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Transmeta Delivers Specialized Processor to Support Microsoft's Pay-as-you-go Computing With FlexGo for Emerging Markets
SANTA CLARA, Calif.—(BUSINESS WIRE)—May 22, 2006—
Transmeta Corporation (NASDAQ:TMTA), the leader in
efficient computing technologies, today announced that it has
developed a specialized Efficeon(R) 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.
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 we will not necessarily provide updates of our
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
our actual results or future events. Important risk factors that could
have material or adverse effects on our results include general
economic and political conditions, specific conditions and volatility
in the markets that we address, the risk that we might not
successfully negotiate any additional agreements to provide
engineering services, the potential loss of key technical and business
personnel, practical challenges in modifying our business model, our
ability to satisfy the continued listing requirements of the Nasdaq
Stock Market, the adoption and market acceptance of our products and
technologies by current and potential customers and licensees, our
inability to predict or ensure that third parties will license our
technologies or use our technologies to generate royalties, the
rescheduling or cancellation of significant customer orders,
difficulties in developing or manufacturing our products in a timely
and cost effective manner, our dependence on third parties for
sourcing materials and providing manufacturing services, intense
competition and competitive pressures, the ability to enter strategic
collaborations or raise financing on satisfactory terms, patents and
other intellectual property rights, and other risk factors. We urge
investors to review our filings with the Securities and Exchange
Commission, including our 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 our results. We undertake no obligation to
revise or update publicly any forward-looking statement for any
reason.
Transmeta and Efficeon are trademarks of Transmeta Corporation.
All other product or service names mentioned herein are the trademarks
of their respective owners.
Contact:
Transmeta Corporation
Greg Rose, 408-919-3000
or
Financial Dynamics
Michael Polyviou or Peter Schmidt, 212-850-5748
(Investors)
Lauren Stein, 212-850-5650 (Media)
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