Rambus Inc.
Feb 4, 2008

Rambus Reports Fourth Quarter and Year End Results

Revenue of $40.5 Million, Loss Per Share of $0.14 for the Fourth
Quarter and Revenue of $179.9 million, Loss Per Share of $0.27 for the
Year

LOS ALTOS, Calif., Feb 04, 2008 (BUSINESS WIRE) -- Rambus Inc. (NASDAQ:RMBS), one of the world's premier technology licensing companies specializing in high-speed memory architectures, today reported financial results for the fourth quarter and year ended 2007.

Revenues for the fourth quarter were $40.5 million, down 2.8% sequentially and down 22.9% over the fourth quarter of last year. Revenues for the year were $179.9 million, down 7.9% over the last year.

"We faced a number of extraordinary challenges in 2007, many of which had an impact on our revenue results," said Harold Hughes, president and chief executive officer at Rambus. "Nevertheless, we enter the new year with some good momentum as illustrated by our first HDTV win for the XDR memory architecture at Toshiba, as well as Qimonda's news that it is now shipping samples of XDR DRAM, expanding the supply base for the world's fastest memory."

Total costs and expenses for the fourth quarter of 2007 were $72.6 million, which included $16.4 million of stock-based compensation expenses, $0.8 million of restatement and related legal expenses and $3.0 million of severance expenses as compared to total costs and expenses of $58.2 million for the third quarter of 2007, which included $8.7 million of stock-based compensation expenses, $4.2 million of restatement and related legal expenses and $0.3 million of severance expenses. General litigation expenses for the quarter were $16.1 million, an increase of $4.4 million from the third quarter of 2007. Total costs and expenses for the fourth quarter of 2006 were $53.2 million, which included $9.7 million of stock-based compensation and $5.7 million of restatement and related legal expenses. General litigation expenses in the fourth quarter of 2006 were $5.2 million.

Total costs and expenses for fiscal year 2007 were $250.1 million, which included $44.8 million of stock-based compensation expenses, $19.5 million of restatement and related legal expenses, $6.7 million of IRS 409A related expenses and $3.3 million of severance expenses as compared to total costs and expenses of $235.4 million for fiscal year 2006, which included $40.5 million of stock-based compensation and $31.4 million of restatement and related legal expenses. General litigation expenses for the year were $39.5 million, an increase of $10.6 million from the previous year, excluding a bonus paid to a law firm in fiscal year 2006.

Net loss for the fourth quarter of 2007 was $14.6 million as compared to a net loss of $6.5 million in the previous quarter and a net income of $2.1 million in the fourth quarter of 2006. Net loss per share for the fourth quarter was $0.14 as compared to a net loss per share of $0.06 for the previous quarter and a net income per share of $0.02 for the fourth quarter of 2006.

Net loss for fiscal year 2007 was $27.7 million as compared to a net loss of $13.8 million in fiscal year 2006. Net loss per share for fiscal 2007 was $0.27 as compared to a net loss per share of $0.13 for fiscal year 2006.

Cash, cash equivalents and marketable securities as of December 31, 2007 were $440.9 million, down approximately $4.1 million from September 30, 2007 and up approximately $4.5 million from December 31, 2006.

The conference call discussing fourth quarter and year end results will be available live via the Rambus website (http://investor.rambus.com) at 2:00 p.m. Pacific Time today. The call will be webcast and can be accessed through the Rambus website. A replay will be available following the call on Rambus' Investor Relations website or for one week at the following numbers: (888) 203-1112 (domestic) or (719) 457-0820 (international) with ID# 7774674.

About Rambus Inc.

Rambus is one of the world's premier technology licensing companies specializing in the invention and design of high-speed memory architectures. Additional information is available at www.rambus.com.

                Condensed Consolidated Balance Sheets
                            (In thousands)
                             (Unaudited)
                                             December 31, December 31,
                                                  2007          2006
                                             -----------  ------------


ASSETS
--------

Current assets:
 Cash and cash equivalents                      $119,391      $ 73,304
 Marketable securities                           321,491       351,055
 Accounts receivable                                 442           846
 Unbilled receivables                              1,478         1,748
 Deferred and prepaid taxes                       12,584        11,388
 Prepaid expenses and other current assets         7,693         4,403
                                             -----------  ------------
        Total current assets                     463,079       442,744
                                             -----------  ------------

Restricted cash                                    2,286         2,287
Deferred taxes, long-term                        121,810        98,193
Intangible assets, net                            13,441        18,697
Property, plant and equipment, net                24,587        26,019
Goodwill                                           4,454         3,315
Other non-current assets                           3,624         1,380
Marketable securities, long-term                       -        11,982
                                             -----------  ------------
        Total assets                            $633,281      $604,617
                                             ===========  ============

LIABILITIES AND STOCKHOLDERS' EQUITY
-------------------------------------------

Current liabilities:
 Accounts payable                               $ 11,283      $ 10,429
 Accrued payroll and related benefits              9,985        12,788
 Accrued litigation expenses                      26,234        23,143
 Other accrued liabilities                         5,894         6,075
 Deferred revenue                                  2,756         6,003
 Convertible notes                                     -       160,000
                                             -----------  ------------
        Total current liabilities                 56,152       218,438
                                             -----------  ------------

Long-term liabilities:
 Convertible notes                               160,000             -
 Deferred revenue, less current portion                -         1,554
 Other long-term liabilities                       4,111         2,337
                                             -----------  ------------
        Total long-term liabilities              164,111         3,891
                                             -----------  ------------

Total stockholders' equity:                      413,018       382,288
                                             -----------  ------------
        Total liabilities and stockholders'
         equity                                 $633,281      $604,617
                                             ===========  ============

           Condensed Consolidated Statements of Operations
               (In thousands, except per share amounts)
                             (Unaudited)

                               Three Months Ended  Twelve Months Ended
                               ------------------- -------------------

                               December  December  December  December
                                31, 2007 31, 2006   31, 2007  31, 2006
                               ---------------------------------------

Revenue:
 Contract revenue              $  4,489  $  8,577  $ 25,634  $ 26,408
 Royalty revenue                 36,043    44,013   154,306   168,916
                               --------- --------- --------- ---------
    Total revenues               40,532    52,590   179,940   195,324

Costs and expenses:
 Cost of contract revenues (1)    8,246     7,382    27,124    30,392
 Research and development (1)    22,538    17,424    82,877    68,977
 Marketing, general and
  administrative (1)             40,940    22,692   120,597   104,561
 Costs of restatement and
  related legal activities          826     5,746    19,457    31,436
                               --------- --------- --------- ---------
    Total costs and expenses     72,550    53,244   250,055   235,366
                               --------- --------- --------- ---------


Operating loss                  (32,018)     (654)  (70,115)  (40,042)

Interest and other income, net    5,263     2,344    21,759    14,337
                               --------- --------- --------- ---------

Income (loss) before income
 taxes                          (26,755)    1,690   (48,356)  (25,705)

Benefit from income taxes        12,197       379    20,692    11,889
                               --------- --------- --------- ---------

Net income (loss)              $(14,558) $  2,069  $(27,664) $(13,816)
                               ========= ========= ========= =========

Net income (loss) per share:
 Basic                         $  (0.14) $   0.02  $  (0.27) $  (0.13)
 Diluted                       $  (0.14) $   0.02  $  (0.27) $  (0.13)

Weighted-Average Shares used in
 computing per share amounts:
 Basic                          104,754   103,806   104,056   103,048
 Diluted                        104,754   108,209   104,056   103,048

(1) Total stock-based compensation expense for the three and twelve
 month periods ended December 31, 2007 and December 31, 2006 are
 presented as follows:

                               Three Months Ended  Twelve Months Ended
                               ------------------- -------------------
                               December  December  December  December
                                31, 2007 31, 2006   31, 2007  31, 2006
                               ---------------------------------------

 Cost of contract revenues     $  1,841  $  1,805  $  5,910  $  8,155
 Research and development      $  6,378  $  3,460  $ 16,199  $ 14,902
 Marketing, general and
  administrative               $  8,189  $  4,421  $ 22,701  $ 17,466

RMBSFN

SOURCE: Rambus Inc.

Rambus Inc.
Nicole Noutsios, 650-947-5050
Investor Relations
nnoutsios@rambus.com
or
Rambus Inc.
Linda Ashmore, 650-947-5411
Public Relations
lashmore@rambus.com

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