OptiML™ Wafer Level Camera (WLC) Technology Applies Microelectronics Techniques to Optics and is Designed to Enable Up to 30% Percent Cost Savings Long Term

SAN JOSE, Calif.--(BUSINESS WIRE)--June 11, 2007--Tessera Technologies, Inc. (Nasdaq:TSRA), a leading provider of miniaturization technologies for the electronics industry, today announced OptiML(TM) WLC (also known as OptiuL(TM) WLC), a new wafer-level camera technology designed to significantly advance the integration of miniaturized cameras in mobile phones, personal computers, security cameras, and other electronics. Tessera's OptiML WLC technology makes it possible for cameras to be manufactured at the wafer level, drastically reducing the size and total bill of material cost of camera modules. As a result of these and other significant benefits, Tessera is providing the electronics industry a powerful tool for integrating cameras into a wider range of electronic products.

Tessera's solution is designed to overcome the cost, size and manufacturing roadblocks facing the industry as cameras become pervasive in mobile phones and other electronics. Using OptiML WLC technology, thousands of lenses are manufactured simultaneously on a wafer, and then bonded at the wafer level to create the optical element of the camera. The result is simplified assembly and up to 30% cost savings for the optical component of the camera module. OptiML WLC technology also reduces the size of the camera to a minimum, delivering up to 50% size reductions over conventional camera modules in camera phones today. Tessera's recently acquired Eyesquad technology can be easily integrated into the OptiML WLC solution, providing advanced auto-focus and digital optical zoom without the use of moving parts, resulting in greatly enhanced camera functionally and reliability at lower costs and smaller form factors.

According to Bruce McWilliams, Tessera's Chairman, President and CEO, "We believe utilizing a wafer-level camera manufacturing technology is the most viable path to overcoming the challenges facing the industry today. With our acquisitions of Shellcase, Digital Optics and Eyesquad, we have assembled what we believe to be the strongest portfolio of camera optic technologies in the marketplace. For nearly two decades, Tessera has pioneered technologies that have resulted in smaller, better performing electronic products. We are continuing in that tradition with today's announcement, and we believe our OptiML wafer level camera technology represents a significant leap forward in the development of highly integrated, lower cost optics for consumer and other electronics."

The market for cameras in electronic products such as cellular phones, laptops, PDAs, and security electronics continues to show strong growth. The mobile phone camera market alone is estimated to grow from 660 million units in 2006 to over 1.1 billion units in 2011, according to Gartner Dataquest. Said Jim Walker, Vice President of Research, Semiconductor Manufacturing, Gartner Dataquest, "The world's most influential cell phone makers have challenged the industry for a wafer level camera solution. There are many key benefits realized when applying semiconductor processes to optics, including significant cost and size reductions. The challenge the industry faces is to integrate greater levels of functionality in smaller form factors at acceptable levels of cost. This new wafer-level approach to miniaturization provides an innovative solution for meeting these objectives."

About OptiML Wafer Level Camera Technology
OptiML WLC technology can be used for a wide range of camera phone applications, and is designed to scale to multi-mega pixel resolutions. Wafer level techniques are used to build thousands of lenses on a wafer at the same time. Multiple lens wafers are then aligned and bonded at the wafer level using Tessera's OptiML(TM) WaferStack(TM) technology. The need for costly manual focusing is removed due to the accuracy of the WaferStack(TM) process. The bonded lens wafers are then diced into individual lens modules, and each lens module is mounted on top of a packaged image sensor.

Reflow compatible materials are used to build the lenses. The result is a camera module that can be mounted directly onto the phone board using the same reflow process used to assemble other electronics. Assembly through reflow results in lower labor cost, part count and cycle time when incorporating the camera into the phone.

For fixed focus applications, traditionally used for VGA to 2 mega pixel resolution camera phones, OptiML WLC eliminates the need for manual focus adjustment of the cameras' optical elements. For 2 mega pixel resolution and above, advanced auto focus and digital optical zoom can be integrated into the OptiML WLC solution using Eyesquad technology without the use of moving parts.

Using its OptiML WLC technology, Tessera has developed the world's first reflowable wafer level camera designed to meet the specifications of today's VGA camera phones. For additional details on the OptiML WLC platform, please go to Tessera's website: www.tessera.com and click on the online media kit.

Licensing
Tessera is offering OptiML WLC technology for license to the global electronics industry. Tessera is also offering related services, such as technology transfer, training and design services.

About Tessera Technologies, Inc.
Tessera is a leading provider of miniaturization technologies for the electronics industry. Tessera provides a broad range of advanced packaging, interconnect, and consumer optics solutions which are widely adopted in high-growth markets including consumer, computing, communications, medical and defense electronics. Tessera's customers include the world's top semiconductor companies such as Intel, Samsung, Texas Instruments, Toshiba, Micron and Infineon. The company's stock is traded on the Nasdaq National Market under the symbol TSRA. Tessera is headquartered in San Jose, California. www.tessera.com.

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. Material factors that may cause results to differ from the statements made include delays, setbacks or losses relating to our intellectual property or intellectual property litigations, or any invalidation or limitation of our key patents; fluctuations in our operating results due to the timing of new license agreements and royalties, or due to legal costs; changes in patent laws, regulation or enforcement, or other factors that might affect our ability to protect our intellectual property; the risk of a decline in demand for semiconductor products; failure by the industry to adopt our technologies; competing technologies; the future expiration of our patents; the future expiration of our license agreements and the cessation of related royalty income; the failure or refusal of licensees to pay royalties; failure to achieve the growth prospects and synergies expected from acquisition transactions; and delays and challenges associated with integrating acquired companies with our existing businesses. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this release. Tessera's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2006, and its Quarterly Report on Form 10-Q filed for the quarter ended March 31, 2007 include more information about factors that could affect the company's financial results.

Note: Tessera, the Tessera logo, and SHELLCASE are registered trademarks and OptiML(TM) and OptiuL(TM) are trademarks of Tessera. All other company, brand and product names may be trademarks or registered trademarks of their respective companies.