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DALSA Enjoys Continued MEMS Success, Launches First Phase of New 200mm MEMS Line

DALSA Semiconductor, a premier supplier of specialized and custom wafer foundry services and a division of DALSA Corporation (TSX: DSA), announced today the launch of the first phase of a 200mm MEMS (micro electro mechanical systems) manufacturing line at its semiconductor wafer foundry in Bromont, Quebec, Canada. The announcement closely follows several new MEMS supply contracts the Company has recently received for delivery of product in 2009 and for new product development.

The larger 200mm MEMS wafer size will allow DALSA, one of the world’s leading pure-play MEMS foundries, to increase its production capacity and meet the growing demand from its customers to manufacture next generation MEMS chips that feature increased functionality, smaller package sizes, and lower costs. The increase in demand for MEMS accelerometers, gyros, microphones, and radio frequency devices is being driven largely by the explosive growth in consumer electronics devices including cell phones, PDAs, and game controllers.

“Adding 200mm MEMS capability at Bromont is a natural step forward to meet the production needs of our customers,” commented Brian Doody, CEO of DALSA Corporation. “As we begin to produce 200mm MEMS products, we will continue to focus on the smooth, high-volume operation of our existing 150mm MEMS lines. We have strong ongoing demand from our customers as MEMS devices become an ever greater part of our everyday lives.”

About DALSA Semiconductor
Located in Bromont, Quebec, Canada, DALSA's award winning semiconductor wafer foundry has a proud history of innovation in specialties such as MEMS, CCDs, and high voltage CMOS. As a pure-play foundry, our goal is to deliver innovative foundry capabilities as a manufacturing partner to fabless and fab-lite semiconductor companies to help them succeed with their advanced MEMS or IC designs.

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:

Media Relations:
Kumi Verma
Internet Marketing & MarCom Mgr., Intl.
DALSA Corporation
514-333-1301, ext. 227
Email: [email protected]

Investor Relations:
Patrick Myles
Vice-President, Corporate Communications
DALSA Corporations
519-886-6001, ext. 2177
Email: [email protected]

Some of the statements in this press release, including those relating to the company’s strategies and other statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, or similar expressions, are forward-looking statements within the meaning of securities law. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements are detailed from time to time in DALSA’s periodic reports filed with the Ontario Securities Commission and other regulatory authorities. Investors should read review the Business Risks and Prospects sections of the DALSA 2007 annual Management’s Discussion and Analysis (“MD&A”) to understand the assumptions, risks and uncertainties inherent in forward looking information or statements. DALSA has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Published 2009-01-07

The increase in demand for MEMS products such as accelerometers, gyros, microphones, and radio frequency devices is being driven largely by the explosive growth in consumer electronics devices including cell phones, PDAs, and game controllers.

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