SANTA CLARA, Calif. & SEATTLE -- Transmeta Corporation (Nasdaq:TMTA), the leader in efficient computing technologies, today announced the first public demonstration of its new fanless Media Center sample design at the Microsoft WinHEC 2005 in Seattle, April 25-27. The design, which showcases Transmeta's technology and engineering services with a fully functional reference system, allows manufacturers and Transmeta to efficiently create and customize quiet Media Centers for the optimum living room entertainment experience.

"Transmeta is committed to enabling our customers to rapidly develop powerful applications of our technology in high growth consumer markets," said Arthur L. Swift, president and CEO of Transmeta. "This Media Center design is another example of our commitment to preserve and monetize our intellectual property in a new way using products, engineering services and licensing as three distinct delivery vehicles for our technology."

The design allows computer system manufacturers to develop a low power and reliable Media Center design without the need for noisy cooling fans or expensive sound isolation, thereby providing their consumers with a more enjoyable and cost effective entertainment experience. The platform is completely compatible with Microsoft Media Center Edition 2005, and features a high performance graphics controller from ATI Technologies Inc.

The board is a compact 6-layer Mini-ITX form factor motherboard, measuring 170mm x 170mm, including the microprocessor, on-board video/graphics, consumer electronics video and audio interfaces, Ethernet, USB 2.0, FireWire and IDE interfaces. Its high performance DX9-class graphics controller from ATI delivers an impressive multimedia user experience.

"ATI believes strongly in the Media Center market and is very excited to be involved in Transmeta's reference platform," said Godfrey Cheng, Director of Marketing, Multimedia Group, ATI Technologies Inc. "The combination of reduced noise for quiet ambiance with ATI's low power performance and rich multimedia capabilities are the perfect complement to enable this unique design."

The Efficeon microprocessor supports Transmeta's powerful AntiVirusNX(TM) Technology, and works in conjunction with Microsoft's Windows XP Service Pack 2 to offer enhanced security and safer computing by detecting and disabling common forms of computer viruses and worms. This capability is particularly important for media center PC's, where users expect the reliability of traditional consumer electronics.

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. 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, specific conditions and volatility in the markets that we address, difficulties or delays in implementing our restructuring plan, the potential loss of key technical and business personnel resulting from our restructuring plan, practical challenges in modifying our business model, the adoption and market acceptance of our products and technologies by current and potential customers and licensees, our inability to predict or ensure that third parties will license our technologies or use our technologies to generate royalties, the rescheduling or cancellation of significant customer orders, difficulties in developing or manufacturing 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, reaching agreement upon a definitive agreement after signing a non-binding letter of intent, 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 report on Form 10-K, which describes 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, LongRun2 and Crusoe are trademarks of Transmeta Corporation. All other product or service names mentioned herein are the trademarks of their respective owners.