Transmeta and ATI Collaborate To Enrich Graphics Options

SANTA CLARA, Calif. and TAIPEI, Taiwan--(BUSINESS WIRE)--June 1, 2004--

ATI MOBILITY(TM) RADEON(TM) Family to Have Extended Availability for Transmeta Processors

“Transmeta's OEM customers frequently choose ATI's exceptional graphics solutions for their systems, especially based on their high performance and low power consumption”

Transmeta Corporation (Nasdaq:TMTA), the leader in efficient computing, and ATI Technologies Inc. (Nasdaq:ATYT) (TSX:ATY), the worldwide leader in 3D graphics solutions, today announced a collaboration to provide extended availability of low-power, space-saving ATI MOBILITY(TM) RADEON(TM) graphics solutions for the Transmeta Efficeon(TM) and Crusoe(R) processor platforms. This extension provides availability of certain configurations of the MOBILITY RADEON family of graphics processing units with integral frame buffers through 2005 or beyond.

The extended availability of ATI's MOBILITY RADEON will give Transmeta's customers continued access to energy-efficient graphics solutions. These high-performance platforms are currently employed by industry leaders such as Sharp, as well as systems under development by other customers.

"Transmeta's OEM customers frequently choose ATI's exceptional graphics solutions for their systems, especially based on their high performance and low power consumption," said Arthur L. Swift, senior vice president of marketing, Transmeta Corporation. "As one example, Sharp has chosen the MOBILITY RADEON solution for its incredibly slim and efficient Actius MM20 / Muramasa MM2 ultralight notebook based on Efficeon. The extended availability of these solutions continues to give our customers attractive ATI graphics options for their innovative Efficeon system designs where minimizing power consumption is paramount."

A number of designs in the past have featured the combination of a Transmeta Crusoe processor and ATI graphics, ranging from notebooks to embedded products. Now Transmeta's Efficeon processor and its integral AGP 4X graphics interface allows customers access to higher performance AGP graphics solutions from ATI, such as the MOBILITY RADEON family of visual processors.

"As the worldwide leader in mobile graphics, ATI is committed to providing solutions that strike the balance between high performance and low power consumption," said David Cummings, director of Mobile Marketing, ATI Technologies. "Through working with Transmeta, we can offer increased value to notebook PC users by providing access to a best-in-class family of mobile graphics processors."

About ATI Technologies, Inc.

ATI Technologies Inc. is a world leader in the design and manufacture of innovative 3D graphics and digital media silicon solutions. An industry pioneer since 1985, ATI is the world's foremost visual processor unit (VPU) provider and is dedicated to deliver leading-edge performance solutions for the full range of PC and Mac desktop and notebook platforms, workstation, set-top and digital television, game console and handheld markets. With 2003 revenues in excess of US $1.3 billion, ATI has more than 2,200 employees in the Americas, Europe and Asia. ATI common shares trade on Nasdaq (ATYT) and the Toronto Stock Exchange (ATY).

To learn more about ATI Technologies, Inc., visit www.ati.com.

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. We announced our first Crusoe(R) family of processors in 2000, and we introduced our new Efficeon family of processors in October 2003. 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 and 10-Q, 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, 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.