Waterloo, Ontario, November 5, 2007 - DALSA Corporation (TSX:DSA), an international leader in high performance digital imaging and semiconductors, announced today that it has received a major contract to develop and deliver custom CMOS image sensors to a leading European digital radiography equipment manufacturer.

The DALSA-designed image sensors will be “the eyes” of the customer’s digital radiography system, which uses high performance digital imaging technology to replace traditional film in a growing range of radiography imaging applications. The image sensors will be supplied in multiple configurations, depending on the specific requirements of each target application.

The contract spans development and production activities over the next four years. The customer has agreed to purchase a significant follow-on volume of sensors within a specific time frame following the successful completion of the development phase. The total contract is valued at approximately CDN $9.0 million.

“We are extremely pleased to work with our customer to deliver the next generation sensors for digital radiography,” commented Brian Doody, CEO of DALSA Corporation. “This contract reflects DALSA’s strong commitment to delivering the industry’s highest performance digital imaging solutions, both CMOS and CCD, and our ability to meet the demanding needs of the world’s leading life science equipment manufacturers.”

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
E-mail: [email protected]
Internet: www.dalsa.com