Waterloo, Ontario - DALSA Corporation (TSX:DSA), an international leader in high performance digital imaging and semiconductors, announced today that it has received approval from the Toronto Stock Exchange (the "TSX") to acquire for cancellation, by way of normal course issuer bid (the "Bid"), up to 951,334 Common Shares of the Company, which, as of August 20, 2007, represent approximately 5% of the issued and outstanding shares. The Bid will commence on August 23, 2007 and expire on August 22, 2008.

The Board of Directors of the Company believes that the market price of its Common Shares could be such that their purchase may be an attractive and appropriate use of corporate funds in light of potential benefits to remaining shareholders.

Purchases will be made by DALSA in accordance with applicable regulatory requirements and the price that the Company will pay for any such Common Shares will be the market price of such shares at the time of acquisition. Pursuant to TSX policies, daily repurchases will be limited to 5,911 Common Shares, other than block purchase exceptions. Purchases will be effected through the facilities of the TSX. DALSA has not purchased any of its Common Shares in the last twelve months.

Related to this effort to benefit shareholders, the Company is also taking a number of steps to streamline its core operations to enhance DALSA's competitiveness and profitability, as announced at the end of July. In the coming weeks, the Company will provide further details.

About DALSA Corporation
DALSA is an international leader in high performance digital imaging and semiconductors with more than 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
E-mail: [email protected]