DALSA Corporation (TSX:DSA), an international high performance semiconductor and electronics company, announced today that it has received contracts totaling CDN $1.3 million from Next Instrument, a leading Korean supplier of flat panel display inspection equipment. Under the terms of the contracts DALSA will provide the customer with its latest generation electronic cameras, which are designed to image at very high speeds under low light conditions.

The DALSA cameras, which are expected to be delivered in the first quarter of 2006, will be "the eyes" of Next Instrument's flat panel display inspection system. The customer's system searches for defects on flat panel televisions, notebook PCs, and LCD (Liquid Crystal Display) monitors as they are being manufactured, allowing flat panel manufacturers to maintain better quality control, improve yield and lower costs.

"We're pleased to provide Next Instrument with our very latest high performance cameras," commented Savvas Chamberlain, CEO of DALSA Corporation. "These contracts are early indicators from our key OEMs of strong market acceptance of our new line of 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 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

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.