Waterloo, Ontario, August 9, 2005 - DALSA Corporation (TSX:DSA), an international high performance semiconductor and electronics company, and Xerox Corporation have agreed to collaborate in Micro ElectroMechanical Systems (MEMS) technology development.

The development relationship will combine Xerox’s expertise in MEMS microsystem design with DALSA’s advanced MEMS and High-Voltage device manufacturing technologies to demonstrate new classes of MEMS Microsystems offering dramatic cost performance improvements.

“We chose DALSA because we needed a supplier who had the capability to integrate MEMS, and High Voltage CMOS, and that could do wafer level packaging," says Steven B. Bolte, Vice-President and manager of the Xerox Wilson Center for Research and Technology in Rochester, NY. “We have been working with DALSA for nine months on prototype short loop experiments which will enable more rapid product Time-to-Market as technology matures.”

Ralf Brooks, President of the DALSA Semiconductor division, commented, “We are pleased to be working with Xerox, a company with a strong track record for innovation. This collaboration will utilize our toolbox of integratable, advanced MEMS process modules and our capability to integrate CMOS and/or High Voltage circuitry produced from in-house manufactured wafers or from third party deep sub-micron sources.”

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.

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