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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: jim kelley who wrote (39004)	3/28/2000 10:17:00 PM
From: Jdaasoc	Read Replies (2) \| Respond to of 93625

There must be long line at ITC office. Maybe the recent RMBS investment in Tessera was to help pay for all the legal bills. john electronicnews.com Tessera files patent infringement claim against Sharp, TI Mar 28, 2000 --- Tessera Inc., a supplier of chip-scale packaging (CSP) technology, today filed a patent infringement lawsuit with the U.S. International Trade Commission (ITC) and the Federal District Court against Texas Instruments Inc. and Sharp Electronics. The claim alleges that in 1999 TI breached a licensing agreement it had with Tessera from 1996. Tessera alleges TI is shipping digital signal processors in a MicroStar BGA package that incorporates Tessera?s intellectual property (IP). However, TI is not paying royalties to Tessera for using the IP, the company claims. The patents in question are U.S. Patent 5,679,977 and 5,852,326. ?Tessera pioneered and patented the concept of allowing the elements of chip-scale package to move relative to one another, enabling small package dimensions with high reliability,? said Chris Pickett, Tessera?s vice president and general counsel. ?This concept forms the foundation for Tessera?s CSP technology and is the central issue of this action.? After 10 months of unsuccessful attempts to resolve the dispute, Tessera said, the license held by TI from 1996 was terminated and Tessera filed the lawsuit. ?Tessera expects to be fairly compensated for the use of its IP, which adds only a few pennies to the cost of a packaged chip. Tessera has an obligation to its shareholders and licensees to strongly defend this IP when necessary,? Pickett said. Tessera has also filed a suit against Sharp, who allegedly is shipping flash memory chips incorporating Terrera?s CSP IP, which Sharp does not have a license for. Tessera is seeking an injunction from the ITC against the import of infringing packaged chips and the OEM products that incorporate them. The Federal District Court action against TI is seeking the same.

To: jim kelley who wrote (39004)	3/28/2000 11:51:00 PM
From: dpk	Read Replies (3) \| Respond to of 93625

2003 RMBS earnings/sh from DRAMs= 2003DRAMmarketrmbsmarketsharermbsroyaltyrateoperatingmargin(1-taxrate)/sharesoutstanding =$60billion0.50.0150.85(1-0.35)/23.8million =$10.45/share Other chip-to-chip applications (eg communications wins)will only increase this number. At P/E of 50 (INTC and MU now have P/Es greater than that), justifies a price of $520/share in 2003 based on DRAM alone. If other applications amount to an additional 50% contribution (management has implied a lot more in their public statements) the price in 2003 could be $780+/share. Discounting it at 15%/yr for three years justifies a price today of over $500/share. Hope this helps. dpk