AMD Makes Strategic Investment in Transmeta

SANTA CLARA, Calif.--(BUSINESS WIRE)--Transmeta Corporation (NASDAQ:TMTA) and AMD (NYSE:AMD) today announced that AMD has invested $7.5 million in Transmeta in exchange for Transmeta preferred stock.

“Transmeta has been an innovative force in the industry for more than a decade”

“We are very pleased that AMD has made a strategic investment in the future of Transmeta,” said Les Crudele, president and chief executive officer of Transmeta. “AMD has long been a leader in the development and delivery of energy-efficient, high-performance computing technologies, standards and initiatives. Transmeta has been proud to endorse and contribute to those industry leading activities, and we look forward to continuing our collaboration with AMD on technology initiatives in the future.”

“Transmeta has been an innovative force in the industry for more than a decade,” said Dirk Meyer, president and chief operating officer of AMD. “Transmeta was a key ally in helping to bring our highly-successful AMD64 technology to market and has supported the widespread industry adoption of both AMD64 and AMD’s HyperTransport technology. Our investment will support Transmeta’s technology development work and AMD’s efforts to leverage Transmeta’s innovative energy-efficient technologies to the benefit of AMD’s customers.”

About Transmeta Corporation

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

About AMD

Advanced Micro Devices (NYSE:AMD) is a leading global provider of innovative processing solutions in the computing, graphics and consumer electronics markets. AMD is dedicated to driving open innovation, choice and industry growth by delivering superior customer-centric solutions that empower consumers and businesses worldwide. For more information, visit www.amd.com.

Transmeta Corporation 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 Transmeta will not necessarily provide updates of its 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 Transmeta’s actual results or future events. Important risk factors that could have material or adverse effects on Transmeta’s results include practical difficulties in implementing its restructuring plan and modifying its business model, the potential loss of key technical and business personnel, Transmeta’s ability to satisfy the continued listing requirements of the Nasdaq Stock Market, uncertainty about the adoption and market acceptance of Transmeta’s technology offerings by current and potential customers and licensees, Transmeta’s inability to predict or ensure that third parties will license Transmeta’s technologies or use Transmeta’s technologies to generate royalties, difficulties in developing its technologies in a timely and cost effective manner, the risk that Transmeta has difficulties entering into strategic collaborations or raising financing on satisfactory terms, patents and other intellectual property rights, and other risk factors. Transmeta urges investors to review Transmeta’s filings with the Securities and Exchange Commission, including its 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 its results. Transmeta undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

AMD, the AMD Arrow logo, and combinations thereof, are trademarks of Advanced Micro Devices, Inc. Transmeta is a trademark of Transmeta Corporation. Other names are for informational purposes only and may be trademarks of their respective owners.