Transmeta's Crusoe Microprocessor and Crusoe-Based Notebooks Drive Mobile Computing Innovation in 2001.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--Dec. 20, 2001

Transmeta Corp.'s (Nasdaq:TMTA) Crusoe microprocessor and Crusoe-based notebook computers won significant awards for innovation in mobile computing at all three major U.S. computer industry shows in 2001.

"Transmeta is enabling customers to bring innovative, energy efficient mobile computers to the marketplace," said Murray Goldman, chairman and chief executive officer, Transmeta Corp. "These multiple awards are independent recognition of the value to Crusoe technology and speak to the exceptional product designs and features created by our customers."

Major U.S. computer industry show awards in 2001 for the Crusoe microprocessor and Crusoe-based notebooks are as follows:

-- In November, the Crusoe-based Fujitsu LifeBook P Series notebook received
Best of Show honors for all products exhibited at Comdex in Las Vegas, after
being selected from seventeen finalists.

-- In June, Crusoe microprocessors were inside three of the four notebooks
recognized by CNET in the Best of Show category for all products at TECHXNY
(formerly PC Expo) in New York City. The Crusoe-based Fujitsu FMV-Biblo Loox T
won the overall Best of Show award and the Crusoe-based NEC Versa DayLite and
Casio Cassiopeia FIVA notebooks were also honored as finalists for the award.

-- In January, Transmeta's Crusoe processor was named as a Best of Show award
winner in the Innovations 2001 Computer Hardware and Software category at the
Consumer Electronics Show (CES) in Las Vegas.

The Crusoe microprocessor and Crusoe-based products also won several awards at major shows in Japan and Europe in 2001. Transmeta plans to attend all three major U.S. computer shows again in 2002, as well as others in the U.S., Japan and Europe.

About Transmeta

Transmeta is a publicly traded company located in Santa Clara. Transmeta develops and sells software-based microprocessors and develops additional hardware and software technologies that enable computer manufacturers to build computers that simultaneously offer long battery life, high performance and x86 compatibility. Transmeta's family of Crusoe microprocessors is targeted at the notebook and Internet appliance segments of the mobile Internet computer market, as well as ultra-dense servers and a range of embedded applications.

To learn more about Transmeta visit www.transmeta.com.

Cautionary Statement

This release contains forward-looking statements regarding future events or the future financial performance of the Company, which statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements are only predictions, which may differ materially from actual results or future events. All such forward-looking statements are based upon our current expectations but involve inherent risks and uncertainties. Such forward-looking statements speak only as of the date of this release, and the Company will not necessarily provide updates of its forward-looking projections or forecasts.

Risks and uncertainties that may have material effects on our future performance include general economic conditions, including the recent significant slowdown in the technology sector and semiconductor industry, the timing, rescheduling or cancellation of significant customer orders, potential fluctuations in our quarterly results, dependence on increasing demand for our Crusoe products, difficulties in developing or manufacturing new products in a timely and cost effective manner, market acceptance of our new products and of our customers' systems using our products, the growth of emerging markets that we are addressing, our customer concentration, the loss of revenue if a major customer were to cancel, reduce or delay a product order, inventory losses from a failure to forecast product demand accurately, our dependence on third parties for sourcing materials and providing manufacturing services, delays in product deliveries as we transition to smaller geometry process technologies, competition, rapid technological change, patents and intellectual property rights, volatility of our stock price, and the cyclical nature of the semiconductor market. We urge investors to review our regular filings with the Securities and Exchange Commission, including specifically our most recently filed Form 10-Q, which identify and describe these and other important risk factors that could cause our actual results to differ from those contained in these forward-looking statements.

Note to Editors: Transmeta and Crusoe are trademarks and/or registered trademarks of Transmeta Corp. in the United States and/or other countries. All other trademarks are the properties of their respective owners.