CombiMatrix and INBIO Forming Marketing and Sales Arm In Europe.

NEWPORT BEACH, Calif. -- Acacia Research Corporation (Nasdaq:CBMX) (Nasdaq:ACTG) announced today that its CombiMatrix group is collaborating with INBIO on the formation of a marketing and sales arm for Europe for CombiMatrix CustomArray(TM) products. The entity, "CombiMatrix Europe GmbH," is based in Freiburg, Germany. CombiMatrix Europe GmbH will begin by serving specifically Germany, the United Kingdom, Switzerland, and Austria. The new entity is making its first appearance at the Analytica 2006 conference currently underway in Munich.

"CombiMatrix's goal is to aggressively expand its marketing and sales through partnerships and distribution deals," said Dr. Amit Kumar, President and CEO of CombiMatrix. "We already have distribution deals in place with INBIO and have been extremely pleased with their progress and expertise. CombiMatrix Europe expands this relationship to Europe, where CombiMatrix and INBIO see considerable opportunity and expansion."

"We are delighted to launch CombiMatrix Europe GmbH and anticipate a rapid uptake of CustomArray products within Europe. Importantly, our European customers will benefit significantly via the improved access to this unique microarray technology. The timing is perfect given recent and imminent advances in the capability of the CustomArray platform," said Mark Humble, CEO of INBIO.

ABOUT ACACIA RESEARCH CORPORATION

Acacia Research Corporation comprises two operating groups, Acacia Technologies group and CombiMatrix group.

The CombiMatrix group is developing a platform technology to rapidly produce customizable arrays, which are semiconductor-based tools for use in identifying and determining the roles of genes, gene mutations and proteins. The CombiMatrix's group's technology has a wide range of potential applications in the areas of genomics, proteomics, biosensors, drug discovery, drug development, diagnostics, combinatorial chemistry, material sciences and nanotechnology.

The Acacia Technologies group develops, acquires, and licenses patented technologies. Acacia controls 42 patent portfolios, which include over 160 U.S. patents, and certain foreign counterparts, covering technologies used in a wide variety of industries including audio/video enhancement & synchronization, broadcast data retrieval, computer memory cache coherency, credit card fraud protection, database management, data encryption & product activation, digital media transmission (DMT(R)), digital video production, dynamic manufacturing modeling, enhanced Internet navigation, hearing aid ECS, image resolution enhancement, interactive data sharing, interactive television, laptop docking station connectivity, microprocessor enhancement, multi-dimensional bar codes, network data storage, resource scheduling, rotational video imaging, spreadsheet automation, user activated Internet advertising and web conferencing & collaboration software.

Acacia Research-Acacia Technologies (Nasdaq:ACTG) and Acacia Research-CombiMatrix (Nasdaq:CBMX) are both classes of common stock issued by Acacia Research Corporation and are intended to reflect the performance of the respective operating groups and are not issued by the operating groups.

Information about the Acacia Technologies group and the CombiMatrix group is available at www.acaciaresearch.com.

ABOUT INBIO

INBIO is the Life Science arm of BioInsight Pty Ltd and provides comprehensive distribution coverage for the Australian and New Zealand Life Science market for its international partners. INBIO's international expansion into Asia and Europe is providing the basis for strategic collaborations well beyond its initial foundation.

With a highly experienced commercial team, our focus is on providing innovative solutions for gene expression analysis. INBIO has formed distribution alliances with a range of organizations to satisfy our customers' demand for such products in this growing market segment. For more information on INBIO, visit our website at http://www.inbio.com.au.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This news release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including the economic slowdown affecting technology companies, our ability to successfully develop products, rapid technological change in our markets, changes in demand for our future products, legislative, regulatory and competitive developments and general economic conditions. Our Annual Report on Form 10-K, recent and forthcoming Quarterly Reports on Form 10-Q, recent Current Reports on Forms 8-K and 8-K/A, and other SEC filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.