DALSA Corporation

DALSA Corporation

May 20, 2005 16:13 ET

DALSA Receives Supply Contract Totaling CDN $3.8 Million From Medical Solutions OEM

WATERLOO, ONTARIO--(CCNMatthews - May 20, 2005) - DALSA Corporation (TSX:DSA), announced today it has received a renewal contract to supply high performance image sensor chips to a leading Original Equipment Manufacturer (OEM) in the medical market. Total sales arising from the contract are expected to be $3.8 million, with one third of the production planned for delivery in 2005, one half planned for delivery in 2006 and the remainder in 2007.

"We are pleased to report this major contract, in this key target market for DALSA," commented Savvas Chamberlain, CEO of DALSA Corporation. "By offering advanced products and customized solutions suitable for the medical and life sciences marketplace, we support our customers as they provide state-of-the-art medical diagnostic equipment."

The high resolution DALSA CCD image sensor is used in one of the most demanding medical diagnostic x-ray applications as a direct replacement for x-ray film. The DALSA image sensors allow the OEM customer to produce x-ray systems that offer reduced patient discomfort and reduced x-ray levels for the patient.

The image sensors are developed manufactured by DALSA's Digital Imaging division at the company's Eindhoven location, in The Netherlands. The semiconductor wafers are manufactured by DALSA's Semiconductor division at the company's Bromont location, in Canada. The x-ray image sensors to be delivered under this contract leverage the DALSA technology as currently used in the replacement of photographic film for professional digital still cameras.

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 over 1000 employees world-wide.

This press release contains forward looking statements based on assumptions, uncertainties and management's best estimates of future events. 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. 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.

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