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Executives

Satish Rishi – Senior Vice President and Chief Financial Officer

Harold Hughes – Director

Ronald Black – President and Chief Executive Officer

Analysts

Paul Coster – JPMorgan

Hamed Khorsand – BWS Financial

Rambus Inc. (RMBS) Rambus names Ronald Black as President and Chief Executive Officer Conference Call June 25, 2012 4:30 PM ET

Operator

Ladies and gentlemen, thank you for your patience and for standing by. Your Rambus Special Conference Call will begin momentarily. Again, ladies and gentlemen, thank you for your patience. Your Rambus Special Conference Call will begin momentarily. Thank you for your patience and please stand by.

Operator

Good day ladies and gentlemen, and thank you for standing by. And welcome to the Rambus Special Conference Call. At this time, all participants are in a listen-only mode, later we will conduct a question and answer session and instructions will follow at that time. (Operator Instructions) As a reminder, today’s conference maybe recorded. And now it’s my pleasure to turn the call over to Satish Rishi. Please go ahead.

Satish Rishi

Thank you, operator and welcome to the Special Conference Call regarding the appointment of Dr. Ronald Black as Rambus’s President and CEO. I’m Satish Rishi, CFO and on the call today are Harold Hughes and Ron Black.

Before we get into the prepared remarks, I need to mention that a replay of this call will be available for the next week at 855-859-2056. You can use the replay by dialing the toll-free number and then entering ID number 95079698 when you hear the prompt.

In addition, we are simultaneously webcasting this call. With that, let me turn the call over to Harold to make a few comments. Harold?

Harold Hughes

Thanks, Satish and good afternoon everyone. As we stated in today’s press release, the Rambus Board has appointed Dr. Ronald Black as Rambus’s President and Chief Executive Officer and Board Member.

Ron has extensive experience across a number of different industries, which fits well with the diversification strategy we put in place several years ago. As the Board entered the process of finding my successor, we were looking for someone with the passion and interest in a variety of businesses that can take what we’ve established and move to the next level.

I’m proud of what we’ve accomplished during the past seven years, where we are not without our challenges, I believe we are on the right trajectory and Ron is the right person to lead us forward to the next phase. So, with that, I would like to introduce formally, Dr. Ron Black. Ron?

Ronald Black

Thank you, for such a warm welcome Harold. I’m indeed excited to be part of Rambus, the company that I have watched from afar throughout my career and one that I’ve always been deeply impressed with. Rambus’s technical prowess is well known in the industry as its engineers have contributed significantly to the successful evolution of the personal computer making it the ubiquitous platform we know today.

Let me reassure you that we will continue to build on the company’s outstanding technical capabilities fostering the culture of innovation that Harold and the Board has supported over the years.

While we believe that the company is sound, we are however also mindful that our stock price is not reflecting the inherent value we believe the company represents. Simply put, we need to profitably grow the company and demonstrate that our brilliant engineers can create technology that customers want to buy.

Certainly, part of the issue with our stock price is related to the potentially large swings in cash that can result from litigation. Unfortunately, such litigation is from time to time, required in the high tech space in order to protect one’s IP and seek compensation for its unlicensed use.

Let me be clear however that we will increasingly focus on the more collaborative technology licensing approach that allows us to engage customers for the long term. Indeed, I must prefer the carrot of collaborative development of technology for or with customers than the stick of litigation for patent infringement. The carrot of our outstanding technical expertise is the approach now used increasingly by the semiconductor business group, SPG, which has developed a wealth of new technologies that are just rolling out and also the acquired businesses including our lighting and cryptography divisions, which form the bulk of the New Business Group or NBG.

For instance, the lighting division has signed industry-leading partners in a relatively short period of time indicating that customers value are novel LED based lighting technologies built on deep expertise in electronic system engineering, thermal management and optoelectronics.

Similarly, on the security side, CRI has been instrumental in helping customers avoid security breaches that may allow their high value content to be accessed without permission or the private information of end-consumers to be stolen or violated. I am very impressed with CRI’s list of customers and believe that our technology will be increasingly important for the industry in the future.

In conclusion, there are many interesting and exciting things going on here at Rambus. My initial priority is to meet with these many customers and partners, as possible in order to get a full assessment of where we are and what our most attractive opportunities lie. This is certainly a company that is rich in invention and expertise. I very much look forward to delivering positive results for customers, shareholders and employees.

Thank you. Let’s move on to questions. Operator, will you please open the lines for Q&A?

Question-and-Answer Session

Operator

Yes sir. (Operator Instructions) Our first questioner in queue comes from Paul Coster with JPMorgan. Please go ahead.

Paul Coster – JPMorgan

Thank you very much. Thanks for taking my question. When you talk of a more collaborative approach to generating revenues, are you thinking beyond licensing into sort of professional services type arrangements?

Ronald Black

Hi, Paul, it’s Ron. Thanks for the question. Yes, I think that’s certainly a possibility. I talked to all of the business heads and there is some element of that. In fact, I would say in all high tech companies that I’ve worked with, that is a strong element and something that people want to develop to capture the customers and maintain their focus on.

Paul Coster – JPMorgan

And then, your prior experience Ron, includes Wavecom and UPEK, both of whom was sold. It sounds like one of them was sold during your tenure as CEO. And I’m just wondering if you can give us a little bit of your thoughts on the process of creating shareholder value and where potential sales fits into the mix even on joining Rambus?

Ronald Black

So, in fact, both of those companies were sold during my tenure. I think that’s always a possibility. I look at things very pragmatically that you either create value or you find somebody else that can. I happen to think very strongly that this company on the course that has been charted by Harold and the Board will continue to create value. And as I said in the prepared remarks, I certainly see the stock as not delivering on the value that we think is here. So, short term, clearly I have no view on selling the company, but it’s something that I am prepared to do if and when the Board thinks that that’s right thing to do.

Paul Coster – JPMorgan

All right, thanks very much, Ron. Welcome to the fray.

Ronald Black

Thank you.

Operator

Thank you sir. (Operator Instructions) Next questioner in queue is Hamed Khorsand with BWS Financial. Please go ahead. Your line is now open.

Hamed Khorsand – BWS Financial

Hi, congrats on the job. My question is really just trying to get a clarification on a comment you made earlier about being focused on profitability. Would that mean that there is going to be more effort to extract revenue from the patent portfolio reduction in R&D spending? Could you collaborate on that more a little bit?

Ronald Black

Certainly, given that this is my first day on the job. It’s a little bit hard to say which way it would go under. The preference is always finding ways to delight customers and drive additional top line revenue. So that’s always the preference. I haven’t gone through any detailed analysis yet with the team. I’ve certainly spent in my analysis and diligence of the company, a lot of time with the Board and the senior management and I believe this company is poised for significant growth.

Hamed Khorsand – BWS Financial

Okay. Thank you.

Operator

(Operator Instructions) At this time, there appears to be no additional questioners in the queue. I’d like to turn the program back over to Ron for any closing remarks.

Ronald Black

Yes, thank you and thank you all for the interest in Rambus. I look forward to the opportunity to meet you and speak with you again in the near future.

Operator

Thank you, sir. Ladies and gentlemen, again this does conclude today’s program. Thank you for your participation and have a wonderful day. Attendees, you may disconnect at this time.

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