InterDigital to Expand Technology Development and Licensing, Realign SlimChip Business to Monetize IP

Restructuring Efforts to Reduce Costs by Approximately $33 Million Pre-Tax
Annualized;

New Investments to Target Invention-Rich Areas in Broader Wireless Segment
KING OF PRUSSIA, Pa.--(Business Wire)--
InterDigital, Inc. (NASDAQ: IDCC) today announced the company`s decision to
expand its technology development and licensing business through targeted new
investment in both cellular and non-cellular wireless technologies.
InterDigital® also intends to cease further product development of its SlimChip™
HSPA technology and proceed to monetize the product investment through
technology licensing. As a result of the alignment of activities, the company
anticipates that its core operating expenses, excluding arbitration and
litigation expenses, will decline by approximately $33 million pre-tax on an
annualized basis compared to 2008.

"The decisions made today will result in substantially higher levels of
profitability for the company and further enhance InterDigital`s position as a
key innovator of wireless technologies," said William J. Merritt, President and
Chief Executive Officer of InterDigital. "Our strength as an organization has
always been invention, whether it is contributing fundamental solutions to the
leading standards bodies or driving the development of entirely new systems and
solutions to serve the needs of wireless users in the future. The rapid
expansion of wireless technologies and services and the increasing needs of
users present a tremendous opportunity for InterDigital to create the solutions
that will make true wireless ubiquity a reality."

InterDigital`s expanded development efforts will include increased participation
in core cellular development and wireless standards bodies, which has
historically generated significant value for the company. Driven by the rapid
expansion of wireless beyond cellular technologies, the company`s development
efforts will also move beyond core cellular into other areas of the overall
wireless segment, building on InterDigital`s current successful efforts in
wireless handover, security and other areas.

The refocusing of the SlimChip business on IP licensing opportunities results
from the company`s decision to evaluate options for the business announced in
October 2008. Discontinuing the development and commercialization of silicon
products and focusing on IP-related opportunities significantly reduces the
company`s cost structure and enables InterDigital to capitalize on the
significant interest in the SlimChip technology that was revealed during the
evaluation process.

"The SlimChip is a clear technology success and all the people who contributed
to it should feel proud of that achievement," added Mr. Merritt. "However, an
increasing proportion of costs were associated with silicon production and
support. Given the significant commoditization of the baseband modem business,
we believe this is the right time to cease further investment in chip
development and aggressively seek to monetize that investment through technology
licensing. Indeed, we already have successfully licensed the 3G modem IP to
Infineon, NXP, and Spreadtrum, and we expect to continue to receive revenue
under these agreements."

The realignment of the SlimChip business will result in a reduction in force of
approximately 100 employees across InterDigital`s three locations. The move is
expected to result in annualized pre-tax cost savings of approximately $33
million, 65 percent of which would be cash-related. With the repositioning in
place, the company expects its development expense for second quarter 2009 to be
in the range of $14 million to $15 million, compared to the $22.7 million
recorded in second quarter 2008.

In addition, the company expects to recognize a repositioning charge of
approximately $45 million in first quarter 2009, comprised of $35 million in
non-cash charges and $10 million in cash charges associated with severance and
other obligations. The non-cash charges relate primarily to intangible assets
associated with development licenses of approximately $21 million and property,
equipment and other assets of approximately $14 million.

Conference Call Information

InterDigital will host a conference call on Monday, March 30, 2009, at 12:00
noon Eastern Time (ET) to discuss this announcement and other company matters.
For access to the conference call within the United States, please dial (888)
802-2225 by 11:50 a.m. ET on March 30th and ask the operator for the
InterDigital Conference Call. Participants calling from outside the United
States should dial (913) 312-1254.

InterDigital will also provide live access to the call on its web site at
www.interdigital.com. The company encourages participants to take advantage of
the Internet option if possible. For the live Internet broadcast, click on the
link to the Live Web Cast on the homepage.

In addition, a replay of the call will be available from 3:00 p.m. ET on March
30th through 3:00 p.m. ET on April 4th. To access the recorded replay, dial
(888) 203-1112 or (719) 457-0820 and use the replay passcode 1046318. A replay
of the conference call will be available for 30 days on InterDigital`s web site,
in the Investing section.

About InterDigital

InterDigital designs, develops and provides advanced wireless technologies and
products that drive voice and data communications. InterDigital is a leading
contributor to the global wireless standards and holds a strong portfolio of
patented technologies, which it licenses to manufacturers of 2G, 2.5G, 3G, and
802 products worldwide. InterDigital's differentiated technology delivers
time-to-market, performance and cost benefits.

For more information, visit www.interdigital.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended. Such statements
include information regarding our current beliefs, plans and expectations,
including, but not limited to, statements with respect to: (i) expansion of the
company`s technology development and licensing business; (ii) realignment of the
SlimChip business; (iii) fiscal 2009 operating expenses excluding patent
arbitration/litigation expense; (iv) increased profitability as a result of the
restructuring efforts; (v) revenues from the company`s licensing agreements with
Infineon, NXP, and Spreadtrum; (vi) the reduction in force and pre-tax cost
savings in connection with the realignment of the SlimChip business; (vii)
second quarter 2009 development expenses; and (viii) a repositioning charge in
first quarter 2009. Words such as "intends," "anticipates," "will," and "expect"
or similar expressions are intended to identify such forward-looking statements.

These forward-looking statements are based on management`s current expectations,
estimates, forecasts and projections about the company and are subject to risks
and uncertainties that could cause actual results and events to differ
materially from those stated in the forward-looking statements. These risks and
uncertainties include, but are not limited to, those identified in this press
release, as well as the following: (i) unexpected deterioration of the company`s
financial condition; (ii) unanticipated developments in the cellular or
non-cellular wireless markets; (iii) our ability to continue to attract, retain
and motivate qualified personnel with specialized licensing, engineering and
other skills; (iv) our ability to leverage our strategic relationships and
secure new licensing agreements for the SlimChip technology on acceptable terms;
(v) changes in technology preferences, needs, availability, pricing and features
of competitive technologies; (vi) unanticipated development or other operating
expenses and the timing of such expenses and costs; (vii) unanticipated delays
or difficulties in our technology development efforts, testing and evaluations;
(viii) the failure of either the company or Infineon, NXP or Spreadtrum to
observe the covenants under their respective license agreement for any reason;
and (ix) changes to generally accepted accounting principles and/or the
company`s existing accounting policies.

Risks and uncertainties that could cause the company`s actual results to differ
from those set forth in any forward-looking statement are discussed in more
detail under "Risk Factors," "Business" and "Management`s Discussion and
Analysis of Financial Condition and Results of Operations" in the company`s
Annual Report on Form 10-K for the year ended December 31, 2008, as well as
similar disclosures in the company`s subsequent Securities and Exchange
Commission filings. Forward-looking statements contained in this press release
are made only as of the date hereof, and the company undertakes no obligation to
update or revise the forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required by applicable
law, regulation or other competent legal authority.

InterDigital is a registered trademark and SlimChip is a trademark of
InterDigital, Inc.

InterDigital, Inc.
Media Contact:
Jack Indekeu, +1 (610) 878-7800
jack.indekeu@interdigital.com
or
Investor Contact:
Janet Point, +1 (610) 878-7800
janet.point@interdigital.com

Copyright Business Wire 2009