Flextronics Licenses New Wafer-Level Assembly Technology For Image Sensors

SAN JOSE, Calif.—(BUSINESS WIRE)—Sept. 6, 2006— Tessera Technologies, Inc. (Nasdaq: TSRA), a leading provider of miniaturization technologies for the electronics industry, today announced it has signed a new wafer-level assembly technology licensing agreement with Flextronics International Ltd. (Nasdaq:FLEX), a leading electronics manufacturing services (EMS) provider and the world's largest manufacturer of camera modules. Under the terms of the agreement, Flextronics has access to Tessera's SHELLCASE(R) CF technology for use across the company's entire camera module line. Introduced in July 2006, Shellcase CF is a wafer-level technology that utilizes the manufacturing infrastructure of conventional Chip-on-Board (COB) assembly processes, while resolving the challenges associated with increasing resolution and decreasing pixel size in image sensors. This wafer-level assembly technology is used to assemble optical components integrated into electronic products such as miniaturized cameras in camera phones, digital still cameras and video camcorders.

"Tessera's leadership in miniaturization technologies provides an excellent match for Flextronics' unparalleled consumer product manufacturing capabilities, as both companies look to drive the image sensor market forward," said Bruce McWilliams, Tessera's chairman and CEO. "Given Flextronics' position as the world's leading manufacturer of camera modules and its exceptional expertise in the areas of camera module design and manufacturing, we are excited they have selected Tessera's new wafer-level assembly technology. We are confident our innovative Shellcase CF technology will help Flextronics maintain its market leadership while providing the cost, yield and miniaturization advantages needed to achieve substantial manufacturing efficiency."

"With the adoption of Shellcase CF, Flextronics provides a major boost for Tessera and the widespread adoption of its latest assembly technology," said Tom Hausken, Director, Optical Components, Strategies Unlimited. "The market for image sensors used in mobile phones is growing rapidly, and the industry needs to address the yield issues resulting from decreasing pixel sizes with increasing image sensor resolution. Tessera's Shellcase CF technology is a novel solution that helps to resolve these issues while providing an easy migration path for manufacturers who have traditionally used COB assembly technologies."

About SHELLCASE(R) CF Technology

The newest addition to Tessera's Shellcase wafer-level technology family, Shellcase CF is ideally suited for CMOS and CCD image sensors used in consumer electronics devices, such as camera phones and digital still cameras. Using a novel encapsulation process, Shellcase CF protects the image sensor's active area from contamination from the initial stage of processing and 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. Shellcase CF utilizes existing wire-bond assembly infrastructure and processes, minimizing the hurdles to rapid adoption. This helps to ensure high module assembly yields and significant reductions in overall cost.

About Tessera Technologies, Inc.

Tessera Technologies, through its wholly-owned subsidiaries Tessera, Inc., Tessera Israel, and Digital Optics Corporation, 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 interconnects, as well as in micro-optics structures. 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 Corporate Communications
Daryl Larsen, 408-952-4364

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or
Porter Novelli
Ricky Gradwohl, 408-369-4631

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