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THE BUSINESS OF INVENTION

2011 Annual Meeting of Shareholders


2011 InterDigital, Inc. All rights reserved.

REMARKS BY THE CHAIRMAN OF THE BOARD

2011 Annual Meeting of Shareholders


2011 InterDigital, Inc. All rights reserved.

Board of Directors

Dr. Gilbert Amelio

Senior Partner at Sienna Ventures Joined InterDigital Board of Directors in March 2011 Former CEO and Chairman of Apple Computer, former President, CEO and Chairman of National Semiconductor, and former President of Rockwell Communication Systems Serves on the boards of directors of AT&T and Pro-Pharmaceuticals

Jean Rankin

Executive Vice President, General Counsel and Secretary, LSI Corporation Joined InterDigital Board of Directors in June 2010 Manages LSIs legal, intellectual property licensing and stock administration organizations Held executive leadership positions at Agere and Lucent Technologies

2011 InterDigital, Inc. All rights reserved.

Board of Directors
Jeffrey Belk

Managing Director of ICT168 Capital, LLC Joined InterDigital Board of Directors in March 2010 Held executive positions at Qualcomm, responsible for strategy and market development, and prior to that, for global marketing Member of the Boards of Directors of Peregrine Semiconductor and the Wireless Life Sciences Alliance, and is also on the Advisory Boards of CommNexus, Roundbox, and NetroCity

John Kritzmacher

Executive Vice President and Chief Financial Officer, Global Crossing Limited Joined InterDigital Board of Directors in June 2009 Served as Chief Financial Officer at Lucent Technologies, where he managed functions including finance, accounting, treasury, tax, internal audit, investor relations and global real estate.

2011 InterDigital, Inc. All rights reserved.

Board of Directors
William J. Merritt

President and Chief Executive Officer, InterDigital InterDigital President and CEO, and member of the Board of Directors since May 2005 Key role in building a program of licensing InterDigital's intellectual property and overseeing the growth in its patent licensing business Served as Executive Vice President, General Counsel and Secretary of InterDigital.

Edward Kamins

Principal Member, Upfront Advisors Joined InterDigital Board of Directors in December 2003 Served as Corporate Senior Vice President of Avnet Former member of Board of Directors of Calence (acquired by Insight Enterprises)

2011 InterDigital, Inc. All rights reserved.

Board of Directors
Robert Roath
Chief Financial Officer (Retired), RJR Nabisco, Inc. Joined InterDigital Board of Directors in May 1997 Former strategic and financial executive with diversified corporate and operating experience with Colgate-Palmolive, General Foods, GAF Corporation and Price Waterhouse Serves as Chairman of the Board of Directors of Standard Parking and Chairman of the Advisory Board to L.E.K. Consulting

Steven Terry Clontz

Managing Director for North America and Europe, Singapore Technologies Telemedia Joined InterDigital Board of Directors in April 1998 and was elected Chairman of the Board in January 2010 Served as President and Chief Executive Officer of StarHub in Singapore and continues to serve as a Non-Executive Director of StarHub Served as President and Chief Executive Officer and an executive Director of IPC Information Systems, and President of the Asia Pacific Region for BellSouth International Member of the Boards of Directors of eircom Limited in Ireland and Equinix and of the Executive Committee of the Board of Directors of Global Crossing Limited

2011 InterDigital, Inc. All rights reserved.

New Developments for Shareholders


Initiated Regular Quarterly Cash Dividend Board signaled intention in October 2010 First quarterly dividend of $0.10 per share paid February 2, 2011 Reflects stability of company and confidence in long-term prospects $230 million in senior convertible notes issued on April 4, 2011 in private placement transaction Provides additional strength for the balance sheet Builds flexibility to support growth of the franchise including potential acquisitions Created visibility with high caliber members of the investment community Best-in-class corporate governance Terminated shareholder rights plan in 2010 Provided in 2010 for transition to the annual election of directors beginning in 2011 Moved to establish majority voting standard for uncontested director elections in 2011

2011 InterDigital, Inc. All rights reserved.

FORMAL BUSINESS MEETING

2011 Annual Meeting of Shareholders


2011 InterDigital, Inc. All rights reserved.

PRESENTATION BY MANAGEMENT

2011 Annual Meeting of Shareholders


2011 InterDigital, Inc. All rights reserved.

Safe Harbor Statement


This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding InterDigital, Inc.s current beliefs, plans and expectations as to: (i) future results, projections and trends; (ii) its strategy; (iii) its 3G/4G revenue growth potential and the growth potential of its 3G/4G patent licensing program and 4G/LTE royalty rates; (iv) the development of next generation cellular technologies, including LTE and LTE-Advanced; (v) future global mobile device sales and market opportunities; and (vi) selective acquisitions and investment opportunities. Such statements are subject to the safe harbor created by those sections. Words such as anticipate, believe, estimate, expect, project, intend, plan, forecast, variations of any such words and similar expressions, and graphical charts and timelines representing future estimates or events are intended to identify such forward-looking statements. Actual results and events may differ materially from those described in any forward-looking statement as a result of certain risks and uncertainties, including, without limitation: (i) the market relevance of our technologies; (ii) changes in the needs, availability, pricing and features of competitive technologies as well as those of strategic partners or consumers; (iii) unanticipated technical or resource difficulties or delays related to further development of our technologies; (iv) our ability to leverage or enter into new customer agreements, strategic relationships or complementary investment opportunities on acceptable terms; (v) our ability to enter into additional patent license agreements; (vi) changes in expenses related to our technology offerings and operations; (vii) whether we have the appropriate financial assets and/or cash flows; (viii) unfavorable outcomes in patent disputes and the expense of defending our intellectual property rights; (ix) changes in the market share and sales performance of our primary licensees, and any delay in receipt of quarterly royalty reports from our licensees; (x) changes or inaccuracies in market projections; and (xi) changes in our strategy to pursue complementary acquisitions and partnerships, as well as other risks and uncertainties, including those detailed in our Annual Report on Form 10-K/A for the year ended December 31, 2010 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 and from time to time in our other Securities and Exchange Commission filings. We undertake no obligation to update any forward-looking statement contained herein except as required by law.

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2011 InterDigital, Inc. All rights reserved.

The Business of Invention

Market Positioning Overview

Envision

Invent

Protect

Evangelize

License

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2011 InterDigital, Inc. All rights reserved.

2010: Continued Steady Revenue Growth


Historical Revenue Performance
($ in Millions) $500.0 $480.5

2001 2010 CAGR: +25%

$400.0 $253.0 $300.0

$200.0 $297.4 $100.0 $163.1 $87.9 $52.6 $0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 $114.6 $103.7 $227.5 $234.2 $228.5

$394.5

2010

___________________________ 1. Red dotted bar represents $253mm of revenue recognition related to resolution of patent licensing matters with Nokia.

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2011 InterDigital, Inc. All rights reserved.

Secular Revenue Growth and Strong Leverage


Historical Revenues
($ in Millions)

Historical Net Margins(1)


(% of Revenues)

$395
$400 $234 $200 $229 $297

40%

39%

29%
$0 2007 2008 2009 2010

Historical Diluted EPS


($)
$4.00 $1.97 $2.00 $0.40 $0.00 2007 2008 2009 2010 $0.57

20%

$3.43

11% 9%

0% 2007 2008 2009 2010

___________________________ Note: All metrics are GAAP. Source: InterDigital financial statements. 1. Net margins represent net income applicable to common shareholders divided by revenues.

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2011 InterDigital, Inc. All rights reserved.

2011: Year-to-date Financial Highlights


Strong balance sheet Cash and short term investments of $527 million as of March 31, 2011 $230 million in senior convertible notes issued on April 4, 2011 in private placement transaction $78.5 million of revenues, net income of $23.3 million in first quarter 2011 Predictable revenues based on existing licensing contracts License agreement with Acer, Inc. (covers 2G, 3G and 4G wireless technologies) Significant operating leverage

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2011 InterDigital, Inc. All rights reserved.

IPR Has Emerged as an Asset Class


The wireless IPR Market is increasingly competitive Patent acquisitions are changing the landscape IPR lawsuits in wireless are proliferating and highly visible
Competition for IPR Assets Broadens
Diversified Technology Leaders Leading Wireless Companies Financial and IP-Focused Entities

Sampling of Wireless IPR Lawsuit Activity

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2011 InterDigital, Inc. All rights reserved.

Independent/Future-focused R&D Company


Unique Positioning InterDigital is an independent/future-focused R&D company focused on inventing the future of wireless communications creating fundamental technologies at the core of todays and tomorrows mobile devices, networks and services Technology IP and Licensing

ENVISION

LICENSE

INVENT

THE BUSINESS OF INVENTION

EVANGELIZE

PROTECT

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2011 InterDigital, Inc. All rights reserved.

Market Valuation of IPR Companies is Driven by Superior Performance


Stock prices are highly volatile
12-Month Stock Price Performance v. Peers

1. Source: Yahoo, Inc

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2011 InterDigital, Inc. All rights reserved.

Solid 3G License Base


Global 3G Handset Market Shares
Others
3% 3% 4% 5% 10% 13% 20%

(1)

8% 23% 5% 6%

Under License as of 12/31/2010

Not Under License as of 12/31/2010

Mixed

___________________________ Source: Strategy Analytics, Vendor Share: Global Handset Market by Technology, 3Q 2010. 3G includes UMTS and 3G CDMA. Market shares represent 3Q 2010. 1. LGs 3G license terminated on 12/31/2010 and has not yet been renewed.

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2011 InterDigital, Inc. All rights reserved.

Our Core Market Presents a Large, Growing Opportunity


Worldwide Handset Shipments
~130 M units
2,000
(M units)
2010 2014 CAGR 2G / 2.5G 3G 4G (1) Total (8%) 19% 87% 7%

Trends

4G Shipments
1,600

Projected 1.2 billion unit opportunity in 3G / 4G in 2015 Target is to license 100% of 3G market 4G represents an opportunity for potentially higher royalties Significant prospects in other connected devices (tablets, PCs, ereaders, etc.)

1,200

~435 M units

Licensing Opportunity

~1,050 M units

800

4G (1) 3G 2G / 2.5G

Largely Licensed
400

0
2009A 2010E 2011E 2012E 2013E 2014E 2015E
___________________________ Source: iSuppli Mobile Handset Q1 2011 Market Tracker. 1. Includes WiMAX and LTE.

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2011 InterDigital, Inc. All rights reserved.

A Strong Position in LTE


Number of InterDigital US Patents and Applications Declared to ETSI for E-UMTS (LTE) (By Year Declared to ETSI)
300

Number of InterDigital US Patents and Applications Declared to ETSI for UMTS (WCDMA) and E-UMTS (LTE) (Cumulative, by Year)
1000 750

200

500
100

250
0 2007 2008 2009 2010

0 2001 2004 2007 2008 2009 2010

UMTS (WCDMA)

E-UMTS (LTE)

We believe we have one of the leading patent portfolios in LTE technology Significantly bigger opportunity in LTE as more devices available (tablets, e-readers, etc.) LTE royalty rates expected to be higher

___________________________ 1. The data in the tables presented above reflect the U.S. (i) patents, (ii) non-provisional patent applications and (iii) provisional patent applications declared to the European Telecommunications Standards Institute (ETSI) for the UMTS (including UMTS/CDMA) (3G) and E-UMTS (LTE) projects, as applicable, through October 27, 2010 by InterDigitals patent holding subsidiaries. 2. UMTS and E-UMTS stand for Universal Mobile Telecommunications System and Evolved Universal Mobile Telecommunications System, respectively. 3. Some patents and applications have been declared to ETSI by InterDigital for both UMTS and E-UMTS and therefore are included in both the UMTS and the E-UMTS data above. 4. The data above has been adjusted to reflect withdrawals of, and corrections made to, declarations of patents and applications as of October 27, 2010. 5. Certain of the patent and application data provided above by InterDigital may not correlate to the data available on the ETSI IPR Database as a result of differences in compiling, organizing and displaying declaration data. In addition, the patent and application data provided above may not be comparable to similar data provided by other third parties due to, among other things, differences in ETSI database search methodologies and applicable time periods. 6. The data in the tables above may include patents and applications that are directed to technology that is not, or may never be, deployed. 7. InterDigitals presentation of this data is not a statement of the essentiality of the patents and applications referred to herein, nor is this data a substitute for an independent evaluation of essentiality.

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2011 InterDigital, Inc. All rights reserved.

Positioned to Benefit from Next-Generation Networks


Ubiquitous Connectivity Billions of subscribers Trillions of connections Seamlessly connected and fully integrated

WiMax Relays WiFi

Sensors

Cellular
Ambiance

Femto

Mesh

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2011 InterDigital, Inc. All rights reserved.

Driving Value from our Investments


Significant leverage in model Continuous strengthening of our patent portfolio creates opportunities to: Accelerate market penetration Increase licensing royalty rate Renewal provides opportunity to renegotiate terms to reflect recent investment Typically ~5 year agreements Breadth of portfolio reaches across an expanding range of wireless devices
___________________________ 1. Incremental royalties represent Net Present Value. Assumes patents licensed for 10 years to all unlicensed handset OEMs and 11% discount rate.

Increasing Royalty Rates Can Generate Significant Value for InterDigital


Royalty Rate Increase 0.05% 0.10% 0.15% 0.20% Indicative NPV of Incremental Handset Royalties(1) $600 million $1,200 million $1,800 million $2,400 million

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2011 InterDigital, Inc. All rights reserved.

Drivers of InterDigitals Success


Technology Vision
Demonstrated success in identifying next generation technology needs Delivering innovation that solves fundamental problems Instrumental role in development of wireless standards

Standards Success

Standards incorporation enables InterDigital to license technology that is used in every cellular wireless device Extensive licensing expertise, with 80% of 2G and 50% of 3G mobile device markets licensed at YE 10 ~18,500 issued and pending patents as of 12/31/2010 Financial strength enables us to build portfolio both organically and through acquisitions Investment targeted at driving both new and renewed license agreements at higher royalty rates

Patent Portfolio Management

Sustainable Model

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2011 InterDigital, Inc. All rights reserved.

QUESTIONS AND ANSWERS

2011 Annual Meeting of Shareholders


2011 InterDigital, Inc. All rights reserved.

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