Exhibit 99.1
ACACIA
RESEARCH
CORPORATION CONTACTS: Rob Stewart
Investor Relations
FOR RELEASE Tel (949) 480-8300
- ----------- Fax (949) 480-8301
December 16, 2004 Email: rs@acaciares.com
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ACACIA TECHNOLOGIES PLANS TO ACQUIRE RIGHTS
TO 27 NEW PATENT PORTFOLIOS
ACQUISITION WOULD SIGNIFICANTLY EXPAND
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REVENUE GENERATING OPPORTUNITIES FROM 121 PATENTS
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Newport Beach, CA. - (BUSINESS WIRE) December 16, 2004 - Acacia
Research Corporation (Nasdaq: ACTG: CBMX) announced today that it has signed a
binding Letter of Intent to acquire the assets of Global Patent Holdings, LLC, a
privately held patent holding company based in Northbrook, Illinois, which owns
11 patent licensing companies including TechSearch, LLC
(www.techsearch-llc.com). The acquisition would give the Acacia Technologies
Group control of companies with 27 patent portfolios, which include 121 U.S.
patents and certain foreign counterparts, and cover technologies used in a wide
variety of industries. Eleven of the patent portfolios have been partially
licensed and have generated over $40 million in non-recurring, gross licensing
revenues to date.
The total cost of the transaction is expected to be $5 million in cash
and approximately 3.9 million shares of Acacia Research--Acacia Technologies
stock, at closing, and an additional $2 million in cash to be paid over two
years. The transaction is expected to close within 45 days, pending completion
of final due diligence by Acacia.
"This acquisition would significantly expand and widely diversify our
revenue generating opportunities and would accelerate the execution of our
business strategy of acquiring, developing and licensing patented technologies
by 2 to 3 years," said Paul Ryan, Chairman & CEO of Acacia.
"We look forward to working closely with Anthony O. Brown, Global's
CEO, and his team including inventors of these patented technologies and the
leading law firms that Tony has assembled. Acacia's licensing, engineering and
legal teams would further enhance and optimize the revenue potential of these
patent portfolios. We will continue to acquire additional portfolios, as Acacia
moves toward its goal of becoming the leading technology licensing company,"
concluded Mr. Ryan.
The new patents relate to certain aspects of various technologies or
products, including:
o Broadcast Equipment
o Broadcasting and Data Transmission
o Cache Coherency
o Credit Card Receipt Processing
o Data File Synchronization
o Datamatrix Bar Codes
o Dynamic Manufacturing Models
o Encryption and Product Activation
o Hand Held Endoscopes
o Image Resolution or Enhancement
o Interactive Simulation Systems
o Interstitial Internet Advertising
o Peer to Peer Network Communications
o Programs for Resource Scheduling/Displaying Interrelated
Tables
o Spreadsheet Programs
o Video Noise Reduction and Audio/Video Synchronization
Acacia is currently licensing its Digital Media Transmission (DMT(R)) technology
and has entered into 277 DMT(R) licensing agreements, including 95 cable TV
licenses, 178 licenses for online entertainment, movies, news, sports,
e-learning and corporate websites and licenses with companies that provide over
90% of video-on-demand TV entertainment to the hotel industry in the United
States. Acacia has also recently launched the licensing program for its Internet
Access Redirection ("IAR") technology covering redirected Internet registrations
commonly used at wireless hotpots.
ABOUT ACACIA RESEARCH CORPORATION
Acacia Research Corporation comprises two operating groups, Acacia Technologies
group and CombiMatrix group.
The Acacia Technologies group develops, acquires, and licenses patented
technologies. Acacia's DMT(R) technology, which is supported by 5 U.S. and 31
foreign patents, relates to audio and audio/video transmission and receiving
systems commonly known as audio-on-demand, video-on-demand, and audio/video
streaming, and is used for distributing digital content via several means
including Internet, cable, satellite and wireless systems. Acacia's Internet
Access Redirection ("IAR") technology covers redirected Internet registrations
commonly used at wireless hotspots and hotels.
The CombiMatrix group is developing a platform technology to rapidly produce
customizable active biochips, which are semiconductor-based tools for use in
identifying and determining the roles of genes, gene mutations and proteins.
CombiMatrix's technology has a wide range of applications including DNA
synthesis/diagnostics, drug discovery, and immunochemical detection.
CombiMatrix's Express Track(sm) drug discovery program is a systems biology
approach, using its technology, to target common viral diseases with siRNA
compounds.
Acacia Research-Acacia Technologies (Nasdaq: ACTG) and Acacia
Research-CombiMatrix (Nasdaq: CBMX) are both classes of common stock issued by
Acacia Research Corporation and are intended to reflect the performance of the
respective operating groups and are not issued by the operating groups.
INFORMATION ABOUT THE ACACIA TECHNOLOGIES GROUP AND THE COMBIMATRIX GROUP IS
AVAILABLE AT www.acaciaresearch.com.
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SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements within the meaning of the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. These statements are based upon our current expectations and speak only as
of the date hereof. Our actual results may differ materially and adversely from
those expressed in any forward-looking statements as a result of various factors
and uncertainties, including the recent economic slowdown affecting technology
companies, our ability to successfully develop products, rapid technological
change in our markets, changes in demand for our future products, legislative,
regulatory and competitive developments and general economic conditions. Our
Annual Report on Form 10-K, recent and forthcoming Quarterly Reports on Form
10-Q, recent Current Reports on Forms 8-K and 8-K/A, and other SEC filings
discuss some of the important risk factors that may affect our business, results
of operations and financial condition. We undertake no obligation to revise or
update publicly any forward-looking statements for any reason.