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DALSA to Develop Custom CMOS Image Sensors for Dental X-ray OEM

Waterloo, Ontario, April 12, 2006 - DALSA Corporation (TSX:DSA), an international high performance semiconductor and electronics company, announced today that it has received a contract to develop and supply CMOS image sensor chips for a leading manufacturer of dental x-ray equipment. The contact, which is expected to be completed over the next 12 months, is valued at CDN $1.5 million and has the potential for significant follow-on volume.

The DALSA chips will be "the eyes" of the customer's dental x-ray imaging system. The custom chips will allow the x-ray system to capture more detail with higher contrast, lower radiation doses, and increased patient comfort. This is the fourth custom contract of its kind in the past eight months that DALSA has received from customers in the life sciences imaging end market.

"The rapid transition from film-based imaging to digital imaging in the life sciences marketplace is driving growth in our Digital Imaging Business," said Savvas Chamberlain, CEO of DALSA Corporation. "As seen by the steady flow of contracts recently, the demand for DALSA's custom design and follow-on production capabilities is increasing among life sciences OEMs who are striving to increase the overall performance of their products and to further differentiate themselves in the market."

About DALSA Corporation
DALSA is an international high performance semiconductor and electronics company that 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; 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". The Company has its corporate offices in Waterloo, ON and approximately 1000 employees world-wide.

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]
Internet: www.dalsa.com

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 2005 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 2006-04-12

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