December 4, 2003

News Release: Transmeta Efficeon Processor Chosen by HP for Blade PC in New Consolidated Client Infrastructure; HP Consolidated Client Infrastructure to Reduce Enterprise IT Costs

Transmeta Corporation (Nasdaq:TMTA), the leader in efficient computing, today announced that its new Efficeon(TM) processor will be used in a new enterprise computing model from HP. This new computing model consolidates desktop computing and networked resources into easily manageable, highly secure datacenters that can deliver dramatically lower TCO without compromising desktop performance or the end-user experience. The new HP Consolidated Client Infrastructure (CCI) consists of an access device -- an HP thin client, powered by a Transmeta's Crusoe(R) processor -- that connects with the HP Blade PC, powered by Transmeta's new Efficeon processor running Microsoft Windows(R) XP Professional, located in a centralized data center. Blades are dynamically allocated to only one user at a time, providing a truly individual computing experience.

Enterprise IT managers who use Efficeon-powered Blade PCs will enjoy a centralized and easy-to-manage solution that offers numerous benefits such as increased compliance with software licensing requirements, cost-savings by reducing the likelihood of virus penetration, reduced power consumption with the Efficeon's energy efficient design, much simpler 'moves, adds and changes'and a reduced risk of data and equipment theft. Overall, HP's CCI can cut IT total cost of ownership by at least 50% and reduces PC support costs by upwards of 70% according to estimates from HP.

Transmeta processors offer a compelling cost-effective solution that enhances the end-user experience. The Efficeon-based HP Blade PC can cut costs in many ways, one of which is through its power efficiency. Not only does Efficeon reduce power consumption compared to many existing server designs, but the reduced thermal profile allows more processors to be deployed in a blade rack.

Additionally, the small footprint of HP's Crusoe-based thin clients requires minimal desk space, reducing clutter while its quiet fan-less operation contributes to a noise-free work environment. Since thin clients are easy to set up and use, new users can be deployed and start working in a minimal amount of time.

'IDC believes that the introduction of new high-performance Blade PC solutions paired with thin clients represent an important new direction for the thin client market,'said Bob O'Donnell, director, personal technology at IDC. 'Not only can these new solutions address the performance concerns of the IT managers, they can ultimately reduce the total cost of ownership and increase the return on investment.'

'We are proud to offer Efficeon processors for HP's new Blade PCs, augmenting HP's Crusoe powered thin clients and providing Transmeta processors for both ends of HP's Consolidated Client Infrastructure,' said Dr. Matthew R. Perry, president and CEO of Transmeta. 'The Efficeon processor's highly integrated architecture and energy efficient, high-performance characteristics make it an ideal choice for commercial computing applications.'

Several Transmeta Crusoe-based thin clients are currently shipping from HP. The HP t5000 series thin clients deliver desktop-like features and a level of performance that offers 'front-of-screen perception'comparable to full desktop system performance, all based upon Transmeta's proven energy-efficient processors.

'Transmeta's new generation Efficeon processor enables HP's Consolidated Client Infrastructure users with the best combination of performance and power efficiency for our new bx1000 Blade PC,'said Jeff Groudan, vice president of business desktop marketing, Personal Systems Group, HP. 'The unique thermal management and low voltage usage associated with Transmeta processors provide a highly reliable technology that is ideally suited for the Blade PC and thin client form factors, offering a high performance and affordable solution to HP customers.'

Featuring Transmeta Efficeon processors and the Microsoft Windows XP Professional operating system, the HP Blade PC is expected to be available in USA and Canada in the first quarter of 2004.

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

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. 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 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.

SOURCE: Transmeta Corporation

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