October 29, 2002

Transmeta and MontaVista announce partnership

Annette Oevermann writes: Santa Clara, Calif. October 29, 2002 â Transmeta Corporation (Nasdaq: TMTA), designer of the energy efficient Crusoe processor, announced a relationship with MontaVista Software Inc., the company powering the embedded revolution. Under the terms of this agreement, developers using MontaVista Linux Professional Edition will be able to develop applications targeting Transmetaâs Crusoe processor family.

âTransmeta's Crusoe processor provides a strong combination of energy efficiency, high performance and x86 compatibility,â said Bill Weinberg, Director of Strategic Marketing, MontaVista Software Inc. âMontaVista sees great synergy between our strategic embedded Linux platform and a wide range of potential Crusoe-based applications in the consumer electronics space.â

The collaboration between Transmeta and MontaVista Software Inc. will enable customers of both companies to bring Linux-based consumer electronics products to market more quickly and cost-effectively. Optimized for real-life usage patterns, the Crusoe processor offers x86 compatibility, energy efficiency for all-day computing, and leverages a wide variety of existing x86 applications and a familiar development environment for faster design cycles.

âMontaVista is propelling the development of next-generation Linux products in a cost-effective manner,â said Dave Ditzel, vice president of marketing and chief technology officer, Transmeta Corporation. âWith our combined technologies, customers can now develop unique applications for portable audio, multimedia and personal entertainment devices with a shorter time-to-market and greater operating efficiencies. The popularity of both Crusoe and MontaVista Linux Professional Edition in Japan makes this an especially strong match.â

MontaVista Linux Professional Edition 2.1 is the most recent generation of the company's award winning embedded OS platform. It includes cross development tools and native tool chains for local development, along with extensive real-time features. MontaVista Linux Professional Edition 2.1 has the broadest hardware support in the industry. It targets 24 processors and supports more than 70 COTS (commercial off-the-shelf) and reference boards. This collaboration will enable new and existing Crusoe-based reference platforms to utilize Montavista Linux Professional Edition.

Validation and Availability

Transmeta has verified the MontaVista Linux Professional Edition 2.1 for the Crusoe TM5800 System Development Kit and an application note is available from the Transmeta web site and MontaVista Zone (Customer web portal) to simplify the bring-up process. New customers may download a free MontaVista Linux Preview Kit from MontaVista Software for evaluation purposes. The Preview Kit will also be included in a future release of Transmetaâs Crusoe System Development Kit.

About Transmeta Corporation

Transmeta develops and sells software-based microprocessors and develops additional hardware and software technologies that enable computer manufacturers to build computers that simultaneously offer long battery life, high performance and x86 compatibility. Transmeta's family of Crusoe microprocessors is targeted at the notebook, Tablet PC and Internet appliance segments of the mobile Internet computer market, as well as a range of embedded applications. To learn more about Transmeta visit www.transmeta.com.

About MontaVista Software

MontaVista Software is a leading global supplier of systems software for intelligent connected devices and their associated infrastructure, for applications ranging from communications infrastructure to consumer electronics. MontaVista powers the embedded revolution by providing GNU/Linux based open-source systems software solutions. Founded in 1999 by real-time operating system (RTOS) pioneer James Ready, MontaVista Software's principal products include MontaVista⢠Linux® Professional Edition and MontaVista⢠Linux® Carrier Grade Edition. The Professional Edition comprises a Linux-based embedded source and binary distribution, cross development environments, and a versatile set of tools for the x86/IA-32, PowerPC, StrongARM, MIPS, SH, ARM, XScale, Xtensa and other microprocessor architectures. The Carrier Grade Edition is a next-generation high availability product that is the first Commercial Off-The-Shelf Linux (COTS) platform for telecommunications and carrier-grade applications. MontaVista Software also provides several complementary technology products addressing specific customer needs, such as Java development and runtime, powerful graphics capabilities and more.

Headquartered in the heart of Silicon Valley, in Sunnyvale, Calif., MontaVista Software is a privately held company funded by leading investors such as Alloy Ventures, US Venture Partners, RRE Ventures, WR Hambrecht + Co., IBM, Intel Capital, Panasonic and Sony Corporation. For more information about MontaVista Software, please visit http://www.mvista.com, email to info@mvista.com or
call (408) 328-9200.

Linux is a registered trademark of Linus Torvalds. MontaVista is a trademark of MontaVista Software, Inc. Transmeta and Crusoe are trademarks of Transmeta Corporation. Other product or service names mentioned herein are the trademarks of their respective owners.


Phillip Bergman,
Transmeta Corporation,

Investor Relations,
Deborah A. Stapleton,

Transmeta Safe Harbor Statement

This release contains forward-looking statements regarding future events or the future financial performance of the company, which statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements are only predictions, which may differ materially from actual results or future events. All such forward-looking statements are based upon our current expectations but involve inherent risks and uncertainties. Such forward-looking statements speak only as of the date of this release, and the company will not necessarily provide updates of its forward-looking projections or forecasts. Risks and uncertainties that may have material effects on our future performance include general economic conditions, including the recent significant slowdown in the technology sector and semiconductor industry, the timing, rescheduling or cancellation of significant customer orders, potential fluctuations in our quarterly results, dependence on increasing demand for our Crusoe products, difficulties in developing or manufacturing new products in a timely and cost effective manner, market acceptance of our new products and of our customers' systems using our products, the growth of emerging markets that we are addressing, our customer concentration, the loss of revenue if a major customer were to cancel, reduce or delay a product order, inventory write-offs from a failure to forecast product demand accurately, our dependence on third parties for sourcing materials and providing manufacturing services, delays in product deliveries as we transition to smaller geometry process technologies, intense competition from Intel and others, rapid technological change, patents and intellectual property rights, volatility of our stock price, and the cyclical nature of the semiconductor market. We urge investors to review our regular filings with the Securities and Exchange Commission, including specifically our most recently filed reports on Form 10-Q, which identifies and describes many of these and other important risk factors that could cause our actual results to differ from those contained in these forward-looking statements.


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