[Dave Baumann]

Transmeta and XGI Announce Availability of XGI Graphics Solutions for the Efficeon Processor Platform
Volari XP5 Solution Extends Transmeta Platform with Strong Price/Performance

SANTA CLARA, CA and TAIPEI, TAIWAN - June 2, 2004 -- Transmeta Corporation (NASDAQ: TMTA), the leader in efficient computing, and XGI Technologies, a Taiwan-based graphics chipsets supplier, today announced the availability of XGI graphics solutions for the Transmeta Efficeon(tm) processor platform.

Transmeta and XGI have validated the XGI Volari XP5 graphics processing unit with the Transmeta Efficeon TM8600 processor, making XP5 suitable for immediate customer use in Efficeon-based designs.

"In today's marketplace, our OEM customers desire the ability to choose their chipset and graphics solution based on the goals of their system. This ability to configure different choices in our open platform is one major strength of Transmeta's Efficeon processor," said Arthur L. Swift, senior vice president of marketing, Transmeta Corporation. "The addition of the Volari XP5 to the Efficeon platform offers customers a strong choice that provides excellent cost/performance characteristics."

These combined capabilities are immediately available for customer adoption, and the companies will also soon validate the XP5 solution on the upcoming 90-nanometer TM8800 processors slated for production mid-year.

"We are pleased with the opportunity to collaborate with Transmeta on the Efficeon processor platform. This year our companies have worked closely to assure our Volari XP5 solution works smoothly for our mutual customers," said Robert Fang, vice president of marketing, XGI Technologies. "We look forward to offering our XP5 solution to customers who can now take advantage of an energy efficient processor in the system."

To enable rapid time-to-market of Efficeon and XP5-based designs, Transmeta is developing a reference design, to be announced later, based on Efficeon and the Volari XP5. This reference design will highlight the attractive performance, cost, board area, and power consumption of this comined solution, and offer customers a validated board on which to base their design.

About the Transmeta Efficeon Processor
The Transmeta Efficeon processor is designed to provide power efficiency, design flexibility, performance-on-demand and low cost to meet the need of the next generation of mobile, wireless, and embedded devices. It includes three new high performance bus interfaces: an on-chip HyperTransport(tm) bus interface for increased input/output efficiency, an on-chip Double Data Rate (DDR) SDRAM memory interface for increased throughput, and an on-chip AGP graphics interface for high performance graphics solutions. These new interfaces allow Efficeon to achieve more work per clock, which results in greater energy efficiency and longer battery life for mobile computer users.

The Transmeta Efficeon processor's dynamic LongRun(r) power management features and integrated architecture are designed to give system designers and marketers a wide range of choices in creating products that deliver added value, functionality, security, comfort, reliability, and cost savings to end users.

About XGI Technologies
XGI(tm) Technology Inc., originated from eXtreme Graphics Innovation, was founded in June 2003 and is headquartered in Taipei, Taiwan. XGI(tm) is a leading visual computing and GPU design company aiming to deliver a powerful and feature-packed GPU performance to enrich the users experience. XGI(tm) has positioned itself as a Fabless IC design company. It offers a full range of video solution for Professional, Entertainment and now Mobile usage. For more detailed information, please visit XGI(tm) website at <http://www.xgitech.com/> http://www.xgitech.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.