Transmeta and Eltan Announce Strategic Collaboration to Deliver Product Design Solutions Based on Efficeon and Crusoe Processors.

Business Editors/High-Tech Writers

SANTA CLARA, Calif. & DEN DUNGEN, Netherlands--(BUSINESS WIRE)--Feb. 16, 2004--

Cooperative Effort Speeds Efficient Computing Design Innovation

into Applications for Embedded and PC Design Markets

Transmeta Corporation (Nasdaq:TMTA), the leader in efficient computing, and Eltan, an advanced engineering services company based in The Netherlands, today announced a strategic collaboration to integrate Transmeta's high-performance, energy efficient processors into new solution designs.

This collaboration builds on Transmeta's growing network of strategic alliances with innovative reference design firms that are building new x86-compatible solutions based on Transmeta's Efficeon(TM), Crusoe(R) and Crusoe SE processors for the PC, information appliance and embedded markets. Eltan and Transmeta have already engaged with customers to provide the design and development of innovative hardware and software solutions.

"Our relationship with Eltan expands our reach and value proposition in important markets, resulting in new product designs and enhanced customer support. This collaboration accelerates time-to-market and reduces development costs for embedded and PC system builders seeking to bring the value of efficient computing to their customers," said Dr. Matthew R. Perry, president and CEO of Transmeta Corporation.

"We are very pleased to establish this close design collaboration. Transmeta's processors create exciting opportunities for new designs that enhance the performance, energy-efficiency and affordability of PCs, information appliances, UPCs and embedded systems," said Gerard Duynisveld, president of Eltan. "We have already developed a new design in the Ultra Personal Computer space using the Transmeta Crusoe processor that began shipping late last year. Additionally, Eltan is already working with other customers to bring new and innovative designs to market based on both the Efficeon and Crusoe processor families."

Eltan is a recognized leader in development, engineering and customization services for customer-specific hardware, software and BIOS designs that reduce support costs and add value for suppliers and end-users. The company has extensive experience and a close partnership with Phoenix Technologies, a global leader in core system software and BIOS technology. Phoenix is also a leading technology partner of Transmeta.

"The combination of Transmeta's x86-compatible processors, Phoenix Core System Software and Eltan's embedded design innovations and expertise represents a tremendous value proposition for the marketplace," said Albert E. Sisto, chairman, president and CEO of Phoenix Technologies. "The Transmeta and Eltan partnership builds upon our strong relationship with both companies and aligns with the Phoenix Trusted Partner Network strategy to deliver advanced solutions to customers."

About Eltan

Eltan is an advanced engineering services company specializing in (embedded) PC and Communication Technology, hardware design, BIOS, drivers, operating systems, as well as complete system solutions. Since its inception, Eltan has been an independent engineering company for Phoenix BIOS implementation. Eltan has an impressive list of satisfied customers across Europe, Middle East, India, Africa and the US, and the technical experience and short communication channels to establish long-term relations with satisfied customers. For more information on Eltan, visit www.eltan.com.

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 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. We announced our first Crusoe family of processors in 2000, and we introduced our new Efficeon family of processors in October 2003. 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 recent reports on Forms 8-K, 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.