Transmeta Delivers Specialized Processor to Support Microsoft's Pay-as-you-go Computing With FlexGo for Emerging Markets

Update: Intellectual Ventures has acquired Transmeta Patent Portfolio on Jan. 28, 2009

SANTA CLARA, Calif.--May 22, 2006--Transmeta Corporation, the leader in efficient computing technologies, today announced that it has developed a specialized Efficeon® microprocessor and a robust reference system platform specifically designed to support FlexGo(TM), Microsoft's new technology that enables subscription and pay-as-you-go computing models in emerging markets. These offerings are designed for consumers within emerging markets where acquisition cost and uncertain monthly income have limited widespread Personal Computer ownership. Microsoft's FlexGo technology combined with Transmeta's microprocessor chip technology offer an affordable means for personal computer usage and consumption through new business models such as pay-as-you-go computing.

These new business models resemble the highly effective prepaid and subscription cellular phone business model currently implemented in emerging markets. Analysts estimate that there are about 1.5 billion people in the world that earn the equivalent of $4,000 to $20,000 annually who could be potential users of low cost personal computers, if the costs of entry are low and monthly costs for connections are priced to fit within their budgets.

"Transmeta's innovative microprocessor architecture and strong engineering services team enabled us to create a product that fits Microsoft's requirements," commented Arthur L. Swift, president and CEO of Transmeta. "Our 90 nanometer Efficeon processor has a compelling feature set, and its unique software-based architecture enabled customization for this specialized application. From the beginning, this Microsoft program has been an ideal engagement for the synergistic engineering services component of our new business model."

Transmeta developed this specialized version of its x86-compatible Efficeon microprocessor and the associated reference system platform under an engineering services agreement between Transmeta and Microsoft first announced in May 2005.

The specialized microprocessor is an enhanced version of Transmeta's 90 nanometer Efficeon microprocessor that includes instruction set extensions developed with Microsoft to support the FlexGo technology, which enables both pay-as-you-go and subscription computing models in emerging markets. This new Efficeon processor provides a secure foundation for Microsoft's FlexGo technology and associated business models. The design of the processor offers robust protection from repurposing and protects the business investment in subsidized systems.

The reference system platform is a production-ready solution that provides the security and hardening recommended, both at the microprocessor level and the system design level, to support the pay-as-you-go and subscription-based usage models. The cost effective design also meets the unique needs of users in emerging markets. For example, the system is powered with a 12-volt DC input, which can either be supplied by a low cost DC transformer or a car battery.

"Transmeta's Efficeon microprocessor and reference system platform provide the features and cost-effective hardening recommended for subscription and pay-as-you-go computing models with FlexGo technology," said Tom Phillips, General Manager of the New Business & Products Group at Microsoft. "Transmeta rose to the challenge and delivered both a specialized processor and platform to meet the unique needs of FlexGo. They have delivered a strong system that is well-suited for the requirements of FlexGo-enabled PCs."

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 now also provide, through strategic alliances and under contract, engineering services that leverage our microprocessor design and development capabilities. In addition to our microprocessor product and services businesses, we also develop and license 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.