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Revenue of $29.4 million; loss of $0.27 per share

LOS ALTOS, CALIFORNIA, UNITED STATES – 10/23/2008 – 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 third quarter of 2008.

Revenues for the third quarter of 2008 were $29.4 million, down 17.6% sequentially from the second quarter and down 29.5% over the third quarter of last year. Revenues for the nine months ended September 30, 2008 were $104.9 million, down 24.8% over the same period of last year.

“With the FTC restrictions on our royalties removed and annual savings of $17 million expected through our restructuring efforts, we are confident in our ability to pursue our strategic objectives,” said Harold Hughes, president and chief executive officer at Rambus. “Foremost among these is our steadfast commitment to investments in breakthrough technology, and efforts to protect and be fully compensated for our patented inventions.”

Total costs and expenses for the third quarter of 2008 were $60.0 million, which included $9.0 million of stock-based compensation expenses, $4.0 million of restructuring related expenses, $2.2 million of asset impairment expenses and $0.4 million for the previous stock-based compensation restatement and related legal expenses. This is compared to total costs and expenses of $52.6 million for the second quarter of 2008, which included $9.0 million of stock-based compensation expenses and $2.3 million of restatement and related legal expenses. General litigation expenses for the third quarter of 2008 were $15.7 million, an increase of $6.6 million from the second quarter of 2008.

As compared to the third quarter of last year, total costs and expenses increased from $58.2 million, which included $8.7 million of stock-based compensation expenses and $4.2 million of restatement and related legal expenses. General litigation expenses in the third quarter of 2008 increased $4.0 million from the third quarter of 2007.

Total costs and expenses for the nine months ended September 30, 2008 were $175.6 million, which included $28.5 million of stock-based compensation expenses, $4.0 million of restructuring-related expenses, $2.2 million of asset impairment expenses and $3.6 million for the previous stock-based compensation restatement and related legal expenses. This is compared to total costs and expenses of $177.5 million for the same period of 2007, which included $28.4 million of stock-based compensation expenses and $18.6 million of restatement and related legal expenses. General litigation expenses for the nine months ended September 30, 2008 were $38.0 million, an increase of $14.7 million from the same period in 2007.

Net loss for the third quarter of 2008 was $27.9 million compared to a net loss of $144.7 million in the second quarter of 2008 and a net loss of $6.5 million in the third quarter of 2007. Net loss per share for the third quarter of 2008 was $0.27 as compared to a net loss per share of $1.38 in the second quarter of 2008 and a net loss per share of $0.06 for the third quarter of 2007. Net loss for the nine months ended September 30, 2008 was $185.2 million as compared to a net loss of $13.1 million for the same period of 2007. Net loss per share for the nine months ended September 30, 2008 was $1.77 as compared to a net loss per share of $0.13 in the same period of 2007.

Cash, cash equivalents and marketable securities as of September 30, 2008 were $379.0 million, down approximately $15.2 million from June 30, 2008 and down approximately $61.9 million from December 31, 2007. During the third quarter of 2008, the Company repurchased approximately 0.6 million shares of common stock for an aggregate value of $10.0 million. During the first nine months of the year, the Company repurchased approximately 2.0 million shares of common stock for an aggregate value of $34.9 million and also paid out a net of $13.3 million related to the settlement of a class action lawsuit related to the timing of past stock option grants.

The conference call discussing third quarter results will be webcast live via the Rambus Investor Relations website (https://investor.rambus.com) at 2:00 p.m. Pacific Time today. A replay will be available following the call on Rambus’ Investor Relations website and for one week at the following numbers: (888) 203-1112 (domestic) or (719) 457-0820 (international) with ID# 5134540.

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)
	September 30, 2008	December 31, 2007
Assets
Current assets:
Cash and cash equivalents	$ 106,786	$ 119,391
Marketable securities	272,186	321,491
Accounts receivable	1,740	442
Unbilled receivables	690	1,478
Prepaids and other current assets	8,141	8,349
Deferred taxes	222	11,595
Total current assets	389,765	462,746
Restricted cash	1,238	2,286
Deferred taxes, long-term	2,613	116,209
Intangible assets, net	8,040	13,441
Property and equipment, net	23,672	24,587
Goodwill	4,454	4,454
Other non-current assets	4,791	3,624
Total assets	$ 434,573	$ 627,347
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$ 9,091	$ 11,283
Accrued payroll and related benefits	9,478	9,985
Accrued litigation expenses	13,636	26,234
Other accrued liabilities	5,467	5,894
Deferred revenue	2,329	2,756
Total current liabilities	40,001	56,152
Long-term liabilities:
Convertible notes	160,000	160,000
Other long-term liabilities	3,824	4,111
Total long-term liabilities	163,824	164,111
Total stockholders’ equity	230,748	407,084
Total liabilities and stockholders’ equity	$ 434,573	$ 627,347

Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)
	Three Months Ended		Six Months Ended
	September  30, 2008	September 30, 2007	September 30, 2008	June 30, 2007
Revenue:
Royalty revenue	$ 25,793	$ 35,327	$ 91,174	$ 118,263
Contract revenue	3,635	6,388	13,707	21,145
Total revenues	29,428	41,715	104,881	139,408
Costs and expenses:
Cost of contract revenues (1)	4,611	5,781	18,411	18,878
Research and development (1)	17,511	18,312	59,048	60,339
Marketing, general and administrative (1)	31,288	29,914	88,377	79,657
Restructuring costs (1)	4,024		4,024
Impairment of asset	2,158		2,158
Costs of restatement and related legal activities	392	4,169	3,564	18,631
Total costs and expenses	59,984	58,176	175,582	177,505
Operating loss	(30,556)	(16,461)	(70,701)	(38,097)
Interest and other income, net	2,704	5,645	10,207	16,496
Loss before income taxes	(27,852)	(10,816)	(60,494)	(21,601)
Provision for (benefit from) income taxes	92	(4,318)	124,748	(8,495)
Net loss	$ (27,944)	$ (6,498)	(185,242)	(13,106)
Net loss per share:
Basic	$ (0.27)	$ (0.06)	(1.77)	(0.13)
Diluted	$ (0.27)	$ (0.06)	(1.77)	(0.13)
Weighted-Average Shares used in computing per share amounts:
Basic	104,897	103,820	104,795	103,820
Diluted	104,897	103,820	104,795	103,820
(1) Total stock-based compensation expense for the three and six month periods ended September 30, 2008 and September 30, 2007 are presented as follows:
	Three Months Ended		Six Months Ended
	September 30, 2008	September 30, 2007	September 30, 2008	September 30, 2007
Cost of contract revenues	$ 1,321	$ 1,333	$ 4,604	$ 4,069
Research and development	$ 3,326	$ 3,190	$ 10,997	$9,821
Marketing, general and administrative	$ 4,371	$ 4,138	$ 12,899	$14,512
Restructuring costs	$ 547		$ 547

LOS ALTOS, CALIFORNIA, UNITED STATES – 10/16/2008 – Rambus Inc. (Nasdaq:RMBS), one of the world’s premier technology licensing companies specializing in high-speed memory architectures, will hold a conference call on October 23, 2008 at 2:00 p.m. Pacific Time to discuss its third quarter 2008 financial results.

This call will be webcast and can be accessed via Rambus’ web site at https://investor.rambus.com. A replay will be available following the call on Rambus’ Investor Relations web site or for one week at the following numbers: (888) 203-1112 (domestic) or (719) 457-0820 (international) with ID# 5134540.

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. Since its founding in 1990, the Company’s patented innovations, breakthrough technologies and renowned integration expertise have helped industry-leading chip and system companies bring superior products to market. Rambus’ innovations and solutions enable unprecedented performance in computing, communications, and consumer electronics applications. Rambus licenses both its world-class patent portfolio as well as a range of leadership and industry-standard memory solutions. Headquartered in Los Altos, California, Rambus has regional offices in North Carolina, India, Germany, Japan, and Taiwan. Additional information is available at www.rambus.com.