Tessera Technologies Will Cease All Remaining mems|cam Manufacturing Operations

  Tessera Technologies Will Cease All Remaining mems|cam Manufacturing
  Operations

 Concludes Strategic Review Process for DigitalOptics mems|cam Business; Will
    Refocus DOC Efforts on Monetizing DigitalOptics Technologies Including
                 Solutions for Imaging and MEMS Technologies

   Quarterly DOC Related GAAP Operating Expenses Expected to be Reduced by
                          Approximately $17 Million

      Management Will Conduct a Conference Call before Market Open Today

Business Wire

SAN JOSE, Calif. -- January 16, 2014

Tessera Technologies, Inc. (NASDAQ: TSRA) (the “Company” or “Tessera”)
announced today that it is restructuring its DigitalOptics business (“DOC”) to
cease its remaining manufacturing operations and refocus efforts on monetizing
DOC technologies, including solutions for imaging and MEMS technologies. The
changes announced today will enable the Company to return its focus to its
core IP business, will substantially reduce the Company’s operating costs, and
provide the Company with a path to improved financial performance and
profitability.

These actions are the culmination of an in-depth review of strategic
alternatives for DOC that was conducted in conjunction with the Company’s
financial advisors, the newly reconstituted board of directors and the new
senior management team. The Company expects to take restructuring, impairment
and other exit charges of approximately $50 million to $55 million, with
approximately 75% of that charge in the fourth quarter of 2013 and the
remainder in the first half of 2014. As a result of the restructuring, the
Company expects its quarterly DOC related operating expenses to be reduced by
approximately $17 million, realized in full by the third quarter of 2014.

Tom Lacey, Tessera’s chief executive officer, commented, “After an exhaustive
process of exploring multiple options, we have decided to cease DOC
manufacturing operations and focus our resources in DOC on continuing to
operate our image enhancement business, while also exploring new ways to
realize value from our extensive DOC intellectual property portfolio,
including a sale, licensing or other means. While the strategic process
ultimately did not lead to a sale of the mems|cam business, we achieved solid
proof of concept by demonstrating working mems|cam camera modules, including
shipping pre-production units that generated substantial customer interest. We
strongly believe that there is significant value in the related intellectual
property that has been developed, including our camera module, MEMS, and image
enhancement technologies. Additionally, we continue to believe our mems|cam
technology is unique and novel and may be incorporated into mobile devices in
the future. To that end, we intend to maintain a small team of MEMS engineers
to further the mems|cam technology and pursue possible avenues to unlock the
value of this powerful technology.”

Continued Lacey, “I wish to sincerely thank the many talented and passionate
employees who have contributed towards the development of the DOC’s mems|cam
technology and products. I look forward to continuing to drive our world-class
image enhancement business to further develop and commercialize our
market-leading imaging technology, intellectual property and products, many of
which have been employed by leading smartphone manufacturers around the world.
I remain optimistic about our future and the many opportunities ahead.”

Tessera will hold a conference call at 5:30 A.M. Pacific (8:30 A.M. Eastern)
today. To access the call in the U.S., please dial (888) 723-9308, and for
international callers dial (706) 643-3789, approximately 10 minutes prior to
the start of the conference call. The conference call will also be broadcast
live over the Internet and available for replay for 90 days at
www.tessera.com. In addition, a replay of the call will be available via
telephone for two business days, beginning two hours after the call. To listen
to the telephone replay in the U.S., please dial (855) 859-2056. International
callers please dial (404) 537-3406. Enter access code 35876836.

Safe Harbor Statement

This document 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 change in DOC business strategy; the
Company’s ability to monetize the DOC intellectual property portfolio and
technology, through a sale, licensing or other means; the Company’s intention
regarding DOC’s image enhancement business and mems|cam business, and the
Company’s efforts to monetize its imaging and/or MEMS technology; the
possibility that mems|cam technology will be incorporated into mobile devices
in the future; the expected charges and cash expenditures from the
restructuring; and the timing of the restructuring; the Company’s ability to
reduce its costs and the estimated amount of future reductions in operating
expense. Material factors that may cause results to differ from the statements
made include the plans or operations relating to the Company's businesses; any
need to spend more cash and/or incur greater charges than anticipated in
connection with the DOC restructuring, workforce reduction, facility closures
and related activities; any need to undertake further restructuring
activities; 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 products utilizing DOC technologies; 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; and the impact of competing technologies
on the demand for the Company's technologies and 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, and its Quarterly Report on Form 10-Q for the quarter
ended Sept. 30, 2013, 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, Inc.

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.
Robert Andersen, 408-321-6779
Executive Vice President and Chief Financial Officer
or
Moriah Shilton, 408-321-6713
Sr. Director, Communications and Investor Relations