Transmeta Releases Details on New Efficeon Processor Using 90nm Technology; Transmeta to Hold Public Demonstration of New Processor at 2 GHz.

SANTA CLARA, Calif. -- Transmeta Corporation (NASDAQ:TMTA), the leader in efficient computing, today formally announced details about its new 90-nanometer (90nm) Efficeon(TM) TM8800 processor. Details about the processor were revealed at In-Stat/MDR's Fall Processor Forum in San Jose, California.

The single chip Efficeon TM8800 is specified as featuring a high performance processor core capable of issuing up to eight internal instructions per clock, an integrated DDR-400 memory interface and an AGP-4X high-speed graphics interface. Connection to other chips is made through a high performance HyperTransport interface.

Using an industry-leading 90nm process technology, the new second generation Efficeon TM8800 processor achieves significantly improved speed and efficiency over the prior 130nm generation. Previously, the 130nm Efficeon TM8600 processor achieved 1 GHz speeds at a maximum power of 7 watts. With the new 90nm technology, the Efficeon TM8800 is expected to achieve comparable 1 GHz speeds using a mere 3 watts maximum power. The 1.6 GHz Efficeon TM8800 processor is already in limited production and shipping in Sharp's new PC-MP50G and PC-MP70G notebook computers in Japan. Transmeta will also demonstrate a technology preview of the new Efficeon TM8800 processor running at 2 GHz at the Fall Processor Forum.

"The 90nm Efficeon TM8800 provides a major boost in performance while maintaining the low power consumption needed for today's demanding devices and applications," said Matthew R. Perry, president and CEO of Transmeta Corporation.

The Efficeon TM8800 features AntiVirusNX(TM) technology and is the first low power x86-microprocessor to provide support for the anti-virus protection enabled in the currently available Microsoft Windows XP Service Pack 2 (SP2). The Efficeon TM8800 processor and future versions of the Efficeon processor will provide AntiVirusNX capability to protect against the execution of code from memory regions intended for data, when used in conjunction with the Data Execution Protection feature shipping from Microsoft in Windows XP SP2.

In addition, the next version of the Efficeon TM8800, which is scheduled for later this year, is expected to be the first low power x86-microprocessor to provide support for the new x86 instruction extensions for multimedia and video processing known as "SSE-3." The new SSE-3 instructions can improve performance for applications such as video decompression.

The 90nm TM8800 Efficeon is being manufactured at Fujitsu Electronic Devices Group's Akiruno Technology Center near Tokyo. Using Fujitsu's advanced 90nm CMOS semiconductor technology enables smaller die sizes and reduced manufacturing costs, as well as lower power and higher performance. Fujitsu's technology provides Efficeon with an industry leading transistor design capable of reaching 40-nm physical gate lengths and eight layers of high speed metal interconnect.

The Efficeon TM8800 is targeted at a wide range of computing devices such as thin-and-light notebook computers, mainstream notebooks, ultra-personal computers (UPCs), tablet PC's, BladePCs, cluster workstations and fanless media centers.

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, 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.

Transmeta, Efficeon, AntiVirusNX, 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.