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

Santa Clara, CA - January 24, 2005 - 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 Sony Corporation.

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 may be used 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 technique further by using Transmeta's proprietary new approach for 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.

"Transmeta's LongRun2 technologies represent a major practical innovation that addresses the problems of exponentially rising leakage and power consumption facing the semiconductor industry," said Bijan Moslehi, Ph.D., chief technology officer of The Noblemen Group and senior vice president of the Noblemen Semiconductor Technology Research & Strategy Division. "I expect that the implementation of these ground-breaking technologies will benefit the consumer significantly, by increasing performance, lowering costs, improving battery life, and ultimately, improving the overall consumer experience."

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, the ability to enter strategic collaborations or raise financing on satisfactory terms, the risks and costs inherent in any efforts that we may undertake under a modified business model, our ability to recognize significant licensing revenue in the future, 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 reports 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.