European Market Support with New Design Partners; Bolsters Opportunities for Innovative Embedded Platforms Business Editors

SANTA CLARA, Calif.--June 11, 2003--Transmeta Corporation (Nasdaq:TMTA), the leader in efficient computing, today announced that it has established strategic agreements with three highly respected, European-based design firms to support Transmeta's aggressive growth plans for the region.

The firms, IO Technologies, Marek Micro and Technology Rescue, provide a strong support infrastructure for customers developing a multitude of innovative, x86-compatible embedded designs based on energy efficient, high performance and cost effective Transmeta processors.

"These design firms are already helping Transmeta to generate business opportunities in Europe in accordance with our geographic expansion goals and embedded market strategy," said Dr. Matthew R. Perry, president and CEO, Transmeta Corporation. "We have a strong commitment to the region and European customers are recognizing the benefits of Transmeta's processors for embedded systems."

Transmeta's energy efficient processor architecture enables embedded devices that do not require cooling fans, eliminating the potential for fan failures that impact system reliability. Examples of suitable applications for Transmeta's technology in the embedded space include industrial automation, scientific instrumentation, retail kiosks, point-of-sale terminals, automotive infotainment, process control and home automation systems.

"We are designing a variety of industrial embedded platforms that require the special combination of power efficiency, high performance and X86 compatibility that is characteristic of Transmeta's processors," said Rune Domsten, CEO, IO Technologies. "Our customers are impressed with the capabilities provided by Transmeta's technology."

The three firms provide European customers with invaluable design and manufacturing services that minimize cost and time-to-market for embedded systems. The requirement for Transmeta to enter into these agreements reflects the growing number of embedded design opportunities for the company in the European market.

"Our firm has already implemented several projects based on Transmeta's technology, including BIOS development for the recently announced VoiceCom VoiceButler," said Peter Marek, general manager, Marek Micro. "We expect tremendous opportunities for Transmeta's processors for embedded systems in the German and European markets. Marek Micro can help customers speed up time-to-market by supporting them with our years experience in x86 and embedded hardware and software design."

"Our customers are interested in Transmeta's energy efficient, high performance processors for embedded systems," said Jean Pierre Josse, Technology Rescue. "By providing crucial services to our customers implementing Transmeta's processors, we expect an increase in innovative embedded designs."

Transmeta's European design partners are:

IO Technologies

Formed in 1997, IO Technologies is capable of handling the entire process of electronic design and development from idea to production. The company handles an array of projects, including hardware and software development, and is able to leverage a large bank of knowledge and experience to help customers reduce time-to-market for their products.

For more information visit http://www.iotech.dk.

Marek Micro

Founded in 1999, Marek Micro is an electronic services company with extensive experience in the development of hardware and BIOS solutions. Marek Micro offers customers complete designs of ready-to-manufacture systems. The company develops an array of products for markets ranging from industrial controllers and portable handheld devices to telematics.

For more information visit http://www.marekmicro.com.

Technology Rescue

Founded in 1985, Technology Rescue is an electronic engineering company specializing in embedded board design and manufacturing. The company builds products ranging from remote control and process control systems, specialized switches and Internet routers, to industrial measurement, aircraft and military systems. Technology Rescue can also provide commercial firmware distribution, including BIOS and drivers, as well as development for Transmeta-based platforms running Microsoft(R) Windows(R) XP Embedded and CE .NET operating systems.

For more information visit http://www.techresc.com.

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 http://www.transmeta.com.

Transmeta and Crusoe are trademarks of Transmeta Corporation. Microsoft and Windows are U.S. registered trademarks of Microsoft Corp. All other product or service names mentioned herein are the trademarks of their respective owners.

CONTACT: Phillip Bergman Transmeta Corporation (408) 919-6818 pbergman@transmeta.com or Deborah A. Stapleton Investor Relations (650) 470-0200 deb@stapleton.com