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<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                 --------------
                                    FORM 8-K
                                  -------------

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                                OCTOBER 22, 2003
                DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED)

                                  ------------

                           ACACIA RESEARCH CORPORATION
             (Exact name of Registrant as specified in its Charter)


         Delaware                     000-26068                 95-4405754
         --------                     ---------                 ----------
(State or Other Jurisdiction         (Commission               (I.R.S. Employer
       of Incorporation)             File Number)            Identification No.)


                            500 Newport Center Drive,
                         Newport Beach, California 92660
                    (Address of Principal Executive Offices)


                                 (949) 480-8300
               Registrant's telephone number, including area code


                                 Not Applicable
          (Former Name or Former Address, if Changed since Last Report)

<PAGE>

ITEM 7.  EXHIBITS.

         (c)      Exhibits.

                  99.1     Press Release dated October 22, 2003 of the
                           Registrant.


ITEM 12. DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

         On October 22, 2003, Acacia Research Corporation issued a press release
announcing its earnings for the quarter ended September 30, 2003. A copy of that
release is furnished as Exhibit 99.1 to this report.

         The information in this Current Report on Form 8-K is being furnished
and shall not be deemed "filed" for the purposes of Section 18 of the Securities
Exchange Act of 1934, as amended, or otherwise subject to the liabilities of
that Section. The information in this Current Report shall not be incorporated
by reference into any registration statement or other document pursuant to the
Securities Act of 1933, as amended.



                                   SIGNATURES


         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.


                                   ACACIA RESEARCH CORPORATION


Date:  October 22, 2003            By:  /s/ Paul R. Ryan
                                   -------------------------------------------
                                   Name: Paul R. Ryan
                                   Title: Chairman and Chief Executive Officer

                                       -2-
<PAGE>

                                  Exhibit Index




Exhibit Number          Description
--------------          -----------

   99.1                 Press Release dated October 22, 2003, of the Registrant.

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>acacia_8kex99-1.txt
<TEXT>
<PAGE>

EXHIBIT 99.1


[ACACIA RESEARCH CORPORATION LOGO]
                                                           CONTACTS: Rob Stewart
                                                              Investor Relations
FOR RELEASE                                                   Tel (949) 480-8300
-----------                                                   Fax (949) 480-8301
October 22, 2003


                             ACACIA RESEARCH REPORTS
                              THIRD QUARTER RESULTS


         Newport Beach, Calif. - (BUSINESS WIRE) - October 22, 2003 - Acacia
Research Corporation (Nasdaq: ACTG; CBMX) today reported results for the three
months ended September 30, 2003. Acacia Research Corporation comprises two
operating groups, the Acacia Technologies group and the CombiMatrix group.

         "The Acacia Technologies group entered into 16 new licensing agreements
for its Digital Media Transmission technology and recognized $186,000 of
licensing revenues during the quarter, which did not include third quarter
license fees due from a number of licensees, which will be recognized as
revenues when received in the fourth quarter. We entered into 12 additional
licensing agreements in the three weeks since the end of the third quarter and
estimate annualized revenues to be between approximately $1.1 million and $1.5
million from licensing agreements executed to date, based on information
provided by our licensees," commented Chairman and CEO, Paul Ryan.

         "The CombiMatrix group progressed in its strategic alliances with Roche
and Toppan in the development of its microarray products and expanded its drug
discovery, diagnostics and nanomaterials initiatives with new alliances and
collaborations. During the third quarter the CombiMatrix group recognized
revenues of $181,000 and also received $3,141,000 in payments from Roche, which
were recorded as deferred revenues, bringing total cash payments received from
Roche since the inception of our strategic alliance to $26,444,000," stated
CombiMatrix CEO and President, Dr. Amit Kumar.


ACACIA RESEARCH CORPORATION CONSOLIDATED

FINANCIAL RESULTS

         Consolidated revenues for the third quarter of 2003 were $367,000
versus $179,000 in the comparable 2002 period. Third quarter 2003 revenues were
primarily comprised of Digital Media Transmission ("DMT") license fees
recognized by the Acacia Technologies group and revenue recognized by the
CombiMatrix group related to the sale of a DNA microarray synthesizer to the
Nihon Gene Research Laboratory ("NGRL") and service and maintenance contract
revenue recognized related to a DNA microarray synthesizer system sold to Keio
University School of Medicine.

         The third quarter 2003 consolidated net loss was $5,832,000 versus
$20,622,000 in the comparable 2002 period. The third quarter 2003 consolidated
loss from operations before minority interests was $5,832,000 versus $34,502,000
in the comparable 2002 period. The third quarter 2002 consolidated net loss
included legal settlement charges totaling $18,471,000, primarily comprised of a
non-cash charge for the fair value of CombiMatrix Corporation common shares
issued pursuant to the terms of the related settlement agreement. The third
quarter 2002 consolidated net loss also included a non-cash impairment charge
totaling $2,748,000 related to a decline in fair value of a cost-method
investment.

<PAGE>

         Included in the third quarter 2003 consolidated net loss are non-cash
charges totaling $1,417,000, comprised of non-cash stock compensation
amortization charges of $664,000, non-cash patent amortization charges of
$399,000 and depreciation charges totaling $354,000. Non-cash stock compensation
amortization charges, non-cash patent amortization charges and depreciation
charges totaled $2,016,000, $550,000 and $429,000, respectively, in the
comparable 2002 period.

         Consolidated research and development expenses, comprised of costs
incurred by the CombiMatrix group, decreased to $1,726,000 from $6,449,000 in
the comparable 2002 period, primarily due to the CombiMatrix group's completion
of several research and development projects in the third and fourth quarters of
2002 pursuant to its agreements with Roche Diagnostics, GmbH ("Roche"),
resulting in a reduction of related research and development expenses during
2003, as compared to 2002.

         Consolidated marketing, general and administrative expenses decreased
to $3,675,000 from $4,727,000 in the comparable 2002 period, primarily due to a
reduction in professional fees related to Acacia Research Corporation's
recapitalization and merger transactions completed in December 2002, a reduction
in corporate legal expenses, and a reduction in overhead due to reduced general
and administrative personnel compared to the prior year quarter. The decrease
was partially offset by an increase in costs related to Acacia Technologies
group's ongoing DMT patent commercialization and enforcement efforts, including
increased legal and engineering costs related to new patent claims and the
identification of additional potential licensees of our DMT technology.

         Minority interests in the net losses of subsidiaries decreased to zero
from $14,080,000 in the comparable 2002 period, due to Acacia Research
Corporation's acquisition of the remaining ownership interests in CombiMatrix
Corporation in December 2002 and in Advanced Material Sciences and CombiMatrix
KK in July 2003.

FINANCIAL CONDITION

         Total consolidated assets were $94,094,000 as of September 30, 2003
compared to $97,071,000 as of December 31, 2002. Cash and cash equivalents and
short-term investments on a consolidated basis totaled $53,559,000 as of
September 30, 2003 compared to $54,688,000 as of December 31, 2002.

         During the third quarter of 2003, CombiMatrix Corporation received
total cash payments of $3,151,000, consisting primarily of $2,500,000 related to
the completion of certain milestones and $641,000 related to the delivery of
prototype products and services pursuant to its agreements with Roche, which
have been recorded as deferred revenues. Total cash payments received from Roche
since the inception of our relationship in July 2001 total $26,444,000. Total
consolidated deferred revenues at September 30, 2003 were $20,782,000, comprised
of $19,222,000 for the CombiMatrix group and $1,560,000 for the Acacia
Technologies group.


ACACIA TECHNOLOGIES GROUP
(A DIVISION OF ACACIA RESEARCH CORPORATION)

FINANCIAL RESULTS

         DMT license fee revenues for the third quarter of 2003 were $186,000
versus $43,000 in the comparable 2002 period. Since November 2002, the Acacia
Technologies group has entered into 53 license agreements for its DMT
technology. Sixteen (16) of these license agreements were executed in the third
quarter of 2003. Subsequent to September 30, 2003, the Acacia Technologies group
entered into an additional 12 license agreements. All of the Acacia Technologies
group's DMT license agreements provide for recurring license fee payments to be
made by the respective licensees over the term of the licenses.

         The third quarter 2003 division net loss was $1,296,000 versus
$5,275,000 in the comparable 2002 period. Included in the third quarter 2003
division net loss are non-cash patent amortization charges totaling $125,000 and
depreciation charges totaling $28,000. Non-cash amortization of patents and
depreciation charges totaled $465,000 and $55,000, respectively, in the
comparable 2002 period. The third quarter 2002 division net loss also included a
non-cash impairment charge totaling $2,748,000 related to a decline in fair
value of a cost-method investment.

<PAGE>

         Marketing, general and administrative expenses decreased to $1,553,000
from $2,113,000 in the comparable 2002 period, primarily due to a reduction in
professional fees related to Acacia Research Corporation's recapitalization and
merger transactions completed in December 2002, a reduction in corporate legal
expenses, and a reduction in overhead due to reduced general and administrative
personnel compared to the prior year quarter. The decrease was partially offset
by an increase in costs related to Acacia Technologies group's ongoing DMT
patent commercialization and enforcement efforts, including increased legal and
engineering costs related to new patent claims and the identification of
additional potential licensees of our DMT technology.

FINANCIAL CONDITION

         Total assets for the Acacia Technologies group were $41,532,000 as of
September 30, 2003 compared to $47,212,000 as of December 31, 2002. Cash and
cash equivalents and short-term investments totaled $34,525,000 as of September
30, 2003 compared to $39,792,000 as of December 31, 2002.


COMBIMATRIX GROUP
(A DIVISION OF ACACIA RESEARCH CORPORATION)

FINANCIAL RESULTS

         Revenues for the third quarter of 2003 were $181,000 versus $136,000 in
the comparable 2002 period. Third quarter 2003 revenues primarily related to the
sale of a DNA microarray synthesizer to NGRL and service and maintenance
contract revenue recognized related to a DNA microarray synthesizer system sold
to Keio University School of Medicine.

         The third quarter 2003 division net loss was $4,536,000 versus
$15,347,000 in the comparable 2002 period. Included in the third quarter 2003
division net loss are non-cash charges totaling $1,264,000, comprised of
non-cash stock compensation amortization charges of $664,000, non-cash
amortization of patents totaling $274,000 and depreciation charges totaling
$326,000. Non-cash stock compensation amortization charges, non-cash
amortization of patents and depreciation charges totaled $2,016,000, $85,000 and
$374,000 respectively, in the comparable 2002 period. The third quarter 2002 net
loss included legal settlement charges totaling $18,471,000 related to
CombiMatrix Corporation's settlement with Nanogen, Inc. in September 2002.

         Research and development costs incurred by the CombiMatrix group
decreased to $1,726,000 from $6,449,000 in the comparable 2002 period, primarily
due to the CombiMatrix group's completion of several research and development
projects in the third and fourth quarters of 2002 pursuant to its agreements
with Roche, resulting in a reduction of related research and development
expenses during 2003, as compared to 2002.

         Marketing, general and administrative expenses decreased to $2,122,000
from $2,614,000 in the comparable 2002 period, primarily due to a decrease in
marketing costs, personnel costs and corporate legal expenses and a reduction in
professional fees related to Acacia Research Corporation's recapitalization and
merger transactions completed in December 2002.

         Minority interests in the net losses of subsidiaries decreased to zero
from $14,057,000 in the comparable 2002 period, due to Acacia Research
Corporation's acquisition of the remaining ownership interests in CombiMatrix
Corporation in December 2002 and in Advanced Material Sciences and CombiMatrix
KK in July 2003.

<PAGE>

FINANCIAL CONDITION

         Total assets for the CombiMatrix group were $52,721,000 as of September
30, 2003 compared to $49,973,000 as of December 31, 2002. Cash and cash
equivalents and short-term investments totaled $19,034,000 as of September 30,
2003 compared to $14,896,000 as of December 31, 2002.

         During the third quarter of 2003, CombiMatrix Corporation received
total cash payments of $3,151,000, consisting primarily of $2,500,000 related to
the completion of certain milestones and $641,000 related to the delivery of
prototype products and services pursuant to its agreements with Roche, which
have been recorded as deferred revenues. Total cash payments received from Roche
since the inception of our relationship in July 2001 total $26,444,000. Total
deferred revenues at September 30, 2003 were $19,222,000 for the CombiMatrix
group.


BUSINESS HIGHLIGHTS
-------------------

         Business highlights of the third quarter include:

         ACACIA TECHNOLOGIES GROUP:

         o        Since November 2002, the Acacia Technologies group has entered
                  into 53 license agreements for its DMT technology. Sixteen
                  (16) of these license agreements were executed in the third
                  quarter of 2003. Subsequent to September 30, 2003, the Acacia
                  Technologies group entered into an additional 12 license
                  agreements. Licensees include LodgeNet Entertainment
                  Corporation, the industry-leader for hotel video-on-demand,
                  Grupo Pegaso, a partner with Spain's Telefonica in Mexico's
                  second largest mobile telephony company, Virgin Radio, a
                  leading digital broadcast company, CinemaNow, Inc., a leading
                  Internet movie company and Internet Streaming Companies
                  including Interactive Gallery, Inc., a wholly owned subsidiary
                  of New Frontier Media, Inc., L.F.P., Inc. (owner of the
                  Hustler websites), Vivid Entertainment, LLC., and SBO
                  Pictures, Inc. d/b/a Wicked Pictures. All of the Acacia
                  Technologies group's DMT license agreements provide for
                  recurring license fee payments to be made by the respective
                  licensees over the term of the licenses.

         o        In September 2003, the Acacia Technologies group caused 42
                  websites owned by Go Entertainment, Inc. to be closed down.
                  The websites were continuing to utilize Acacia Technologies
                  group's DMT technology in violation of a court order. The U.S.
                  District Court for the Central District of California issued
                  an injunction prohibiting Go Entertainment from continuing to
                  use Acacia Technologies group's DMT technology without a
                  license. The Acacia Technologies group successfully enforced
                  the injunction against Go Entertainment's web hosting company.
                  On September 22, 2003, the Acacia Technologies group entered
                  into a license agreement for its DMT technology with Go
                  Entertainment, Inc.


         COMBIMATRIX GROUP:

         o        In August 2003, CombiMatrix launched siRNA Solutions(TM) which
                  partners its RNAi synthesis platform and custom microarray
                  technology with sophisticated bioinformatics to provide
                  collaborators and customers with a fully integrated program
                  for drug discovery. The CombiMatrix Corporation program is the
                  first to provide a fully integrated service based on a single
                  research platform for discovery and allows researchers to
                  design, synthesize, validate and reiterate gene silencing
                  experiments in days rather than months for any gene in any
                  organism. RNAi technologies are predicted to speed discovery
                  of drug development and significantly reduce costs for biotech
                  and pharmaceutical companies.

<PAGE>

         o        In August 2003, Dr. David L. Danley, Colonel (ret.) U.S. Army,
                  joined CombiMatrix Corporation as its Director, Homeland
                  Security and Defense Programs. Dr. Danley's responsibilities
                  will include all of CombiMatrix's defense related activities,
                  including the joint development of its proprietary products
                  for the detection of biological and chemical warfare agents.

         o        In September 2003, CombiMatrix initiated collaborations with
                  Drs. Daniel Sabath and Stephen Schmechel of the University of
                  Washington to develop a microarray-based test for the
                  diagnosis of lymphoma. University of Washington researchers
                  are developing sophisticated nucleic acid-based tests for
                  diagnosis of lymphoma using CombiMatrix Corporation's
                  customizable microarrays. In addition, CombiMatrix Corporation
                  has established a research and collaboration agreement with
                  Rational Diagnostics of Seattle, Washington for further
                  development and commercialization of lymphoma diagnostic
                  products.

         o        In September 2003, it was announced that CombiMatrix
                  Corporation and the Computational Biology Research Center
                  ("CBRC"), a division of the Japanese National Institute of
                  Advanced Industrial Science and Technology, developed a novel
                  method for the preparation and measurement of DNA methylation
                  in tissue biopsies. The technique uses CombiMatrix
                  Corporation's customizable microarrays for the detection of
                  methylation at any CpG dinucleotide position in DNA. In the
                  third quarter of 2003 the parties together entered into their
                  first license agreement with a third party in Japan with
                  respect to the use of this jointly developed technology.

         A conference call is scheduled for today at 1:30 p.m. Pacific Time
(4:30 p.m. Eastern). Paul R. Ryan, Chairman and CEO of Acacia Research
Corporation, Robert "Chip" Harris, President, and Amit Kumar, Ph.D., CEO and
President of CombiMatrix Corporation will host the call.

         To listen to the presentation by phone, dial (800) 915-4836 for
domestic callers and (973) 317-5319 for international callers. A replay of the
audio presentation will be available for 30 days at (800) 428-6051 for domestic
callers and (973) 709-2089 for international callers, both of whom will need to
enter the code 309899 when prompted.

         The call is being webcast by CCBN and can be accessed at Acacia
Research Corporation's website at www.acaciaresearch.com.


ABOUT ACACIA RESEARCH CORPORATION

Acacia Research Corporation comprises two operating groups, Acacia Technologies
group and CombiMatrix group.

The Acacia Technologies group licenses its DMT and V-Chip technologies to media
and electronics companies. The DMT technology covers the transmission and
receipt of digital audio and digital video content, commonly known as audio
on-demand, video on-demand, and audio/video streaming, and is supported by 5
U.S. and 17 international patents.


The CombiMatrix group is developing a platform technology to rapidly produce
customizable active biochips, which are semiconductor-based tools for use in
identifying and determining the roles of genes, gene mutations and proteins.
CombiMatrix's technology has a wide range of applications including DNA
synthesis/diagnostics, drug discovery, and immunochemical detection.
CombiMatrix's Express Track(sm) drug discovery program is a systems biology
approach, using its technology, to target common viral diseases with siRNA
compounds.

Acacia Research-Acacia Technologies (Nasdaq: ACTG) and Acacia
Research-CombiMatrix (Nasdaq:CBMX) are both classes of common stock issued by
Acacia Research Corporation and are intended to reflect the performance of the
respective operating groups and are not issued by the operating groups.

<PAGE>

Information about Acacia Research Corporation and the Acacia Technologies group
is available at www.acaciaresearch.com. Information about the CombiMatrix group
is available at www.combimatrix.com.


SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995:


THIS NEWS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE
"SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995. THESE STATEMENTS ARE BASED UPON OUR CURRENT EXPECTATIONS AND SPEAK ONLY AS
OF THE DATE HEREOF. OUR ACTUAL RESULTS MAY DIFFER MATERIALLY AND ADVERSELY FROM
THOSE EXPRESSED IN ANY FORWARD-LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS
AND UNCERTAINTIES, INCLUDING THE RECENT ECONOMIC SLOWDOWN AFFECTING TECHNOLOGY
COMPANIES, OUR ABILITY TO SUCCESSFULLY DEVELOP PRODUCTS, RAPID TECHNOLOGICAL
CHANGE IN OUR MARKETS, CHANGES IN DEMAND FOR OUR FUTURE PRODUCTS, LEGISLATIVE,
REGULATORY AND COMPETITIVE DEVELOPMENTS AND GENERAL ECONOMIC CONDITIONS. OUR
ANNUAL REPORT ON FORM 10-K, RECENT AND FORTHCOMING QUARTERLY REPORTS ON FORM
10-Q, RECENT CURRENT REPORTS ON FORMS 8-K AND 8-K/A, AND OTHER SEC FILINGS
DISCUSS SOME OF THE IMPORTANT RISK FACTORS THAT MAY AFFECT OUR BUSINESS, RESULTS
OF OPERATIONS AND FINANCIAL CONDITION. WE UNDERTAKE NO OBLIGATION TO REVISE OR
UPDATE PUBLICLY ANY FORWARD-LOOKING STATEMENTS FOR ANY REASON.

<PAGE>

                           ACACIA RESEARCH CORPORATION
                          SUMMARY FINANCIAL INFORMATION
             (IN THOUSANDS, EXCEPT SHARE AND PER SHARE INFORMATION)
                                   (UNAUDITED)

CONSOLIDATED BALANCE SHEET INFORMATION

                                  SEPTEMBER 30,      DECEMBER 31,
                                      2003              2002
                                      ----              ----

Total Assets                      $    94,094        $    97,071
                                  ============       ============
Total Liabilities                 $    27,974        $    19,041
                                  ============       ============
Minority Interests                $     1,130        $     2,171
                                  ============       ============
Total Stockholders' Equity        $    64,990        $    75,859
                                  ============       ============

<TABLE>
CONSOLIDATED STATEMENTS OF OPERATIONS
<CAPTION>

                                                                                 THREE MONTHS ENDED
                                                                           -------------------------------
                                                                           SEPTEMBER 30,     SEPTEMBER 30,
                                                                               2003              2002
                                                                           -------------     -------------
<S>                                                                        <C>               <C>
Revenues:
    License fee income ...............................................     $        186      $         43
    Product revenue ..................................................              171                23
    Grant and contract revenue .......................................               10               113
                                                                           -------------     -------------

    Total revenues ...................................................              367               179
                                                                           -------------     -------------

Operating expenses:
    Cost of sales ....................................................               17                 6
    Research and development expenses ................................            1,726             6,449
    Non-cash stock compensation expense - research and development ...              243               753
    Marketing, general and administrative expenses ...................            3,675             4,727
    Non-cash stock compensation expense - marketing,
       general and administrative ....................................              421             1,263
    Amortization of patents ..........................................              399               550
    Legal settlement charges .........................................               --            18,471
                                                                           -------------     -------------

       Total operating expenses ......................................            6,481            32,219
                                                                           -------------     -------------

       Operating loss ................................................           (6,114)          (32,040)
                                                                           -------------     -------------

Other income (expenses) ..............................................              212            (2,749)
                                                                           -------------     -------------

Loss from operations before income taxes and minority interests ......           (5,902)          (34,789)

Benefit for income taxes .............................................               70               287
                                                                           -------------     -------------

Loss from operations before minority interests .......................           (5,832)          (34,502)

Minority interests ...................................................               --            14,080
                                                                           -------------     -------------

Loss from continuing operations ......................................           (5,832)          (20,422)

Discontinued operations:
    Estimated loss on disposal of Soundbreak.com .....................               --              (200)
                                                                           -------------     -------------

Net loss .............................................................     $     (5,832)     $    (20,622)
                                                                           =============     =============

Loss per common share:
Attributable to the Acacia Technologies group:
    Net loss .........................................................     $     (1,296)     $     (5,275)
       Basic and diluted per share ...................................            (0.07)            (0.27)

Attributable to the CombiMatrix group:
    Net loss .........................................................     $     (4,536)     $    (15,347)
       Basic and diluted per share ...................................            (0.18)            (0.67)

Weighted average shares - basic and diluted:
    Acacia Research - Acacia Technologies stock ......................       19,645,949        19,640,808
                                                                           =============     =============
    Acacia Research - CombiMatrix stock ..............................       25,890,408        22,950,551
                                                                           =============     =============
</TABLE>

{Note: 2002 share and per-share information gives effect to Acacia Research
Corporation's recapitalization transaction as of January 1, 2002.}

<PAGE>

                            ACACIA TECHNOLOGIES GROUP
                   (A DIVISION OF ACACIA RESEARCH CORPORATION)
                          SUMMARY FINANCIAL INFORMATION
                                 (IN THOUSANDS)
                                   (UNAUDITED)

GROUP BALANCE SHEET INFORMATION

                                  SEPTEMBER 30,      DECEMBER 31,
                                      2003              2002
                                      ----              ----

Total Assets                      $    41,532        $    47,212
                                  ============       ============
Total Liabilities                 $     4,694        $     5,183
                                  ============       ============
Minority Interests                $     1,130        $     1,487
                                  ============       ============
Total Stockholders' Equity        $    35,708        $    40,542
                                  ============       ============


GROUP STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>

                                                              THREE MONTHS ENDED
                                                       -------------------------------
                                                       SEPTEMBER 30,     SEPTEMBER 30,
                                                           2003              2002
                                                       -------------     -------------
<S>                                                    <C>               <C>
Revenues:
  License fee income ...............................   $        186      $         43
                                                       -------------     -------------

    Total revenues .................................            186                43
                                                       -------------     -------------

Operating expenses:
  Marketing, general and administrative expenses ...            955             1,423
  Legal expenses - patents .........................            598               690
  Amortization of patents ..........................            125               465
                                                       -------------     -------------

    Total operating expenses .......................          1,678             2,578
                                                       -------------     -------------

    Operating loss .................................         (1,492)           (2,535)
                                                       -------------     -------------

Other income (expenses) ............................            160            (2,816)
                                                       -------------     -------------

Loss from continuing operations before
  income taxes and minority interests ..............         (1,332)           (5,351)

Benefit for income taxes ...........................             36               253
                                                       -------------     -------------

Loss from continuing operations before
  minority interests ...............................         (1,296)           (5,098)

Minority interests .................................             --                23
                                                       -------------     -------------

Loss from continuing operations ....................         (1,296)           (5,075)
Discontinued operations
  Estimated loss on disposal of Soundbreak.com .....             --              (200)
                                                       -------------     -------------

Division net loss ..................................   $     (1,296)     $     (5,275)
                                                       =============     =============
</TABLE>

<PAGE>

                                COMBIMATRIX GROUP
                   (A DIVISION OF ACACIA RESEARCH CORPORATION)
                          SUMMARY FINANCIAL INFORMATION
                                 (IN THOUSANDS)
                                   (UNAUDITED)

GROUP BALANCE SHEET INFORMATION

                                         SEPTEMBER 30,     DECEMBER 31,
                                             2003             2002
                                             ----             ----

Total Assets                             $    52,721      $    49,973
                                         ============     ============
Total Liabilities                        $    23,439      $    13,972
                                         ============     ============
Minority Interests                       $        --      $       684
                                         ============     ============
Total Stockholders' Equity               $    29,282      $    35,317
                                         ============     ============


<TABLE>
GROUP STATEMENTS OF OPERATIONS
<CAPTION>

                                                                          THREE MONTHS ENDED
                                                                    -------------------------------
                                                                    SEPTEMBER 30,     SEPTEMBER 30,
                                                                        2003              2002
                                                                    -------------     -------------
<S>                                                                 <C>               <C>
Revenues:
  Product revenue ............................................      $        171      $         23
  Grant and contract revenue .................................                10               113
                                                                    -------------     -------------

     Total revenues ..........................................               181               136
                                                                    -------------     -------------

Operating expenses:
  Cost of sales ..............................................                17                 6
  Research and development expenses ..........................             1,726             6,449
  Non-cash compensation expense - research and development ...               243               753
  Marketing, general and administrative expenses .............             2,122             2,614
  Non-cash compensation expense - marketing, general
     and administrative ......................................               421             1,263
  Amortization of patents ....................................               274                85
  Legal settlement charges ...................................                --            18,471
                                                                    -------------     -------------

     Total operating expenses ................................             4,803            29,641
                                                                    -------------     -------------

     Operating loss ..........................................            (4,622)          (29,505)
                                                                    -------------     -------------

Other income .................................................                52                67
                                                                    -------------     -------------

Loss from operations before income taxes
  and minority interests .....................................            (4,570)          (29,438)

Benefit for income taxes .....................................                34                34
                                                                    -------------     -------------

Loss from operations before minority interests ...............            (4,536)          (29,404)

Minority interests ...........................................                --            14,057
                                                                    -------------     -------------

Division net loss ............................................      $     (4,536)     $    (15,347)
                                                                    =============     =============
</TABLE>

</TEXT>
</DOCUMENT>
</SUBMISSION>
