the customer placed in October for delivery in the fourth quarter of 2007 and in 2008.

 About DALSA Corporation

DALSA is an international leader in high performance digital imaging and semiconductors with approximately 1000 employees world-wide. Established in 1980, the company designs, develops, manufactures, and markets digital imaging products and solutions, in addition to providing semiconductor products and services. DALSA's core competencies are in specialized integrated circuit and electronics technology, software, and highly engineered semiconductor wafer processing. Products and services include image sensor components (CCD and CMOS); electronic digital cameras; vision processors; image processing software; and semiconductor wafer foundry services for use in MEMS, high-voltage semiconductors, image sensors and mixed-signal CMOS chips. DALSA is listed on the Toronto Stock Exchange under the symbol “DSA” and has its corporate offices in Waterloo, Ontario, Canada.

For more information, please contact:

Patrick Myles
Director, Corporate Communications
DALSA Corporation
Tel: (519) 886-6001 Ext. 2177
Fax: (519) 886-3972