Transmeta Crusoe Processor Chosen for Fujitsu Siemens Computers' Thin Client; Design Win Strengthens Transmeta's Position in Rapidly Growing Thin Client Market

Business Wire, July 12, 2004

SANTA CLARA, Calif. -- Transmeta Corporation (Nasdaq:TMTA), the leader in efficient computing, today announced that the company's energy efficient Crusoe(R) processor has been chosen for the new FUTRO S thin client series from Fujitsu Siemens Computers. This new thin client product line expands Transmeta's portfolio of key design wins with industry leading companies in the high-growth thin client market.

The thin client, differentiated from desktop computers by a smaller form factor and the removal of all moving parts including a disk drive and fans, is designed specifically for server-based computing. Thin clients used in conjunction with blade servers allow IT managers to provide enhanced security, space savings and support, allowing them to focus on allocated PC resources. This centralized approach provides IT managers with the ability to easily deploy applications and critical upgrades to thousands of enterprise computer users while enhancing protection from the catastrophes, viruses, and data theft that plague non-centralized operations.

The Transmeta Crusoe processor family is well suited for thin clients, as they enhance thin client energy efficiency without compromising performance, allowing for fanless, small form factor designs with exceptional responsiveness. With the combination of the thin client and blade system architecture, users receive desktop-like performance for typical day-to-day applications including email, internet browsing and all standard office applications in a quiet, reduced footprint device on the desktop.

"Transmeta is a leader in energy efficient processor technology for thin clients," said Andreas Thimmel, Vice President, Business Clients, Fujitsu Siemens Computers. "The FUTRO S represents an opportunity for customers to obtain a balance of exceptional performance and power savings, and associated IT cost reductions when implemented across an organization."

The Fujitsu Siemens Computers thin client runs embedded Linux NG or the Microsoft Windows XP Embedded operating system, an exceptional fit for devices requiring optimum functionality, high performance and reliability in a reduced memory footprint. The ability to run the Windows XP Embedded operating system in the FUTRO S highlights the advantages provided by Transmeta's X86-compatible processors compared to competitive offerings.

"Transmeta continues to secure wins in the thin client market, and this new product from Fujitsu Siemens Computers further validates our technological advantages in this space," said Arthur L. Swift, senior vice president of marketing, Transmeta Corporation. "Our company has targeted this market segment because it is an exceptional match for our technology and a high growth area as IT organizations are looking to reduce Total Cost of Ownership without sacrificing productivity."

The FUTRO S is available now, weighs just 3.3 lbs and features an internal power supply. In addition to the Crusoe processor, it has 256MB DDR RAM PCI slot expandability, and 32, 128, or 256 MB Flash ROM standard. The product supports PS/2 or USB devices, local and network printers and VGA-type video output. With its fanless operation and lack of rotating drives, the FUTRO S benefits from better reliability, silent operation and a long product life cycle.

Transmeta's energy efficient Crusoe and Efficeon(TM) processor families are available across a broad spectrum of performance and price points to meet the requirements of a wide range of innovative embedded, mobile and desktop computer systems. Products based on the company's processors have won major awards throughout the world.

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(R) 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 most recent reports on Forms 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.