Transmeta Announces $12.8 Million Securities Offering

SANTA CLARA, CA. -- September 21, 2007 -- Transmeta Corporation today announced an offering to sell securities to selected institutional investors for an aggregate price of $12,800,000. The offering is made pursuant to the Form S-3 shelf registration statement that was filed by Transmeta with the Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on July 20, 2007. The offering is expected to close on or about September 26, 2007, subject to the satisfaction of customary closing conditions. Transmeta intends to use the net proceeds from the offering to meet its working capital requirements and fund its operations.

The securities in the offering include up to 2,000,000 shares of Transmeta common stock and warrants to purchase up to 1,000,000 shares of Transmeta common stock, which securities are being offered in “units” at a price of $6.40 per unit. Each unit consists of one share of Transmeta common stock and a warrant to purchase 0.5 shares of Transmeta common stock at an exercise price of $9.00 per share for each share of common stock that the investor purchases in the offering.

A.G. Edwards & Sons, Inc. acted as exclusive placement agent for the offering.

The registration statement relating to these securities was filed with and has been declared effective by the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. Copies of the prospectus supplement together with the accompanying prospectus can be obtained at the Securities and Exchange Commission’s website at http://www.sec.gov or from A.G. Edwards & Sons, Inc. at One North Jefferson, Saint Louis, Missouri 63116, (314) 955-3000.

About Transmeta Corporation

Transmeta Corporation develops and licenses innovative computing, microprocessor and semiconductor technologies and related intellectual property. Founded in 1995, Transmeta first became known for designing, developing and selling its 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. Transmeta is presently focused on developing and licensing its advanced power management technologies for controlling leakage and increasing power efficiency in semiconductor and computing devices, and in licensing its computing and microprocessor technologies to other companies. To learn more about Transmeta, visit www.transmeta.com.