NEWPORT BEACH, CA – Acacia Research Corporation today released its Fourth Quarter and Year End financial results after an earlier scheduled live teleconference call with investors.”Acacia Technologies group revenues for the year ended December 31, 2004 were $4,284,000, comprised of $2,784,000 in revenues from our Digital Media Transmission licensing program and the recognition of $1,500,000 in deferred revenues from our television V-chip licensing program. During the fourth quarter we reported $779,000 in licensing revenues from our DMT licensing program,” said Chairman and CEO Paul Ryan.

Ryan also reported that many of the new DMT licenses signed in the Fourth Quarter came from cable TV companies, not internet-based entertainment sites.

“We entered into 103 new licenses for our DMT technology in the fourth quarter, including 95 cable TV licenses. We signed an additional 9 licenses since the end of the quarter and have entered into 294 DMT technology licenses to date,” said Ryan.

Ryan said that future growth could come from new patents that the company had recently acquired.

“Our recent acquisition of rights to 27 patent portfolios will provide the Acacia Technologies group with the potential of multiple revenue streams from additional licensing programs in 2005,” said Ryan. “The $19.6 million in proceeds from the recent sale of stock brings our cash and short term investment position to approximately $43 million and will enable us to continue to acquire additional patent portfolios as we move toward our goal of becoming the leading technology licensing company.”

Acacia Technologies stock closed at 5.85 today, up 1.56% from the previous day’s close.

The Acacia Research Group made a splash in the adult entertainment business in 2003 when it first started to contact adult website operators with demands that they license its streaming media patent or face legal action. Acacia Vice President Rob Berman described adult website operators as “low-hanging fruit” when asked about the company’s unusual strategy. Some adult companies agreed to Acacia’s licensing terms, while others refused. Gregory Clayman, President of VS Media, Inc., and Spike Goldberg, President of New Destiny Video Group, the Internet Division of HomeGrown Video, contacted the prestigious law firm of Fish and Richardson and ultimately formed an industry Defense Group. The Defense Group is currently fighting Acacia’s patent claims in court.

For those who missed the live conference, a recording of the presentations will be available for 30 days at (888) 203-1112 for domestic callers and (719) 457-0820 for international callers. A confirmation code of 8768414 will be required when prompted.

For more information about Acacia Research Corporation, including the Acacia Technologies Group, visit www.acaciaresearch.com.