InterDigital and Capital Semiconductor Enter into 3G Technology Transfer Agreement

InterDigital to Deliver SlimChip Modem Core to CapiSemi

BEIJING & KING OF PRUSSIA, Pa., May 19, 2010 -- Capital Semiconductor Limited ("CapiSemi") of Beijing, China and InterDigital, Inc. (NASDAQ: IDCC) today jointly announced that CapiSemi and InterDigital Communications, LLC have entered into a strategic relationship for 3G technology transfer and a mutually beneficial licensing agreement, whereby InterDigital will deliver its SlimChip(TM) modem core for integration into CapiSemi's chips for 3G mobile devices.

The SlimChip modem core features 3G modem technology with HSPA compliant with the UMTS 3GPP Release 6 standard. InterDigital will also provide comprehensive engineering support for the efficient integration of the SlimChip modem core into CapiSemi's products for the 3G cellular market. In exchange, CapiSemi and InterDigital have agreed upon a licensing agreement that the companies believe will support mutual success in the 3G market.

"As a well-known fundamental wireless technologies and solutions provider, InterDigital has established itself as a respectful and outstanding technology company in the world. We are very pleased that CapiSemi has been able to form a strategic technology relationship with such a competitive company which is leading the world in the development of wireless technologies," said Shugang Li, President of CapiSemi. "CapiSemi will be closely working with InterDigital to develop our 3G and 4G Baseband chip products and wireless module solutions. CapiSemi will first use the proven 3G SlimChip Modem technology from InterDigital in our first generation of HSPA Baseband chip products. With this as the beginning of our successful technology cooperation, I believe that CapiSemi and InterDigital will be able to extend our success into the era of 4G and beyond, and to support the creation of handset industry value chain and to build up a solid technology foundation for the successful realization of the 'Mobile Silicon Valley' industry base vision that is set forth by the Beijing Government for the advancement of mobile industry in Beijing to benefit local life."

"We're pleased that CapiSemi has chosen our proven SlimChip modem core for their 3G chips," said William J. Merritt, President and Chief Executive Officer of InterDigital. "Today, our modem core is already shipping in millions of 3G devices around the world. We have been very impressed by CapiSemi's technical capabilities and ambition to become a leading 3G chip supplier. We are confident that our joint technology solution should enable CapiSemi to profit in the fast-growing 3G market in China and beyond."

About Capital Semiconductor Limited

Capital Semiconductor Limited was founded in August 2009, as co-investment by TechFaith Group Technology Co. Ltd. (NASDAQ: CNTF) and Beijing YiZHuang International Investment Development Co. Ltd. The Company is headquartered in the Beijing Economic and Technology Development Area (YiZhuang), with registered capital of 1 billion RMB.

CapiSemi is mainly focused in the research and development of mobile communications chip technologies and wireless module products for 3G and 4G markets. CapiSemi offers highly differentiated total mobile terminal solutions to provide mobile value added services with rich multimedia contents to help facilitate the applications of advanced technologies for the advancement of mobile industry in Beijing and to generally benefit local life and give the world whole new experiences.

For more information, visit: www.capisemi.com.

About InterDigital

InterDigital develops fundamental wireless technologies that are at the core of mobile devices, networks, and services worldwide. We solve many of the industry's most critical and complex technical challenges, inventing solutions for more efficient broadband networks and a richer multimedia experience years ahead of market deployment. InterDigital has licenses and partnerships with many of the world's leading wireless companies.

For more information, visit: www.interdigital.com.