Transmeta Reports Fourth Quarter and Fiscal 2007 Results

Ends Fiscal 2007 with $259 Million in Total Assets

Transmeta Corporation (NASDAQ:TMTA) today announced financial results for the fourth quarter and fiscal year ended December 31, 2007.

Fiscal 2007 and Recent Highlights
Streamlined and restructured Transmeta’s operations to focus on its core business of developing and licensing intellectual property and technology.
Focused on developing its technology, building its licensing business and putting the building blocks in place to expand its customer base.
Received commercial royalty revenue from its first LongRun2 licensee in 2007 and expects first volume production royalty revenue in the first quarter of 2008.
Continued building its U.S. patent portfolio, adding 26 issued patents in 2007, bringing the total to 116 by year end. The Company has since had an additional 18 U.S. patents issue in 2008, bringing its current U.S. patent total to 134.
Appointed an executive team to implement and execute on its restructuring program, including Les Crudele as president and chief executive officer, Sujan Jain as chief financial officer, and Dan Hillman as vice president of engineering.
Retained Piper Jaffray & Co. as financial advisors to help identify options for enhancing shareholder value.
Resolved its patent litigation with Intel, resulting in total payments of $250 million to Transmeta over a five-year period. The Company expects to recognize $234.6 million ratably over the next ten years as an operating gain, and a total of $15.4 million of interest income from 2008 to 2013.

“In 2007 we successfully streamlined and restructured our operations to focus on our core business of developing and licensing intellectual property and technology,” said Les Crudele, president and CEO. “We also resolved our patent litigation with Intel, resulting in total payments of $250 million that Transmeta will receive from Intel over a five year period. As a result of the restructuring, the strength of our IP portfolio and significant increase in cash, Transmeta now has a strong foundation from which we can work to increase shareholder value.

“We are very pleased that the first commercial product licensed to use our LongRun2 technologies is now in volume production. We are developing IP components and tools to help accelerate the implementation of LongRun2 technologies by our licensees, to put the building blocks in place that will enable us to target a broader base of customers for our LongRun2 technologies and to strengthen our patent portfolio. In addition, we are working with our financial advisors to explore and evaluate options for enhancing shareholder value,” said Mr. Crudele.