Transmeta Enters Chinese Market with New Efficeon Powered Ultraportable Notebook from Amoi; Performance and Battery Life for Today's Demanding Mobile Lifestyle.

SANTA CLARA, Calif. & XIAMEN, China -- Transmeta Corporation (Nasdaq:TMTA) the leader in efficient computing, and Amoi Electronics Co., Ltd., a leading Chinese electronics manufacturer, announced the availability of the ultraportable Amoi NBPC V3 notebook powered by the Transmeta Efficeon(TM) processor, ushering in a new eon of efficient computing in China.

With the successful production of the NBPC V3, Amoi has broken new ground and expanded the boundaries of traditional notebook design by using Chinese independent research and development in addition to its high-quality manufacturing expertise. Additionally, Amoi engineers worked with the full support of Transmeta engineers from the local Shanghai office and U.S. headquarters resulting in the first notebook that has been designed and manufactured by Amoi in China.

The high performance Efficeon processor and the small, lightweight, silent operation of the Amoi V3 offers users a quiet computing experience, with enough performance to run today's most demanding applications. The magnalium (magnesium/aluminum) case enables increased strength and durability, and utilizing the low-power Efficeon TM8600 processor enables the Amoi V3 to run up to two and a half hours on a standard battery and up to five hours on the extended battery.

"After an extensive search for the ideal processor, it became evident that the high-performance and energy-efficient characteristics of Efficeon were perfectly suited for the development of the Amoi NBPC V3," said Yale Guan, general manager of the IT Division at Amoi Electronics, Co. Ltd. "In addition, Efficeon enabled Amoi to develop the quintessential ultraportable notebook for today's fast-paced, mobile lifestyle in a sleek, affordable package."

The V3 features an impressive array of integral connectivity features for an ultraportable notebook weighing in at less than three pounds; the Amoi V3 is geared toward on-the-go users who require an attractive, lightweight and high-performance device for business and entertainment use anytime, anywhere.

"We are excited that our Efficeon processor has been selected as the core of the Amoi V3 -- a very timely and much anticipated product for the Chinese market," said Matthew R. Perry, president and CEO at Transmeta Corporation. "Through this launch, Transmeta begins a new long term relationship with Amoi, strengthens its presence in China and continues to expand into new high-growth global markets with best-in-class technology for efficient notebook computing."

Specifications

--Transmeta 130nm Efficeon TM8600 1.0GHz processor with fully integrated Northbridge

--ULI M1563 Southbridge with HyperTransport I/O 

--32MB ATI MOBILITY RADEON graphics controller

--10.6" WXGA LCD with 1280 x 768 native resolution

--Choice of 30GB or 40GB hard drive

--Choice of 256MB or 512MB DDR SDRAM

--2 USB 2.0 ports

--IEEE 1394 port

--PCMCIA A Type II slot

--V.92 MDC modem

--10/100Base-T LAN and 802.11b/g WLAN 

--Small 270mm x 183mm x 25.5mm form factor design

--Light 1.20kg (approximately 2.65lbs) total weight, including standard battery and WLAN

Launch Event and Availability

The official V3 product launch will take place on August 28, 2004 at the Amoi IT Production Line facility in Xiamen City, China. The V3 is available immediately in China.

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 Amoi Electronics Co., Ltd.

Amoi Electronics Co., Ltd was incorporated in May 1997 on the foundation of Xiamen Solid Electronics Limited, a Joint Venture which can trace its roots back as early as 1981. In June 1997, Amoi became a public company when it listed on the Shanghai Stock Exchange (SWAP code: 600057). Today, the registered capital of Amoi is CNY 429,800,000 (approx. US $52,000,000) and its total asset is CNY 3,824,000,000 (approx. US $462,000,000). As a technology driven international electronic corporation, Amoi has stepped into an extensive range of products, including mobile communication, consumer audio and video as well as computers. Technology for different life and better life is what Amoi is all about.

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.