Micromem Technologies Inc. - VEMRAM Technology Development Update.

Business Editors

TORONTO--(BUSINESS WIRE)--Oct. 25, 2001

Mezzo Systems of Baton Rouge, LA, a commercial supplier of LIGA process technology, has been working under a development contract with Pageant Technologies (USA) Inc., Micromem's wholly-owned subsidiary, to demonstrate the processes required to produce arrays of vertically oriented columns of magnetic materials based on Micromem's Vertical Element Magnetic RAM ("VEMRAM") technology design. These processes involve the use of high-energy X-rays in the lithography step to form deep, micron scale magnetic structures with extremely vertical sidewalls. The LIGA processes are normally used to form miniature electro-mechanical systems ("MEMS") with high aspect ratio mechanical features.

Dr. Dale Hensley, COO of Micromem, and Richard Lienau, an independent consultant to the VEMRAM(TM) project, believe that the introduction of the LIGA processes will resolve the challenging issues related to high-aspect-ratio magnetic elements. Additional research will help determine if these VEMRAM processes could prove to have advantages in certain applications and thus complement the low-cost, high-volume HEMRAM(TM) technology currently under development at Micromem's facility in Lee's Summit, Missouri.

Micromem is pleased to report that Mezzo Systems has completed the first phase of the VEMRAM technology development project. The initial work involved the fabrication of micron-scale, high-aspect-ratio ferromagnetic cylinders set vertical to the plane of the substrate and copper structures to surround the magnets for the purpose of altering their magnetic state during a data write cycle.

The primary goal of phase one of the project was to fabricate Ni-Fe (Nickel Iron) cylinders with diameters less than 10 microns and heights greater than 100 microns and the fabrication of appropriate Cu (Copper) loop microstructures using the LIGA process.

The process sequence used was to:

     1.   Bond a thick layer of photo resist to the silicon wafers
          used as substrates
     2.   Pattern and etch the photo resist to using X-ray
          lithography
     3.   Electroplate Cu in the voids created during X-ray
          lithography
     4.   Electroplate NiFe in the voids created during X-ray
          lithography

The X-ray exposure was performed at the synchrotron facilities located at the Center for Advanced Microstructures and Devices (CAMD) using a highly collimated X-ray beam.

Mezzo Systems was successful in fabricating NiFe cylinders with diameters that were measured to be as small as 6 microns with heights in excess of 85 microns and write loops with similar aspect ratios. The figures below show SEM (Scanning Electron Microscope) and optical micrographs of typical arrays fabricated in phase one. Hensley and Lienau believe that vertically-oriented arrays of micro-magnets may potentially be used in applications other than for non-volatile memory devices. These include magnetic imaging and displays, calibration of miniature Hall effect probes, magnetic switching devices and optical-magnetic structures.

To view images of the electroplated structure at various angles and magnifications, please visit the eNews website at: www.e-newsservices.com

Micromem Featured in European Newspaper

Micromem is pleased to announce that the company was recently featured in an article published in "Il Sole 24 ORE", one of Italy's national economic & financial newspapers.

The article briefly covers the company's memory technology, radio frequency identification products that would incorporate our technology and the applications in which they can be used. Micromem's establishment of subsidiaries in Europe is also covered in the article.

The article, translated into English, will be added to our website in the coming weeks. You may request a fax copy by calling Shareholder Information at the number shown below. Information

Micromem is now ready to invite customer inputs to define performance parameters for early demonstration devices. Inquiries should be directed to [e-mail].

For shareholder information, please contact Mr. Rick Molinari at tel. [phone]. For information about Micromem please visit our web-site at: www.micromeminc.com.

Statements in this news release that are not historical facts, including statements about plans and expectations regarding products and opportunities, demand and acceptance of new or existing products, capital resources and future financial results are forward-looking. Forward-looking statements involve risks and uncertainties which may cause the Company's actual results in future periods to differ materially from those expressed. These uncertainties and risks include changing consumer preferences, lack of success of new products, loss of the Company's customers, competition and other factors discussed from time to time in the Company's filings with the Securities & Exchange Commission.

No securities regulatory authority has approved or disapproved of this news release.

Listing: OTC-Bulletin Board - Symbol: "MMTIF" Shares issued: 45,935,349 (as of October 25, 2001) SEC File No: 0-26005