Transmeta and Sony Group Renew Project Agreements for 2006.

SANTA CLARA, Calif. -- Transmeta Corporation (Nasdaq:TMTA), the leader in efficient computing technologies, today announced it has entered into a series of new project agreements for Transmeta to continue providing design and engineering services to Sony Computer Entertainment Inc. and Sony Corporation (collectively, the "Sony Group"). These agreements mark the second year of the two-year design services agreement between Transmeta and the Sony Group that was announced in March 2005. Transmeta's first set of project agreements with the Sony Group expired by their terms on March 31, 2006, corresponding to the Sony Group's fiscal year end.

The new project agreements provide for Transmeta to perform a variety of design and engineering services for the Sony Group over project periods ranging from three months to one year, ending March 31, 2007. Under the new project agreements, Transmeta initially will provide the services of more than 100 engineers in the second quarter of 2006 to work on advanced projects for Sony Group. Transmeta and the Sony Group are currently discussing additional potential engineering projects for Transmeta to perform for the Sony Group under the design services agreement.

"I am pleased with the excellent execution by our engineering team during the past year, and I am delighted that Sony is moving forward with us in their new fiscal year," commented Arthur L. Swift, president and CEO of Transmeta. "We continue to believe that Transmeta's low power expertise and advanced design capabilities can contribute strongly to Sony's strategy."

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 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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