Transmeta Announces Embedded Design Win with IBASE Firewall/VPN Platform; Fast, Energy Efficient and Fan-less Firewall/VPN Platform for the Enterprise.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 19, 2003

Transmeta Corporation (Nasdaq:TMTA), the leader in efficient computing, today announced that the company's energy efficient processors are being incorporated by IBASE Technology Inc. in its FWA7000, a fast and fan-less Firewall/VPN platform.

Transmeta's processors, including the 800 MHz Crusoe TM5800, enable an operating speed for the IBASE product of up to 13 megabits per second (Mbps) of throughput, or 25 Mbps of internal throughput. This is about four times the VPN encryption speed of existing network security applications. Since the 802.11b bandwidth specification is 11 Mbps, the IBASE FWA7000's high performance level makes it ideal for use in 802.11b wireless local area network environments.

Designed for enterprise users, the IBASE FWA7000 maximizes efficiency by using Transmeta's LongRun power management technology to adjust voltage and clock frequency on demand, reducing overall power consumption.

"Transmeta's processor technology provides the best combination of performance, energy efficiency and price for this market segment," said C.S. Lin, president of IBASE. "We find that Transmeta's platform consistently runs cooler than competitive offerings, resulting in high reliability and a long product life span."

"This innovative product design from IBASE shows the benefits of Transmeta's processor technology for embedded applications requiring high performance and energy efficiency," said Arthur L. Swift, senior vice president of marketing, Transmeta Corporation. "We view Transmeta's ability to increase performance, while applying economical power management at competitive prices, as an important benefit to our customers."

IBASE FWA7000 Firewall/VPN Platform Features:

-- 800 MHz/533 MHz Transmeta Crusoe TM5800 processor

-- Aluminum compact mini-chassis

-- Four on-board Ethernet ports

-- Supports Disk On Module (DOM) via integrated IDE port

-- Low-power, fan-less solution

-- Programmable LED status

-- High performance Firewall/VPN platform

-- Worldwide availability

Based in Taipei, Taiwan, IBASE Technology was founded in 2000 by a group of experienced engineers from the IPC arena, and talented marketing and management staff sharing the same ideals and goals. The team has gained the respect and support of reputable and established companies that have forged strategic partnerships with IBASE. IBASE's research and development team is composed hardware and software engineers, 20% of whom have more than 14 years of experience and 80% of whom have more than eight years of experience in their respective fields. Current product offerings from IBASE include several Transmeta-based single board computers (SBCs), CompactPCI processor boards, ETX processor module, embedded little boards, industrial motherboards and many ODM custom designs. For more information, visit http://www.ibase.com.tw/.

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.

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

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.