Starboard delivers letter to Tessera board

February 19, 2013

"We believe there is significant value to be realized at Tessera. However, we are concerned that management and the Board of Directors are not taking appropriate actions to address the perennial underperformance of the Company. In this letter, we have highlighted our thoughts and concerns about the Company's past underperformance and current strategy, as well as our views on steps that should be taken in order to unlock value for the benefit of all Tessera shareholders. Specifically, we believe Tessera must: Significantly reduce costs throughout the entire organization; Implement near-term performance hurdles for DigitalOptics Corporation and evaluate strategies to mitigate the mounting losses, including considering alternative structures or partnerships for this business; Reduce costs and focus on identifying and executing on incremental opportunities to drive additional revenue in the Intellectual Property business; and Return significant capital to shareholders."