Also, the Company has an Employee and Director Stock Option Plan. The exercise price is no lower than the market price on the date of grant. Options granted under the Plan expire within a period of six years of granting, with vesting periods determined by the Human Resources Committee.
The Company employs a fair value method of accounting for all options issued to employees or directors on or after April 27, 2002. The fair value of options issued in the quarter was calculated using the Black-Scholes option pricing model and the following assumptions:
Year Ended April 30, 2008 2007
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Risk free interest rate 2.9% 4.4%
Expected life in years 5.5 5.5
Expected dividend yield 6.2% 4.3%
Volatility 53.81% 66.62%
For the quarter ended April 30, 2008, the Company did not issue deferred share units in lieu of options to directors and officers of the Company under its Deferred Share Unit Plan. Deferred share units vest evenly over a four year period. Deferred share units do not have an exercise price and can only be settled using cash consideration.
8. Business Segment Information
The Company operates in one business segment as a developer and licensor of semiconductor and communications technologies.
Contacts: Investor and Media Inquiries MOSAID Technologies Inc. Michael Salter Director, Investor Relations and Corporate Communications 613-599-9539 x1205 Email Contact / www.mosaid.com
