Transmeta's Energy Efficient Processor Enables Innovative HP Compaq Thin Client t5700.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 21, 2003

Transmeta Corporation (Nasdaq:TMTA), the leader in efficient computing, today announced that its 1 GHz Crusoe TM5800 processor has been incorporated in the HP Compaq Thin Client t5700. Transmeta's energy efficient processor technology enables a high performance thin client that operates at about twice the megahertz of competitive products, while requiring only about half the device size.

"HP's thin client is an exceptional example of Transmeta's view of efficient computing and shows the capability of our technology to rapidly move into new markets," said Arthur L. Swift, senior vice president of marketing, Transmeta Corporation. "HP, the company known for innovation, has improved the thin client category by creating a smaller-sized product with great performance characteristics."

With Transmeta's 1 GHz Crusoe processor and up to 512 MB of DDR SDRAM, the HP Compaq Thin Client t5700 provides fast operation of local applications and enables demanding requirements, such as multimedia functionality. The t5700 also offers legacy support to fit into any environment. The PCI slot capability gives customers a broader selection of options than PCMCIA cards and the Microsoft(R) Windows(R) XP Embedded operating system provides very high flexibility for enterprise customers requiring expanded hardware and application support.

"HP offers customers an affordable enterprise-quality thin client solution utilizing Transmeta's efficient processor technology," said Tad Bodeman, director, Thin Client and Software Marketing, HP Personal Systems Group. "The HP Thin Client t5700 brings powerful, desktop-like performance and world class manageability through reliable and consistent products that are easy to purchase, deploy and manage in dynamic enterprise environments."

"IDC projects solid growth in the thin client market with a forecast of 2.1 million units for 2004 and 2.6 million units for 2005," said Bob O'Donnell, analyst, IDC. "New component technology, including high performance microprocessors, will enable new hardware designs to help drive this growth."

Transmeta's high-performance processors can enable thin clients with 'front of screen perception' performance, comparable to a desktop for enterprise applications, that IT managers require today. Because they operate at 1 GHz, about twice that of competing products in this space, Transmeta's processors are an exceptional option for thin client manufacturers who want to meet enterprise customers' demanding performance specifications.

About Transmeta Corporation

Transmeta Corporation develops and sells software-based microprocessors and develops additional hardware, software and system technologies that enable manufacturers to build highly efficient computing systems characterized by low power consumption, reduced heat dissipation and the high performance required to run standard x86 compatible programs. We originally developed our family of Crusoe microprocessors for lightweight notebook computers and other mobile computing devices, but we have developed and are continuing to develop microprocessors suitable for a variety of existing and emerging end markets in which x86 program compatibility and energy and thermal efficiency are desirable. To learn more about Transmeta, visit www.transmeta.com.

Note to Editors: Transmeta and Crusoe are trademarks of Transmeta Corporation. Microsoft and Windows are U.S. registered trademarks of Microsoft Corp. All other product or service names mentioned herein are the trademarks of their respective owners.

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