Tessera and Matsushita Sign Technology Licensing Agreement.

SAN JOSE, Calif. -- Agreement with World Leading Consumer Product Manufacturer Expands Tessera's Position in Wireless and Consumer Markets

Tessera Technologies, Inc. (Nasdaq:TSRA), a leading technology developer, licensor and product development services provider for semiconductor chip-scale and multi-chip packages (CSPs and MCPs), today announced that it has signed a new technology licensing agreement with Matsushita Electric Industrial Co., Ltd. (MEI) (NYSE:MC), one of the world's leading consumer products companies and semiconductor device manufacturers in the world. MEI, best known for its 'Panasonic' brand, utilizes Tessera's chip scale packaging (CSP) technology in many semiconductor devices, including application specific standard products (ASSPs), application specific integrated circuits (ASICs), and various logic devices. Tessera's chip scale packaging has allowed MEI to develop and market consumer products such as digital video cameras and cellular phone handsets with unprecedented feature sets in very small form factors.

"Tessera is pleased to announce its new licensing agreement with Matsushita Electric, a distinguished electronics innovator for nearly a century," said Kirk Flatow, Tessera's senior vice president, marketing and sales. "Panasonic is well known for high-quality leading-edge products. By leveraging Tessera's advanced packaging technologies, Panasonic has been able to deliver extremely small, reliable, and feature-rich consumer products to the market at low cost. We look forward to supporting Matsushita, and to continuing to provide advanced packaging technologies that enable market leading innovations in future Panasonic products."

The technology available to MEI covers a broad range of chip-scale and multi-chip package types, including integrated circuit devices packaged in "face-down," "face-up," "fold-over," "stacked," and "system-in-package" (SiP) formats, utilizing many different types of materials, including packages using either tape and laminate substrates. These package types are marketed by Tessera as MicroBGA(R) for face-down orientations, MicroBGA-F for face-up orientations, and MicroZ(TM) for multi-chip solutions. Tessera's intellectual property is utilized in many forms of advanced packaging, covering an extensive range of materials and assembly processes.

About Tessera, Inc.

Tessera develops semiconductor packaging technology that meets the demand for miniaturization and increased performance of electronic products. Tessera licenses its technology to its customers, enabling them to produce semiconductors that are smaller and faster, and incorporate more features. These semiconductors are utilized in a broad range of communications, computing and consumer electronic products.

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, 2003, include more information about factors that could affect the company's financial results.

Note: Tessera, MicroBGA, Compliant Chip and the Tessera logo are registered trademarks and MicroZ is a trademark of Tessera, Inc. All other company, brand and product names may be trademarks or registered trademarks of their respective companies.