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ACACIA RESEARCH GROUP, LLC


ACACIA

RESEARCH

GROUP LLC

UNLOCKING patent POTENTIAL

NASDAQ: ACTG A Subsidiary of Acacia Research Corporation



Forward Looking Statements

This presentation contains forward looking statements within the meaning of

the “safe” harbor provisions of the Private Securities Litigation Reform Act of

1995. These statements address future events and conditions concerning the

company’s business plans. Such statements are based on management’s

current expectations and are subject to a number of factors and uncertainties,

such as future economic conditions, changes in consumer demand, legislative,

regulatory and competitive developments, and other circumstances affecting

anticipated revenues and costs, which may cause actual results to differ

materially. The company expressly disclaims any future obligation or

undertaking to update or revise any forward looking statement contained

herein.

CONFIDENTIAL AND PROPRIETARY 2



ACACIA

is at the

TRANSACTIONAL

CENTER of

INNOVATION.

3




Unlocking

Patent Potential

Acacia is the No. 1 outsourced partner for monetizing patented technologies


*as of 4/22/2015

Key Financial Information

NASDAQ Listing ACTG

Stock Price* $9.83

Market Capitalization $546M

2014 Revenue $131M

Cash and Investments (No Debt) $166M

Dividend Yield 4.7%

• Intermediates transactions between patent owners & patent infringers by partnering with patent owners

• Facilitates efficiency and delivers

monetary rewards to the patent owner • Approximately $691M returned to patent

partners



Investment Highlights

Empowering Inventors and Patent Owners

• Leading outsourced patent licensing company an emerging patent

clearinghouse

• Strategic focus on more consistent, predictable and profitable business model

• Robust portfolio of diverse licensing programs across multiple industries

• Accelerating trial calendar—2015 and 2016 more than 20 trials

• Strong operating leverage with highly scalable business model

• Deep legal and technology expertise

• Deep industry knowledge

• Presently proposed patent reform legislation is good for Acacia




Rewarding the Idea Makers

and the World Changers

Acacia is a leading player in the secondary patent market

• Most patents are owned by entities that do not make products covered by their patents

• Acacia partners with patent owners to bridge the gap between invention and production, helping patent owners get paid by licensing their patents to the companies that use them

• Outsourced IP licensing transactions help promote a secondary market for these patents

6

Patent Owners

Products & Services

ACACIA

(Clearinghouse)

CONFIDENTIAL AND PROPRIETARY



7

Demand: Needs Driving Patent Holders To Outsource Monetization

or Why Do Patent Owners Partner With Acacia?

• Complexity of current environment

• Interdisciplinary experience (Licensing, Business, Engineering)

• History and track record of success

Licensing

Expertise

• High cost for internal licensing programs

• Longer time to revenue

• Scale: Serial vs. Parallel Licensing

Risk Mitigation

• Transforming patents into cash

• Short term cash flow

• Long term royalty stream

Liquidity




Financial Models


Hybrid Partnership Acquisition Model

Acacia 70-100%

Legal 0-30%

Acacia buys 100% of the patents for 100% of the profits

Typical partners:

• Distressed Corporations

• Failed Corporations Controlled by VCs

Higher margins with increased upside potential

How it works:

• Up-front capital infusion as an advance on future licensing

• Acacia receives 100% of return until capital infusion is returned

Objectives:

• Recover capital infusion in 18-24 months

• Upon return of capital infusion, net profit revenue split with patent partner begins

• 3x return of capital in 5 years

Purpose:

• Increases Acacia’s total addressable market

• Strong Balance Sheet yields competitive advantage

Typical partners for Acacia:

• Major corporations

• Research labs and universities

• Individual inventors

Protects patent owner from countersuits

High margins with upside leverage

Partnership

40% Patent Owner

40% Acacia

20% Law Firm

Patent Diligence

License patents to corporate

users

Pay legal costs

Split net profit 50/50 with patent

owner



Creating Opportunity Marquee Portfolios + New Industry Verticals


Smart Phones, Tablets, PCs and TVs • Palmsource mobile computing • Adaptix 4/4.5G wireless air interface • Nokia Siemens Networks 2G/3G wireless air interface • Rambus backlighting units • Silicon Image high speed chip interconnects • Silicon Image high speed display interfaces • VoiceAge high definition voice • ST Micro shared memory architectures for application processors • Renesas semiconductors

Medical Devices and Technology (Launched 2011) • Bonutti Skeletal Innovations • Boston Scientific stent grafts Automotive (Launched 2013) • Automotive Technologies International safety, diagnostics and navigation • Telematics • Smartphones portfolios, as set out above, (Adaptix, 4/4.5G, Palmsource Mobile

Computing etc.) Energy (Launched 2013) • Austin Geo 3D subsurface visualization • Covertech reflective insulation



Smart Phone Coverage


Rambus 69 Patents LED back lighting

Access 125 Patents Sync, Apps, User Interface

VoiceAge 274 Patents High Fidelity Voice Codecs

Adaptix 205 Patents 4G/4.5G OFDM, Cooperative Diversity

Silicon Image 1 138 Patents High Speed Chip Interconnect

NSN 74 Patents 2G/3G Power Control, Handover, Coding

Silicon Image 2 10 Patents High Speed Display Interfaces

ST Micro 13 patents Shared memory architectures for application processors



Stent Graft and Vena Cava Filter Patent Coverage

• 1800+ Patents

• Single largest collection of US patents covering stent graft technology

• Comprehensive worldwide coverage

• Portfolios come from leading researchers and corporations

11

Orthopedics and Sports Medicine

• Over 150 Patents and applications

• Technologies covered include: Spine, hip, knee, shoulder, biologics and tissue repair


Emerging Opportunities



Driver-Assistance

Vehicle Sensing American Vehicular Sciences • 230 patents covering automotive safety, navigation and diagnostics

technologies • Ranked 1st in research intensity and as 32nd overall innovator in

The Patent Board TM January 2012 Automotive & Transportation Industry Scorecard

Rambus Automotive Illumination

• Covering illumination applications including, headlights, taillights, instrumentation, internal & external lighting

Rambus Backlighting Units

• 69 Patents covering LED back lighting for navigation and infotainment displays

Palmsource • 125 patents covering sync, apps, user interface

Adaptix

• 205 Patents covering 4G/4.5G OFDM, cooperative diversity

NSN

• 74 Patents covering 2G/3G power control, handover, coding

12

Emerging Opportunities

Automotive & Transportation Industry




Mobile Phones & Tablets*

Digital Home* Laptops & PCs* Automobiles*

Patented Technology*

Semiconductors

Wireless Air Interfaces

Software

Displays

13

Patents: Apply To A Wide Variety Of Products

Constant infusion of new technology creates licensing opportunities

*Representative sampling only




2015 Opportunities – Strong Trial Date Calendar

• Opportunities continue ramping up throughout 2015

• Multiple Adaptix trials – EDTex and NDCal (Q1-Q2)

• Adaptix hearings – Japan (Ongoing Q1-4)

• Multiple St. Lawrence (VoiceAge) trials – Germany (Q1-2)

• PUMA (STMicro) trials – EDTex (Q4)

• Lifescreen (Boston Sci) trials – DDel (Q4)

• IDT (Rambus) trials – EDTex (Q1)




2016 and Beyond – Trial Dates Set and Continue to Populate

• 2016 promises to continue the momentum from 2015

• CCE (NSN) trials set for 2016 • Lifeport (Boston Sci) trials set for 2016 • Additional Adaptix trials in 2016 • Data Engine (Borland) trials in 2016 • Patent portfolios continue to grow

• Over 90 new litigations filed in Q1-Q3 2014 without Markman or Trial dates yet • Trials likely to be set for 2016 and 2017

• Trials, Markmans, IPR decisions etc. all present value setting points

• While dates may change, the revenue opportunities still exist




FINANCIAL

metrics.




Financial Performance

The Power of Innovation


2009 (000’s)

2010 (000’s)

2011 (000’s)

2012 (000’s)

2013 (000’s)

2014 (000’s)

Q1 2015* (000’s)

Revenues $67,340 $131,829 $184,707 $250,727 $130,556 $130,876 $34,210

Non-GAAP Operating Margin

.6% 37.5% 24.4% 54.8% (1.1%) 7.1% 9.2%

Non-GAAP Net Income

$409 $49,405 $45,013 $137,339 ($1,424) $9,328 $3,155

Pro-forma Non-GAAP EPS

$.01 $1.46 $1.12 $2.80 ($0.04) $0.18 $0.06

*Q1 2015 financials (Jan 1, 2015 – Mar 31, 2015)



Cumulative Licensing Revenue

by Size of Licensee

95% of Licensing Revenue from Companies Generating > $100 Million Annually

Large Licensees Drive Acacia’s Business


Licensee Revenue

Size

Less than $100M

$101M - $1B > $1Billion

Percent Of Acacia Business

5% 15% 80%


ACACIA RESEARCH GROUP, LLC ACACIA RESEARCH GROUP, LLC

returns to PATENT OWNERS


Our partnership with patent owners is the cornerstone of Acacia’s corporate strategy.

691,000,000



ACACIA

RESEARCH

GROUP LLC

UNLEASHING patent POTENTIAL

NASDAQ: ACTG A Subsidiary of Acacia Research Corporation

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