AMD To Provide Transmeta Efficeon Microprocessor Supporting Microsoft FlexGo Technology In Emerging Markets

AMD To Provide Transmeta Efficeon Microprocessor Supporting Microsoft FlexGo Technology In Emerging Markets

AMD (NYSE: AMD) and Transmeta Corporation (NASDAQ:TMTA) today announced that they have entered into an exclusive agreement under which AMD will market and provide the recently announced specialized version of the Efficeon® microprocessor in emerging markets. The AMD Efficeon microprocessor was specifically designed by Transmeta to provide a secure hardware foundation for FlexGo, Microsoft Corp.’s new technology that enables pay-as-you-go and subscription computing models. The AMD Efficeon offers robust CPU level security that delivers asset protection in a product that is available today to meet the needs of the new business models enabled by Microsoft FlexGo.

Microsoft’s FlexGo technology, and the pay-as-you-go and subscription computing models it enables, combined with AMD’s Efficeon processor, will accelerate AMD’s 50×15 initiative in new and important ways. Under 50×15, AMD is establishing a global network of partners and business models to help connect 50 percent of the world’s population to the Internet by the year 2015. Current global Internet penetration stands at about 15 percent. Through the AMD Efficeon product, OEM and other partners will have a robust CPU based Microsoft FlexGo implementation that can be readily adapted to both mobile and desktop system designs. The AMD Efficeon product was used to create the first hardware implementation for FlexGo and is the first CPU based FlexGo product. Further, the AMD Efficeon product is now being utilized in the second Brazil FlexGo trials that were launched by Microsoft on May 22nd of 2006.

“The AMD Efficeon processor is the industry’s first microprocessor designed specifically to support Microsoft FlexGo technology,” said Billy Edwards, AMD chief innovation officer and senior vice president. “The Efficeon processor will allow consumers in high-growth markets to obtain computers that are provided on a pre-paid basis using either tokens or pre-paid activation cards. This same business model was instrumental in establishing massive global penetration for cell phones and we believe we can adapt it specifically to achieve the goals of AMD’s 50×15 Initiative.”

“AMD’s worldwide channels and consumer brand will accelerate the penetration of this specialized Efficeon microprocessor into high volume emerging markets,” said Arthur L. Swift, president and chief executive officer, Transmeta Corporation. “We look at this announcement as the beginning of a very successful collaboration between AMD and Transmeta to bring Microsoft FlexGo technology to market. Our goal, in conjunction with AMD, is to leverage Transmeta’s unique microprocessor architecture and bring affordable solutions quickly to market for the hundreds of millions of potential Personal Computer users in emerging markets.”

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