SAN JOSE, Calif.--(BUSINESS WIRE)--July 10, 2006--Tessera Technologies, Inc. (Nasdaq:TSRA), a leading provider of miniaturization technologies for the electronics industry, today unveiled SHELLCASE(R) CF, a wafer-level technology for optical components integrated into electronic products such as miniaturized cameras in camera phones, digital still cameras and video camcorders.

Suitable for image sensors, certain types of MEMS and other optical devices, Shellcase CF protects these components from contamination from the initial stage of processing and is fully compatible with conventional Chip-on-Board (COB) assembly processes. An immediate targeted application of the technology is for CMOS and CCD image sensors used in camera phones. For these applications, Shellcase CF is engineered to provide up to a 40 percent improvement in yield over existing COB technology. This yield improvement is realized through the protection of the sensor's active area from contamination and the ability to perform wafer-level image testing prior to module assembly, both of which significantly improve camera module yield and dramatically reduce overall cost.

Shellcase CF utilizes existing wire-bond assembly infrastructure and processes, minimizing the hurdles to rapid adoption. With a combination of high yield and low cost, the new wafer-level technology platform delivers an extremely attractive solution that enables the industry to cost-effectively meet the increasing demand for image sensors in camera phones and other portable electronics.

Market research firm Techno Systems Research (TSR) forecasts that the market for image sensors within camera phones is expected to experience significant growth, increasing from approximately 413 million units in 2005 to 940 million units in 2009, representing a 23 percent compound annual growth rate (CAGR).

According to market research firm Prismark Partners, in 2005, approximately 50 percent of image sensors were assembled using COB technology. However, the trend toward higher quality pictures in consumer electronics is presenting the industry with significant yield challenges. To address these issues, many COB users will need to make substantial investments in cleanroom infrastructure upgrades. Shellcase CF provides a low-cost alternative that readily achieves high yield and facilitates rapid adoption by utilizing existing facilities.

"Shellcase CF technology is based on Tessera's mature and widely adopted Shellcase technology family," said Tom Pumo, senior consultant, Prismark Partners. "Shellcase CF represents a clever approach to solving image sensor yield issues that will become further exacerbated as image resolution increases; as a result, this platform is well positioned to meet the industry's emerging requirements."

Mike Bereziuk, Tessera's executive vice president, product division, stated, "Shellcase CF illustrates our commitment to developing new technologies that can help our customers and the industry succeed. This new wafer-level platform cost-effectively delivers high yields, independent of image sensor resolution or pixel size, a key benefit for camera module manufacturers and others. We look forward to working with our customer base as we introduce this next-generation technology to the marketplace."

SHELLCASE CF Technology Overview

Shellcase CF is the newest addition to Tessera's Shellcase wafer-level technology family and shares some similarities with COB construction. However, unlike COB technology, Shellcase CF encapsulates the image sensor, MEMS or other optical device with a glass cover that is elevated from the silicon surface using cavity walls. The cover design leaves the image sensor bond pads exposed allowing for standard wire-bond assembly. The protected die is then singulated and mounted to the board using standard die attach processes. Shellcase CF also provides manufacturers the flexibility to perform optical testing at the most favorable point of the assembly flow, as defined by their specific requirements and manufacturing environment. This flexibility helps to ensure high module assembly yields.

Tessera is currently licensing this technology to interested parties. In addition, Tessera is offering services, such as technology transfer and training. Prototype samples for evaluation are available.

Shellcase CF is being showcased today, Monday, July 10, at Tessera's annual U.S. Technology Symposium, at the Argent Hotel in San Francisco, as well as at SEMICON West, Tuesday -- Thursday, July 11 -- July 13, at the Moscone Center, West Hall, booth #8622 in San Francisco. For additional information, see Tessera's online media kit at www.tessera.com or contact Tessera directly at 1-408-894-0700.

About Tessera Technologies, Inc.

Tessera Technologies is a leading provider of miniaturization technologies for the electronics industry. Tessera enables new levels of miniaturization and performance by applying its unique expertise in the electrical, thermal and mechanical properties of materials and interconnect. As a result, Tessera's technologies are widely adopted in high-growth markets including consumer, computing, communications, medical and defense. Tessera's customers include the world's top semiconductor companies such as Intel, Samsung, Renesas, Toshiba and Texas Instruments. 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. Factors that might cause or contribute to such differences include, but are not limited to, fluctuations in Tessera's operating results due to the timing of new license agreements and royalties, Tessera's ability to protect its intellectual property and the risk of a decline in demand for semiconductor products. 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, 2005, and its Quarterly Report on Form 10-Q filed for the quarter ended March 31, 2006 include more information about factors that could affect the company's financial results.

Note: Tessera, Shellcase and the Tessera logo are registered trademarks of Tessera, Inc. All other company, brand and product names may be trademarks or registered trademarks of their respective companies.

CONTACT: Tessera
Daryl Larsen, 408-952-4364
dlarsen@tessera.com
or
Porter Novelli
Mark Plungy, 408-369-4600 ext. 675
mark.plungy@porternovelli.com
SOURCE: Tessera Technologies, Inc.