Transmeta Announces Patent Infringement Lawsuit Against Intel Corporation.

SANTA CLARA, Calif. -- Transmeta Corporation (NASDAQ:TMTA), the leader in efficient computing technologies, today announced that it has filed a lawsuit against Intel Corporation in the United States District Court for the District of Delaware for infringement of ten Transmeta U.S. patents covering computer architecture and power efficiency technologies.

The complaint charges that Intel has infringed and is infringing Transmeta's patents by making and selling a variety of microprocessor products including at least Intel's Pentium III, Pentium 4, Pentium M, Core and Core 2 product lines. The complaint requests an injunction against Intel's continuing sales of infringing products as well as monetary damages, including reasonable royalties on infringing products, treble damages and attorneys' fees.

"Transmeta has developed a strong portfolio of intellectual property rights to capture and protect our proud legacy of developing advanced computing and microprocessor technologies," said John O'Hara Horsley, executive vice president and general counsel at Transmeta. "Intel has acknowledged that Transmeta has been an innovative spur to some of Intel's own development efforts, roadmap decisions and new product successes. At the same time, Intel has practiced multiple Transmeta inventions in its major microprocessor product lines. After endeavoring to negotiate with Intel for fair compensation for the continued use of our intellectual property, we have concluded that we must turn to the judicial system to be fairly compensated for our inventions."

"Transmeta's commitment to technological innovation has yielded highly valuable intellectual property. As a part of our business decision last year to increasingly focus on monetizing our IP through technology licensing, we understood that in some cases we might need to pursue enforcement through the courts," said Arthur L. Swift, president and CEO of Transmeta. "We believe that the action we have taken today is an appropriate step to return value to our stockholders from our investments over the past decade."

About Transmeta Corporation

Transmeta Corporation develops and licenses innovative computing, microprocessor and semiconductor technologies and related intellectual property. Founded in 1995, we first became known for designing, developing and selling our highly efficient x86-compatible software-based microprocessors, which deliver a balance of low power consumption, high performance, low cost and small size suited for diverse computing platforms. We now also provide, through strategic alliances and under contract, engineering services that leverage our microprocessor design and development capabilities. In addition to our microprocessor product and services businesses, we also develop and license 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, specific conditions and volatility in the markets that we address, the risk that we might not successfully negotiate any additional agreements to provide engineering services, the potential loss of key technical and business personnel, practical challenges in modifying our business model, our ability to satisfy the continued listing requirements of the Nasdaq Stock Market, the adoption and market acceptance of our products and technologies by current and potential customers and licensees, our inability to predict or ensure that third parties will license our technologies or use our technologies to generate royalties, the rescheduling or cancellation of significant customer orders, difficulties in developing or manufacturing our 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, the ability to enter strategic collaborations or raise financing on satisfactory terms, 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, 10-Q and 8-K, 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.

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