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Tessera Gratified That Starboard Admits Direct Conflict of Interest



  Tessera Gratified That Starboard Admits Direct Conflict of Interest

Starboard Reveals Details of its Plan to Convert Tessera into a “Patent Troll”

   Tessera’s Plan Is Superior, Already Being Executed and Showing Progress

Business Wire

SAN JOSE, Calif. -- May 7, 2013

Tessera Technologies, Inc. (NASDAQ:TSRA) ("Tessera" or the "Company") today
issued a statement in response to Starboard Value LP’s (“Starboard”) open
letter to Tessera stockholders in connection with the Company’s 2013 Annual
Meeting scheduled on May 23, 2013. The Company urges stockholders to not be
misled by Starboard’s misinformation campaign and to vote FOR the Tessera
nominees on the GOLD card in order to protect the value of their investment.

“We are gratified that Starboard has finally admitted in today’s letter that
Unwired Planet (“UPIP”), whose board is led by Starboard nominee Peter Feld,
is a direct competitor of Tessera’s,” said Richard  S. Hill, interim CEO and
executive chairman of Tessera. “Tessera’s Board strongly believes that this
conflict of interest disqualifies Mr. Feld as a potential director of the
Company. Mr. Feld is clearly grasping at straws with his endless misguided
rhetoric on matters that have been addressed already and frankly don’t merit
further comment. However, Starboard’s letter does make clear that – should it
take control of the Tessera Board – Starboard intends to convert Tessera into
a ‘patent troll’ in the model of UPIP. Mr. Feld’s abysmal track record as
Chairman of UPIP should cause grave concern among Tessera’s stockholders about
this strategy. Since Mr. Feld became chairman of UPIP, its revenues have
plummeted to almost nothing, and the stock has significantly underperformed
both its peer group and the broader market. We strongly believe that
converting Tessera to the UPIP business model – as Starboard’s letter has made
clear its intention – would destroy value for Tessera stockholders.

“In stark contrast, your Board and management remain steadfastly focused on
executing on our strategic plan to generate greater value for all
stockholders,” continued Mr. Hill. “Our strategy of innovation and partnership
brings tangible value to our customers. In addition, we have reconstituted the
Board to include the right mix of independent and highly experienced directors
to oversee the continued execution of our strategy for sustainable growth and
profitability.”

Safe Harbor Statement

This press release contains forward-looking statements, which are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements involve risks and uncertainties
that could cause actual results to differ significantly from those projected,
particularly with respect to the Company’s strategic plans, market
opportunities, financial targets and projections, value creation and
stockholder returns. Material factors that may cause results to differ from
the statements made include the plans or operations relating to the Company’s
businesses; market or industry conditions; changes in patent laws, regulation
or enforcement, or other factors that might affect the Company’s ability to
protect or realize the value of its intellectual property; the expiration of
license agreements and the cessation of related royalty income; the failure,
inability or refusal of licensees to pay royalties; initiation, delays,
setbacks or losses relating to the Company’s intellectual property or
intellectual property litigations, or invalidation or limitation of key
patents; the timing and results, which are not predictable and may vary in any
individual proceeding, of any ICC ruling or award, including in the Amkor
arbitration; fluctuations in operating results due to the timing of new
license agreements and royalties, or due to legal costs; the risk of a decline
in demand for semiconductor and camera module products; failure by the
industry to use technologies covered by the Company’s patents; the expiration
of the Company’s patents; the Company’s ability to successfully complete and
integrate acquisitions of businesses; the risk of loss of, or decreases in
production orders from, customers of acquired businesses; financial and
regulatory risks associated with the international nature of the Company’s
businesses; failure of the Company’s products to achieve technological
feasibility or profitability; failure to successfully commercialize the
Company’s products; changes in demand for the products of the Company’s
customers; limited opportunities to license technologies and sell products due
to high concentration in the markets for semiconductors and related products
and camera modules; the impact of competing technologies on the demand for the
Company’s technologies and products; and the reliance on a limited number of
suppliers for the components used in the manufacture of DOC products. You are
cautioned not to place undue reliance on the forward-looking statements, which
speak only as of the date of this release. The Company’s filings with the
Securities and Exchange Commission, including its Annual Report on Form 10-K
for the year ended Dec. 31, 2012, include more information about factors that
could affect the Company’s financial results. The Company assumes no
obligation to update information contained in this press release. Although
this release may remain available on the Company’s website or elsewhere, its
continued availability does not indicate that the Company is reaffirming or
confirming any of the information contained herein.

About Tessera Technologies

Tessera Technologies, Inc. is a holding company with operating subsidiaries in
two segments: Intellectual Property and DigitalOptics. Our Intellectual
Property segment, managed by Tessera Intellectual Property Corp., generates
revenue from manufacturers and other implementers that use our technology. Our
DigitalOptics business delivers innovation in imaging systems for smartphones.
For more information call 1.408.321.6000 or visit www.tessera.com.

Tessera, the Tessera logo, DOC, the DOC logo, and Invensas Corporation are
trademarks or registered trademarks of affiliated companies of Tessera
Technologies, Inc. in the United States and other countries. All other
company, brand and product names may be trademarks or registered trademarks of
their respective companies.

TSRA-G

Contact:

Tessera Technologies, Inc.
Rick Neely, 408-321-6756
Chief Financial Officer
or
The Abernathy MacGregor Group
Chuck Burgess, 212-371-5999
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