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Electronics Production | September 25, 2008

Transmeta initiates process to<br>seek sale of the company

Transmeta has announced that, with the assistance of its independent financial advisors Piper Jaffray & Co., it has initiated a process to seek a potential sale of the company.
After actively exploring a full range of strategic alternatives over the past few months and after strengthening its balance sheet, Transmeta will now explore a possible sale of the Company as a way to enhance value for all its stockholders.

In a separate press release , the Company announced that it has entered into two agreements with Intel for the licensing of certain Transmeta technologies and intellectual property and for the accelerated payment of its receivables from Intel, which will result in a one-time, non-refundable payment of $91.5 million in the third quarter of 2008.

"We are very pleased to have achieved the two agreements with Intel," said Les Crudele, president and CEO of Transmeta. "Receiving these one-time payments strengthens our balance sheet and allows potential buyers to more accurately evaluate our Company. This year, as a result of our successful licensing activities, we will collect at least $265 million of cash payments for our intellectual property and patents. We expect that our intellectual property portfolio and licensing business, combined with our solid balance sheet, will be attractive to potential bidders, and we look forward to conducting a timely process to maximize value for our stockholders. As we proceed with the process, we remain focused on working with potential licensees, as well as developing and validating our IP blocks so that we can broaden our target market."

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