Tessera Unveils World's First Wafer-Level Camera Technology for Mobile Phones

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.