Transmeta Licenses Advanced Power Management and Transistor Leakage Control Technologies to Fujitsu

Transmeta Licenses Its LongRun2 Technologies to Fujitsu for use in Multiple Process Generations

Santa Clara, CA - December 2, 2004 - Transmeta Corporation (NASDAQ:TMTA), the leader in efficient computing, today announced that Transmeta's advanced LongRun2™ technologies for power management and transistor leakage control have been licensed to Fujitsu Limited. Fujitsu will utilize Transmeta's LongRun2 technologies for use in Fujitsu's current and future generation semiconductor products.

Transmeta's LongRun2 technologies address the problems of excessive chip heat and transistor leakage, which pervade the semiconductor industry and are expected to get progressively worse as successive manufacturing technologies scale down to smaller dimensions. Transmeta's advanced LongRun2 technologies are expected to improve semiconductor devices by reducing total chip power, reducing standby power, reducing burn-in power, and potentially improving chip performance and reducing manufacturing costs. LongRun2 technologies build upon Transmeta's first generation LongRun® power management technology, which pioneered the dynamic adjustment of MHz and voltage, hundreds of times per second, to reduce power consumption. LongRun2 technologies extend this approach by dynamically adjusting transistor threshold voltages to control transistor leakage. This dynamic control reduces leakage caused by changes in runtime conditions, such as voltage and temperature, which are not predetermined when the chip is manufactured.

"Fujitsu has achieved a performance leadership position with its 90nm CMOS technology node, featuring an industry leading transistor with a 40nm gate length. In reaching for even smaller transistor geometries, Fujitsu saw that transistor leakage would become a critical issue to solve," said Matthew R. Perry, president and chief executive officer of Transmeta. "We're pleased that Fujitsu recognizes Transmeta's LongRun2 Technologies as having advanced new approaches to attacking the transistor leakage problem in order to achieve greater power efficiency."

"Transmeta is well known for its focus on Efficient Computing," said Toshihiko Ono, group president of Fujitsu Limited's Electronic Devices Business Group. "By working closely together with Transmeta, we expect to combine the capabilities of our high performance technologies and their low-power expertise for the benefit of our ASIC, CPU and foundry customers."

"Transmeta's LongRun2 technologies are a major practical innovation designed to address the leakage problem facing the industry and will enable continued scaling of semiconductors to smaller geometries," said Bijan Moslehi, Ph.D., chief technology officer of The Noblemen Group and senior vice president of the Noblemen Semiconductor Technology Research Division. "The implementation of these ground-breaking technologies will benefit licensees by increasing semiconductor performance, providing better yields and ultimately driving down manufacturing costs in the future."

Transmeta's Efficeon TM8800, which recently began initial production, is manufactured in a state-of-the-art 90nm CMOS process technology at Fujitsu's Electronic Devices Business Group's Akiruno Technology Center in west Tokyo. By using this advanced process technology, the initial 90nm TM8800 shipments feature clock speeds of up to 1.6GHz while maintaining low power operation. The first versions of the LongRun2-enhanced TM8800 are expected to sample later this year, featuring further reductions in active and standby power.

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. 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, 10-Q 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.

Transmeta, Efficeon, AntiVirusNX, 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.