Revenue Highlights: First Quarter 2009:

Micro-electronics Royalty and License Fees revenue was $106.6 million, and incorporated $60.6 million of the $64.1 million payment from Amkor received in February, 2009; and

Imaging & Optics Royalty and License Fees revenue was $5.3 million.

Generally accepted accounting principles (GAAP) net income for the first quarter of 2009 incorporated non-cash charges of $6.3 million for stock-based compensation, $2.9 million for amortization of acquired intangibles and impairment charges of $1.6 million related to certain investments of the company.

Non-GAAP net income for the first quarter of 2009 was $48.0 million or $0.98 per diluted share. Non-GAAP net income is defined as income and operating expenses adjusted for acquired intangibles amortization, charges for acquired in-process research and development, stock-based compensation expense, and related tax effects. Non-GAAP net income per share equals non-GAAP net income divided by the non-GAAP weighted diluted share count as of that period end.

Our first quarter 2009 total revenues met expectations, despite nonpayment from one of our major customers, Qimonda. As a reminder, we recognize revenue one quarter in arrears and, therefore, our first quarter 2009 total revenues reflect the weak fourth quarter of 2008 experienced by many of our customers, stated Henry R. Hank Nothhaft, president and chief executive officer, Tessera. Operationally, we managed expenses tightly during the quarter, especially with regard to litigation, which was significantly below last quarter. As a result, we had strong earnings and generated $80.0 million in free cash flow. The long-term growth prospects for our Micro-electronics and Imaging & Optics businesses remain on track, as we continue to develop and deliver miniaturization technologies that transform wireless, computing and consumer electronic products.

We ended the first quarter 2009 with $383.8 million in cash, cash equivalents and investments, said Michael Anthofer, chief financial officer, Tessera. Looking to the second quarter of 2009, our total revenues will reflect our customers’ first quarter, which for most was significantly down year-over-year. We anticipate continuing to manage expenses prudently, while devoting appropriate resources for the continued long-term growth of our company.

Financial Guidance for Second Quarter 2009:

Second quarter 2009 total revenues are anticipated to range between $46.0 million and $49.0 million. This compares to second quarter 2008 total revenues of $56.3 million.

Second quarter 2009 Micro-electronics revenue is anticipated to range between $40.0 million and $42.0 million, all of which will be royalty and license related. Revenue will reflect the weaker first quarter financial performance of the majority of the company’s DRAM and Wireless licensees, which reflects the macro economic conditions in the served markets of Tessera’s customers. As a reminder, Tessera recognizes revenue one quarter in arrears.

As a comparison, in the second quarter of 2008, Micro-electronics royalty and license fees revenue was $48.5 million and products and services revenue was $800,000, for a total of $49.3 million for this segment.

Second quarter 2009 Imaging & Optics revenue, in total, is expected to range between $6.0 million and $7.0 million. Imaging & Optics royalty and license fees revenue will range between $3.0 million and $4.0 million. Imaging & Optics products and services revenue will be about $3.0 million. This compares to Imaging & Optics royalty and license fees revenue of $1.4 million and products and services revenue of $5.6 million in the second quarter of 2008, which totaled $7.0 million for this segment. The products and services revenue is down year-over-year primarily due to lower demand from the company’s lithography customers.

Non-GAAP operating expenses for the second quarter of 2009 are projected to range between $31.0 million and $32.0 million, excluding litigation expenses.