DALSA Announces Operational Improvements; Appoints Brian Doody as Chief Operating Officer.

WATERLOO, Ontario -- DALSA Corporation (TSX:DSA), an international high performance semiconductor and electronics company, announced today organizational changes to its operations and the appointment of Brian Doody to the newly created position of Chief Operating Officer. Under the new structure, Mr. Doody will be responsible for overseeing all of the Company's internal operations, including both the Digital Imaging and Semiconductor businesses, and on increasing the efficiency and productivity of the business. Corporate strategy, strategic technology direction, and long term planning will continue to be led by DALSA CEO, Savvas Chamberlain.

"Our Company has grown and is evolving, so now is the right time to place a clear strategic focus at the executive level on our overall operations." said Dr. Chamberlain. "Brian, through his new role as Chief Operating Officer, will focus exclusively on operations, ensuring that we achieve our goals of increasing revenue, generating cash from operations, and providing a level of profitability consistent with our business model. The breadth and depth of Brian's 20 years experience at DALSA certainly qualify him for this new role. Brian understands DALSA's business, technology, industry and company culture, and he has the skills to help execute on our plans and programs as we move forward."

Since 1999, Brian Doody served as President of DALSA Digital Imaging, responsible for the Company's $100 million digital imaging business. He served as Vice President of Operations from 1997 and Vice President of Manufacturing and Engineering from 1986. He has participated in and managed Application Specific Contracts and product developments, working closely with customers and markets to ensure good product and market fit. He has also participated in evaluating and integrating six acquisitions that the Company has completed from 1999 to present. A professional engineer, Mr. Doody has a B.Sc. in Electrical Engineering from Queen's University and an M.A.Sc. from University of Waterloo.

As part of the announced changes, the Company is taking steps to transform its DALSA Semiconductor business into a complete semiconductor operation, which can offer external customers semiconductor manufacturing services as well as sensor and integrated circuit (IC) components. As a first step, the DALSA Professional Imaging and the CMOS IC business units will now report to Ralf Brooks, President of DALSA Semiconductor, who in turn will report to Brian Doody. "It was a natural progression for us to establish a complete semiconductor operation at this time," commented Dr. Chamberlain. "We're confident that our wider product offering, which extends from wafer processing to finished ICs, will further establish our market presence and lead to increased revenue, greater operational efficiency, and improved profitability."

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.

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.

DALSA Corporation (TSX:DSA)