DALSA Receives CDN $1.7 Million Contract for Custom Chips

DALSA Corporation (TSX:DSA), an international high performance semiconductor and electronics company, today announced it has received a contract valued at CDN $1.7 million from a leading Asian scientific research facility. Under the terms of the contract, DALSA will design a custom CCD image sensor chip and deliver follow-on production units throughout 2006. There is also a potential to receive subsequent orders from the customer upon the successful completion of this project.

“I am very pleased that DALSA technology continues to make successful inroads into Asia. This contract is yet another excellent example of how leadership in technology enables Canadian companies to successfully expand into new world markets,” commented Savvas Chamberlain, CEO of DALSA Corporation.

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.

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For more information, please contact:
Patrick Myles
Director, Corporate Communications
DALSA Corporation
Tel: (519) 886-6001 Ext. 2177
Fax: (519) 886-3972
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.