Transmeta Named as a Microsoft Smart Display Reference Design Partner.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 6, 2003

Transmeta Corporation (Nasdaq:TMTA), the leader in efficient computing, today announced that the company has been designated by Microsoft Corp. as a reference design partner for the next generation of Smart Displays. This designation reflects the value of Transmeta's energy efficient processor technology for Smart Displays running Microsoft(R) Windows(R) CE .NET and reinforces the very high performance capabilities of these processors for demanding applications.

Smart Displays are wireless, touch screen monitors that allow users to access Microsoft Windows XP-based PCs from remote locations in the home or office. In so doing, Smart Displays enable convenient, extended access to the information, applications and services of the main PC. These devices interface with PCs from up to approximately 100 feet away via an 802.11b wireless connection.

"Smart Displays can serve as a productive business tool by offering the corporate environment an innovative means of remotely accessing the full capabilities of the PC," said Bob O'Donnell, analyst, IDC. "Bringing higher performance processors into Smart Displays, as with PCs, is an important step in driving this market forward."

The high performance of Transmeta's processors is a key benefit for demanding requirements such as DVD quality multimedia playback and cool running Transmeta processors enable thin-and-light designs. Transmeta's unique capability to accomplish software MPEG-2/4 and Windows Media Video 8/9 decode provides significant efficient computing benefits to system designers, eliminating the need for a separate component for decode, saving board space and cost.

"Smart Displays represent an important evolution in personal computing and Microsoft, Transmeta and many other industry leading companies are backing the proliferation of this emerging category," said Aubrey Edwards, director of marketing, Embedded and Appliance Platform Group, Microsoft Corp. "Transmeta's energy efficient processors provide a solid platform with high performance and good power management enabling original equipment manufacturers to build innovative Smart Displays."

"Transmeta's processors offer the best available performance for Smart Displays, with about twice the megahertz of current competitive offerings," said Arthur L. Swift, senior vice president of marketing, Transmeta Corporation. "Our LongRun power management technology is instrumental in providing very high performance on-demand, while efficiently managing processor power to maximize battery life for wireless devices like Smart Displays."

Microsoft designated Transmeta a Smart Displays reference platform partner after original equipment manufacturer customers expressed interest in developing for the Transmeta processor architecture. This resulted in collaboration between Transmeta and Microsoft and testing of Transmeta's processors for use in Smart Displays.

Smart Displays are already available from display and computer manufacturers and more are in development for release in 2003 and beyond.

Transmeta and Microsoft have collaborated on several projects in recent years. In August 2002, Microsoft certified Transmeta's processors for the Windows CE .NET operating system, enabling new opportunities for Transmeta in mobile and embedded markets. The companies also collaborated on the development of Microsoft's innovative Tablet PC platform, the basis of the next evolution in notebook computing.

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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