Exhibit 99.1

TESSERA TECHNOLOGIES ANNOUNCES THIRD QUARTER 2010 RESULTS

San Jose, Calif., Oct. 28, 2010 – Tessera Technologies, Inc. (Nasdaq: TSRA) announced its results for the third quarter ended Sept. 30, 2010.

Third quarter 2010 total revenues of $82.1 million were up 24% compared to the third quarter of 2009. The company’s two business segments, Micro-electronics and Imaging & Optics, were up 22% and 42% respectively in the third quarter of 2010 as compared to the third quarter of 2009.

Revenue Highlights: Third Quarter 2010

Third quarter 2010 Micro-electronics revenues were $72.0 million, compared to third quarter 2009 Micro-electronics revenues of $59.1 million, and were comprised entirely of royalties and licenses. Third quarter 2010 Imaging & Optics revenues were $10.1 million, comprised of $4.0 million in royalties and license fees, and $6.1 million in products and services. This compared to third quarter 2009 Imaging & Optics revenues of $3.7 million in royalties and license fees, and $3.3 million in products and services, for a total of $7.0 million.

Generally accepted accounting principles (GAAP) net income for the third quarter of 2010 was $19.0 million, or $0.38 per diluted share, which included non-cash charges of $6.9 million for stock-based compensation and $3.6 million for amortization of acquired intangibles.

Non-GAAP net income for the third quarter of 2010 was $27.0 million or $0.52 per diluted share. Non-GAAP net income is defined as income and operating expenses adjusted for acquired intangibles amortization, charges for acquired in-process research and development, stock-based compensation expense, impairment charges on long-lived assets, and related tax effects.

“We had record recurring revenue in the third quarter of 2010,” said Henry R. Nothhaft, Tessera’s chairman and chief executive officer. “Cash, cash equivalents, and investments increased $36.2 million in the quarter, resulting in $474.0 million at the end of the third quarter of 2010. Excluding settlements, we believe our full year 2010 total revenue will be up between 18% and 19% over full year 2009 total revenue, due to the expected growth in our primary served markets of DRAM and mobile wireless devices.

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“We have decided to discontinue further development of our Wafer-Level Optics for camera modules due to the diminished revenue opportunity for this technology under a license and royalty business model. Pursuant to our long-term vision of more product opportunities in our Imaging & Optics business segment, we intend to repurpose resources formally dedicated to Wafer-Level Optics to high-value, product-based opportunities such as Consumer Micro-Optics,” concluded Nothhaft.

Revenue Highlights: Nine-month Period Ended Sept. 30, 2010

GAAP net income for the nine-month period was $44.0 million, or $0.87 per diluted share. Non-GAAP net income for the nine-month period was $68.1 million, or $1.33 per diluted share.

Fourth Quarter 2010 Financial Guidance

Fourth quarter 2010 total revenues are expected to range between $76 million and $79 million, which represents an increase of approximately 35% to 40% over fourth quarter 2009 total revenues of $56.5 million.

Fourth quarter 2010 Micro-electronics revenues are expected to range between $65 million and $68 million, all of which will be royalties. This guidance includes $6 million Tessera expects to receive from UTAC as a result of the settlement, in the first quarter of 2010, of the breach of contract litigation Tessera filed against UTAC. As a comparison, the fourth quarter of 2009 Micro-electronics royalty and license fees revenues were $48.5 million.

Fourth quarter 2010 Imaging & Optics revenues, in total, are expected to be approximately $11 million. Fourth quarter 2010 Imaging & Optics royalty and license fees revenues are expected to be approximately $5 million. Imaging & Optics products and services revenues are expected to be approximately $6 million. This compares to Imaging & Optics royalty and license fees revenues of $3.3 million and products and services revenues of $4.7 million in the fourth quarter of 2009, which totaled $8.0 million for this segment.

Non-GAAP operating expenses for the fourth quarter of 2010 are projected to range between $36 million and $37 million, excluding litigation expenses.

In connection with the cessation of the development of Wafer-Level Optics, in the fourth quarter of 2010 Tessera will recognize a charge of between $3 million and $4 million to write off the net carrying value of certain long-lived fixed assets.

Prepared Remarks and Conference Call Information

Concurrent with the publication of its earnings press release, Tessera will post to its website, www.tessera.com, management’s prepared remarks regarding Tessera’s quarterly performance. These prepared remarks are being made available in order to provide the investment community with additional time to analyze Tessera’s results prior to the conference call. The third quarter 2010 earnings conference call will include brief remarks from management, followed by a Q&A session.

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Tessera will hold its third quarter 2010 earnings conference call at 2:00 P.M. Pacific (5:00 P.M. Eastern) today. To access the call in the U.S., please dial 866-531-1286, and for international callers dial 706-643-3789 approximately 10 minutes prior to the start of the conference call. The conference call will also be broadcast live over the Internet and available for replay for 90 days at www.tessera.com. In addition, a replay of the call will be available via telephone for two business days, beginning two hours after the call. To listen to the telephone replay in the U.S., please dial 800-642-1687 and for international callers, dial 706-645-9291. Enter access code 16336767.

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, particularly with respect to the company’s financial results whether for the full year 2010 or otherwise, revenue opportunities for Wafer-Level Optics, and product opportunities for our Imaging & Optics business segment, as well as future investment and development resources, the expansion of the company’s intellectual property portfolios, the growth of the company’s served markets, the use of the company’s technology in additional applications, the size of market opportunities, industry trends, and the company’s IP protection efforts, including litigation. 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, 2009 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2010, include more information about factors that could affect the company’s financial results. Tessera assumes no obligation to update information contained in this press release. Although this release may remain available on Tessera’s website or elsewhere, its continued availability does not indicate that Tessera is reaffirming or confirming any of the information contained herein.

About Tessera

Tessera Technologies, Inc. invests in, licenses and delivers innovative miniaturization technologies for next-generation electronic devices. The company’s micro-electronics solutions enable smaller, higher-functionality devices through chip-scale, 3D and wafer-level packaging technology, as well as high-density substrate and

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silent air cooling technology. Tessera’s imaging and optics solutions provide low-cost, high-quality camera functionality in electronic products and include image sensor packaging, wafer-level optics and image enhancement technologies. The company also offers customized micro-optic lenses, from diffractive and refractive optical elements to integrated micro-optical subassemblies. Tessera licenses its technologies, as well as delivers products based on these technologies, to promote the development of the supply chain infrastructure. The company is headquartered in San Jose, California. For information call 1.408.321.6000 or go to www.tessera.com.

Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (GAAP), the company’s earnings release contains non-GAAP financial measures adjusted for either one-time or ongoing non-cash acquired intangibles amortization charges, acquired in-process research and development, all forms of stock-based compensation, impairment charges on long-lived assets, and related tax effects. The non-GAAP financial measures also exclude the effects of FASB Accounting Standards Codification Topic 718 – Stock Compensation upon the number of diluted shares used in calculating non-GAAP earnings per share. Management believes that the non-GAAP measures used in this report provide investors with important perspectives into the company’s ongoing business performance. The non-GAAP financial measures disclosed by the company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated. The non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

Set forth below are reconciliations of non-GAAP net income to Tessera’s reported GAAP net income.

Tessera and the Tessera logo are trademarks or registered trademarks of Tessera, Inc. or its affiliated companies in the United States and other countries. All other company, brand and product names may be trademarks or registered trademarks of their respective companies.

-Tables follow-

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TESSERA TECHNOLOGIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

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TESSERA TECHNOLOGIES, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)

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TESSERA TECHNOLOGIES, INC.

RECONCILIATION TO NON-GAAP INCOME FROM GAAP NET INCOME

(in thousands, except per share amounts)

(unaudited)

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TESSERA TECHNOLOGIES, INC.

CONSOLIDATED REVENUE DETAILS

(in thousands)

(unaudited)

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