Tessera Licenses OptiML Focus Technology to AzureWave

Tessera Technologies, Inc. (Nasdaq:TSRA) today announced that AzureWave Technologies Inc. has licensed Tessera’s OptiML™ Focus image enhancement solution, which provides automatic focus capabilities in camera-enabled devices to deliver high-quality images with no moving parts. AzureWave, based in Taiwan, will integrate the innovative technology into its next-generation camera modules for laptop computers, webcams, cell phones and other camera-enabled devices.

"AzureWave has experienced strong growth and momentum during the last two years, and it is crucial that we use leading-edge technologies to establish and maintain our competitive advantage,” said Forster Shih, vice president, Operations, AzureWave. "Our relationship with Tessera will energize AzureWave’s march toward more advanced products and growth in the marketplace, and we expect OptiML Focus technology to help us achieve lower profile webcams for portable computers without sacrificing optical performance.”

Tessera’s OptiML Focus image enhancement solution enables all objects in an image to be in focus simultaneously, for the entire depth of field, with no mechanical parts. This provides an alternative to current autofocus solutions that require moving parts which are larger, slower, more expensive and less reliable. The technology, which provides improved image quality when compared to current fixed focus solutions, also enables barcode and full document capture for low-cost, fixed lens camera based solutions.

"We are excited to have AzureWave integrate our imaging and optics technology into camera-enabled, next-generation electronic devices,” said Mike Bereziuk, executive vice president, Imaging & Optics, Tessera. "AzureWave’s expertise in providing camera module solutions to the laptop computer and mobile device markets, coupled with Tessera’s OptiML Focus image enhancement solution, will help provide AzureWave’s customers with an advanced extended depth of field (EDOF) camera technology.”

Tessera recorded an initial fee from AzureWave under this license agreement in the fourth quarter of 2009. Because the OptiML Focus technology is ‘design-in’ intellectual property, the timing between signing an OptiML focus technology license agreement and Tessera’s receipt of initial royalty payments under the agreement is approximately 12-15 months.

OptiML Focus technology is available for licensing from Tessera now.

About OptiML Image Enhancement Technologies

The OptiML family of image enhancement technologies from Tessera enables significantly higher quality images in camera phones without the need for mechanical parts, providing a cost-effective alternative to current solutions which require moving parts and are larger, slower and less reliable. The OptiML Zoom solution offers 3X zoom capabilities, and the OptiML Focus solution enables all aspects of a high-quality image to be brought into focus automatically and simultaneously. The OptiML UFL solution improves low-light performance by increasing the amount of available light by as much as 250 percent, without degrading the field depth or other performance factors.

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 duration of Tessera’s relationship with AzureWave, AzureWave’s use of Tessera’s OptiML Focus enhancement solution, the functionality and performance of Tessera’s OptiML Focus enhancement solution, and the impact of Tessera’s OptiML Focus enhancement solution on AzureWave’s business. 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 Dec. 31, 2009, include more information about factors that could affect the company's financial results. Tessera assumes no obligation to update information contained in this press release. Although this release may remain available on Tessera's website or elsewhere, its continued availability does not indicate that Tessera is reaffirming or confirming any of the information contained herein.

About Tessera

Tessera Technologies, Inc. invests in, licenses and delivers innovative miniaturization technologies for next-generation electronic devices. The company’s micro-electronics solutions enable smaller, higher-functionality devices through chip-scale, 3D and wafer-level packaging technology, as well as high-density substrate and silent air cooling technology. Tessera’s imaging and optics solutions provide low-cost, high-quality camera functionality in electronic products and include image sensor packaging, wafer-level optics and image enhancement intellectual property. The company also offers customized micro-optic lenses, from diffractive and refractive optical elements to integrated micro-optical subassemblies. Tessera licenses its technologies, as well as delivers products based on these technologies, to promote the development of the supply chain infrastructure. The company is headquartered in San Jose, California. For information call 1.408.321.6000 or go to www.tessera.com.

Tessera, the Tessera logo and OptiML are trademarks or registered trademarks of Tessera, Inc. or its affiliated companies in the United States and other countries. All other company, brand and product names may be trademarks or registered trademarks of their respective companies.

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