Transmeta's Efficeon Processor Enables Compact, High Performance JM-net Blade Server.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 5, 2004

Transmeta Corporation (Nasdaq:TMTA), the leader in efficient computing, today announced that Japan-based JM-net, Inc. will ship a high performance and power efficient blade server in Japan and Asia based on Transmeta's Efficeon(TM) processor.

JM-net's EC86S blade server, for data center and grid computing environments, utilizes Transmeta's Efficeon to provide a compact system design with minimal heat dissipation. This allows excellent performance, per watt, per unit of space. This metric is critical for datacenters, which often face real estate and system cooling expenses that exceed system costs.

"We evaluated several potential processors for this blade server, and the Efficeon processor best suited the design and performance requirements of this very compact system," said Kazou Ueki, president of JM-net, Inc. "Transmeta's technology is very well suited for the blade server space, particularly in the way it helps reduce the total cost of system ownership for end customers."

The 19-inch 3U JM-net device is scheduled to begin shipping in May and accommodates 12 blades with 12 Efficeon processors. Additional system features for each blade include:

-- L1/L2 Cache: 192KB (128KB+64KB) /1MB

-- Main Memory: DDR SDRAM 256MB (max.1GB, ECC supported)

-- Network: 10 Base-T / 100Base-TX

-- Disk Capacity: 20GB (IDE)

-- Interface: 1-slot PCI bus, conforming to PCI 2.2, mounted on

each node

-- OS: Linux or Microsoft(R) Windows(R) XP

-- Certified Specifications: FCC Class A, VCCI Class A, CE

EN5501, 55022, CB

-- Fully tolerant power source for high reliability

"JM-net's blade server highlights the capability of the Efficeon processor to combine high performance with energy efficiency to create high compute density in a small, fanless blade," said Arthur L. Swift, senior vice president of marketing, Transmeta Corporation.

JM-net's EC86S blade server will be available in Japan and Asia through direct sales and via resellers. The initial system pricing starts at approximately US$1,800. Initial pricing does not include operating system or optional configurations for the hard drive and system memory.

About the Transmeta Efficeon Processor

The Transmeta Efficeon processor is designed to provide power efficiency, design flexibility, performance-on-demand and low cost to meet the need of the next generation of mobile, wireless, and embedded devices. It includes three new high performance bus interfaces: an on-chip HyperTransport(TM) bus interface for increased input/output efficiency, an on-chip Double Data Rate (DDR) SDRAM memory interface for increased throughput, and an on-chip AGP graphics interface for high performance graphics solutions. These new interfaces allow Efficeon to achieve more work per clock, which results in greater energy efficiency and longer battery life for mobile computer users. The Transmeta Efficeon processor's dynamic LongRun(R) power management features and integrated architecture are designed to give system designers and marketers a wide range of choices in creating products that deliver added value, functionality, security, comfort, reliability, and cost savings to end users.

About Transmeta Corporation

Founded in 1995, Transmeta Corporation designs, develops and sells highly efficient x86-compatible software-based microprocessors that deliver a compelling balance of low power consumption, high performance, low cost and small size. Our products are valuable for diverse computing platforms demanding energy efficiency, low heat and x86 software compatibility. We also develop advanced power management technologies for controlling leakage and increasing power efficiency in semiconductor and computing devices.

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

Safe Harbor Statement

This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements speak only as of the date of this release, and we will not necessarily provide updates of our projections or other forward-looking statements. Investors are cautioned that such forward-looking statements are subject to many risks and uncertainties, and may differ materially or adversely from our actual results or future events. Important risk factors that could have material or adverse effects on our results include general economic and political conditions and specific conditions and volatility in the markets that we address, the rescheduling or cancellation of significant customer orders, market acceptance and adoption of our new products by our present and future customers and end users, difficulties in developing or manufacturing new and existing products in a timely and cost effective manner, our dependence on third parties for sourcing materials and providing manufacturing services, intense competition and competitive pressures, patents and other intellectual property rights, and other risk factors. We urge investors to review our filings with the Securities and Exchange Commission, including our most recent reports on Forms 10-K and 10-Q, which describe these and other important risk factors that could have an adverse effect on our results. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.

Transmeta, Efficeon, LongRun, LongRun2, Code Morphing and Crusoe are trademarks of Transmeta Corporation. All other product or service names mentioned herein are the trademarks of their respective owners.