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SANTA CLARA, Calif.--(BUSINESS WIRE)--June 25, 2001-Transmeta Corporation (Nasdaq:TMTA) today announced new Crusoe microprocessors based on 0.13 micron technology that are up to 50 percent higher in performance and 20 percent lower in power consumption than the company's previous generation of microprocessors.

The new Crusoe TM5800 and TM5500 microprocessors will be manufactured for Transmeta by Taiwan Semiconductor Manufacturing Company (NYSE:TSM) based on leading-edge, 0.13 micron process technology. TSMC is the world's largest dedicated semiconductor foundry and provides the industry's most advanced 0.13 micron process technology.

``Our relationship with TSMC is a key part of our strategy,'' said Mark K. Allen, president and chief executive officer, Transmeta Corporation. ``Our confidence in TSMC has allowed Transmeta to convert 100 percent of production wafer starts to TSMC's 0.13 micron manufacturing lines.''

``In addition to our 0.13 micron logic and SRAM processes, TSMC is the first IC foundry in the world to begin volume production of a 0.13 micron high-performance CPU process,'' said Dr. Edward C. Ross, president of TSMC of North America. ``Transmeta's decision to use this technology for high-performance CPUs is a powerful acknowledgement of our IC industry leadership. We expect this relationship to benefit Transmeta's customers as well as both of our companies.''

The new Crusoe TM5800 and TM5500 microprocessors (512K L2 and 256K L2 cache memory respectively) provide increased performance, lower power and greater manufacturing economies than the previous 0.18 micron generation. Additionally, software-based Crusoe microprocessors gain both power and performance benefits from a new upgrade to Transmeta's Code Morphing software. This dual level of power and performance improvement is unique to the Crusoe microprocessor due to its software-based design. The new Code Morphing software version 4.2 will be shipping in product introductions from system manufacturers in the next few months.

Crusoe microprocessors also provide state-of-the-art, on-chip double-data rate (DDR) DRAM and single-data rate (SDR) DRAM controllers. With DDR implementations, original equipment manufacturers (OEMs) will have both lower power and higher performance parts. Both controllers can be used at the same time, or individually, giving Crusoe microprocessors the highest integration, richest feature set North Bridge functionality available to OEMs as they optimize performance, power and cost.

``The original Crusoe TM5600 microprocessor broke new ground for long battery life systems, and new Crusoe TM5800-based systems will raise the bar for leadership in low-power consumption and performance,'' said Jim Chapman, executive vice president of sales and marketing, Transmeta Corporation. ``Now our customers can take advantage of Crusoe's 0.13 micron power specifications, Code Morphing software improvements and the industry trend towards DDR memory, to build best in class systems that will lead the industry in the drive toward wireless productivity.''

The Crusoe TM5800 and TM5500 microprocessors are immediately available and Transmeta expects customer product announcements based on the new chips throughout the balance of this year. The TM5800-800MHz is priced at $198 in 1,000-unit quantities. The TM5800 is also offered at 700, 733 and 766 MHz. The Crusoe TM5500 is available at 600, 667 and 733MHz. The TM5500-667MHz is available at $85 in 1,000-unit quantities. The 1GHz TM5800 is expected to be available in systems during the first half of 2002.

Advanced Semiconductor Engineering (NYSE:ASX), one of the world's largest semiconductor packaging and test companies, will provide Transmeta with complete backend assembly and test services for the new Crusoe TM5800 and TM5500 microprocessors. The new chips will utilize ASE's leading flip chip assembly process from wafer bumping, probing to packaging and final test.

Founded in 1995, Transmeta announced the software-based, energy-efficient Crusoe microprocessor in January 2000 and began shipping volumes to customers in September of that year. The company went public in November 2000 and less than one year after shipping its first microprocessors, a multitude of Crusoe-based notebooks, Internet appliances and ultradense servers have been introduced by major computer companies.

About Transmeta

Transmeta is a publicly traded company located in Santa Clara, California. 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 and Internet appliance segments of the mobile Internet computer market, as well as ultra-dense servers.

For more information about the Crusoe microprocessor visit http://www.transmeta.com.

About TSMC

TSMC is the world's largest dedicated semiconductor foundry, providing the industry's leading process technology, library and IP options and other leading-edge foundry services. TSMC operates two six-inch wafer fabs and nine eight-inch wafer fabs in three countries, including its two joint ventures fabs -- Vanguard and SSMC -- and its North American subsidiary, WaferTech. In 2000, TSMC produced the foundry industry's first 300mm customer wafers and began constructing two dedicated 300mm fabs. TSMC's corporate headquarters are in Hsin-Chu, Taiwan. More information about TSMC is available through the World Wide Web at http://www.tsmc.com.

Cautionary Statement for Transmeta Investors

This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally preceded by words such as ``plans,'' ``expects,'' ``believes,'' ``anticipates'' or ``intends.'' Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty that could cause actual results to differ materially from current expectations. We urge investors to review in detail the risks and uncertainties described in Transmeta's recent filings with the United States Securities and Exchange Commission, including specifically our recent Form 10-K and our most recently filed Form 10-Q.

Note to Editors: Transmeta, Crusoe and Code Morphing are trademarks and/or registered trademarks of Transmeta Corporation in the United States and/or other countries. All other trademarks are the properties of their respective owners.

     Transmeta Corporation
     Phillip Bergman, 408/919-6818
     bergman@transmeta.com
         or
     TSMC North America
     Dan Holden, 408/382-7921
     dholden@tsmc.com