Tessera Files Legal Proceedings Against Broadcom For Patent Infringement

Tessera Technologies, Inc. (the “Company” or “Tessera”) (Nasdaq: TSRA) announced today that it and certain of its subsidiaries filed legal proceedings for patent infringement in both domestic and international jurisdictions against Broadcom and, in some cases, against certain of Broadcom’s customers and distributors.

The proceedings are in the United States International Trade Commission, the U.S. District Court for the District of Delaware, and courts in Germany and the Netherlands, alleging infringement of a total of eight patents.

Tessera first reached out to Broadcom several years ago to explore technical collaboration on semiconductor technology development, and subsequently to discuss licensing Tessera’s intellectual property. Following a series of in-depth licensing discussions, the parties were unable to reach a licensing arrangement.

“Today’s actions were not taken lightly and are made only after years of effort to reach a fair and equitable resolution without litigation,” said Tom Lacey, CEO of Tessera. “At this point, we believe that litigation is necessary to defend our intellectual property rights. As we have said in connection with other legal matters, we remain willing to negotiate a resolution that fairly compensates Tessera and its shareholders for our valuable intellectual property. However, we are also fully prepared to proceed through the entirety of the legal process, and we remain very confident in our ability to achieve a positive outcome.”

Broadcom is not an existing Tessera customer, and as such the proceedings announced today do not impact Tessera’s second quarter revenue or earnings per share guidance or 2016 full-year revenue guidance. The Company expects 2016 litigation expense will remain within its current target operating model based on anticipated case activity for the remainder of the year.

Tessera researches and develops semiconductor and imaging technology that is used in billions of electronic devices. Tessera has a broad portfolio of over 4,000 patent assets protecting its technologies that it licenses to its customers. The Company is a leader in the fields of computational imaging and photography, as well as semiconductor packaging and interconnects. Additional information regarding this announcement can be found at http://ir.tessera.com. For more information about Tessera, please visit http://www.tessera.com/.

Conference Call Information

The Company will hold a conference call regarding this announcement at 2:30 PM Pacific (5:30 PM Eastern) on Monday, May 23, 2016. To access the call in the U.S., please dial (888) 723-9308, and for international callers dial (615) 489-8916, approximately 10 minutes prior to the start of the conference call. The conference ID is 18278488. The conference call will also be broadcast live over the Internet at www.tessera.com and available for replay for 30 days at www.tessera.com. In addition, a replay of the call will be available via telephone for thirty days, beginning six 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 18278488.

About Tessera Technologies, Inc.

Tessera Technologies, Inc., including its Invensas and FotoNation subsidiaries, licenses technologies and intellectual property to customers for use in areas such as mobile computing and communications, memory and data storage, and 3D-IC technologies, among others. Our technologies include semiconductor packaging and interconnect solutions, and products and solutions for mobile and computational imaging. For more information, call +1.408.321.6000 or visit www.tessera.com

Tessera and the Tessera logo, 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.

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 proceedings against Broadcom and its affiliates, customers, and distributors, and the Company’s financial guidance and projected litigation expense for 2016. Material factors that may cause results to differ from the statements made include the plans or operations relating to the businesses of the Company; 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; 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 semiconductors and products utilizing FotoNation 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 due to high concentration in the markets for semiconductors and related products and smartphone imaging; and the impact of competing technologies on the demand for the Company's technologies. 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, 2015, and its Quarterly Report on Form 10-Q for the quarter ended Mar. 31, 2016, 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.

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