SANTA CLARA, Calif.–(EMWNews)–Transmeta Corporation (NASDAQ:TMTA) today announced financial results

for the second quarter ended June 30, 2008.

Revenue for the second quarter of 2008 was $366,000, all of which was

derived from licensing activities. This compared with $661,000 for the

first quarter of 2008, comprised of $240,000 of license revenue,

$168,000 of services revenue, and $253,000 of end-of-life product

revenue.

Total operating expenses for the second quarter of 2008 were $1.9

million, compared with $3.1 million in the first quarter of 2008. Second

quarter operating expenses included $5.9 million of income from the

settlement and licensing agreement with Intel, net restructuring charges

of $455,000, non-cash charges of $908,000 for amortization of intangible

assets, and non-cash stock compensation charges of $1.3 million.

In the second quarter, the Company recorded interest income of $1.8

million, including $1.1 million of imputed interest income from the

settlement and licensing agreement with Intel. Net income was $214,000,

or $0.02 per share, compared with a net loss of $41,000, or $0.00 per

share, in the first quarter of 2008.

The Company’s cash, cash equivalents and short

term investments at June 30, 2008 totaled $141.8 million. Transmeta

continues to be debt free.

As announced today in a separate press release, Transmeta has entered

into an agreement with NVIDIA Corporation granting NVIDIA a

non-exclusive license to Transmeta’s Long Run

and LongRun2 power management technologies and other intellectual

property for use in connection with NVIDIA products. Under the

agreement, NVIDIA agrees to pay Transmeta a one-time, non-refundable

license fee of $25.0 million. The Company expects to receive this cash

payment of $25.0 million during the third quarter of 2008.

In the third quarter, the Company expects to recognize $5.9 million of

operating income and $1.2 million of imputed interest income from the

settlement and licensing agreement with Intel. Transmeta expects to be

profitable on a GAAP net income basis in the third quarter of 2008 and

continues to expect to be profitable for fiscal year 2008.

“We are very pleased to add NVIDIA to our list

of licensees,” said Les Crudele, president and

CEO. “We believe the licensing agreement

creates significant value for our stockholders. In addition, we continue

to actively explore a full range of strategic alternatives and continue

to be engaged in discussions with other companies about potential ways

to increase value for all of our shareholders.”

Conference Call

Transmeta’s management will host a conference

call today at 5:00 p.m. Eastern time / 2:00 p.m. Pacific time to discuss

the operating performance for the quarter. The conference call will be

available live over the Internet at the investor relations section of

Transmeta’s website at www.transmeta.com.

To listen to the conference call, please dial (913) 312-9304. A

recording of the conference call will be available for one week,

starting one hour after the completion of the call, until 11:59 p.m.

Pacific time on August 13, 2008. The phone number to access the

recording is (719) 457-0820, and the passcode is 3504365.

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 are presently focused on developing and

licensing our advanced power management technologies for controlling

leakage and increasing power efficiency in semiconductor and computing

devices, and in licensing our computing and microprocessor technologies

to other companies. 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 practical operational challenges

following our recent restructuring and change of business model, the

potential loss of key technical and business personnel, uncertainty

about the adoption and market acceptance of our technology offerings 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, difficulties in developing our

technologies in a timely and cost effective manner, 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 LongRun2 are trademarks of Transmeta Corporation. All

other product or service names mentioned herein are the trademarks of

their respective owners.

Transmeta Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
		June 30, 2008				December 31, 2007				June 30, 2007
ASSETS
Current assets:
Cash and cash equivalents		$	96,919			$	15,607			$	4,267
Short-term investments			44,840				2,968				10,984
Accounts receivable			44				163				224
Other receivables, current			19,393				149,400				–
Prepaid expenses and other current assets			2,064				2,476				1,935
Total current assets			163,260				170,614				17,410
Other receivables, long-term			68,089				85,200				–
Property and equipment, net			231				284				487
Patents and patent rights, net			–				2,388				5,811
Other assets			400				800				2,015
TOTAL ASSETS		$	231,980			$	259,286			$	25,723
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable		$	593			$	341			$	1,406
Accrued compensation			934				15,351				1,183
Income taxes payable			15				3,306				9
Accrued restructuring costs			511				1,592				3,771
Other accrued liabilities			882				1,028				2,455
Current portion of deferred income from settlement and licensing			23,460				23,460				–
Current portion of long-term payable			800				667				533
Total current liabilities			27,195				45,745				9,357
Long-term deferred income from settlement and licensing, net of current portion			199,410				211,140				–
Long-term payable, net of current portion			400				800				1,200
Total liabilities			227,005				257,685				10,557
Stockholders’ equity:
Convertible preferred stock			6,966				6,966				–
Common stock			742,441				739,268				726,823
Treasury stock			(2,439	)			(2,439	)			(2,439	)
Accumulated other comprehensive gain (loss)			57				29				7
Accumulated deficit			(742,050	)			(742,223	)			(709,225	)
Total stockholders’ equity			4,975				1,601				15,166
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	231,980			$	259,286			$	25,723

Transmeta Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
		Three Months Ended												Six Months Ended
		June 30, 2008				March 31, 2008				June 30, 2007				June 30, 2008				June 30, 2007
Revenue:
Product		$	–			$	253			$	25			$	253			$	167
License			366				240				–				606				–
Service			–				168				146				168				2,143
Total revenue			366				661				171				1,027				2,310
Cost of revenue
Product			–				3				–				3				80
Service (1)			–				163				80				163				1,218
Impairment charge on inventories			–				–				–				–				364
Total cost of revenue			–				166				80		Transmeta Corporation Sujan Jain, 408-919-3000 or Mozes Communications LLC Kristine Mozes, 781-652-8875 (Investors) Major Newsire & Press Release Distribution with Basic Starting at only $19 and Complete OTCBB / Financial Distribution only $89 Get Unlimited Organic Website Traffic to your Website  TheNFG.com now offers Organic Lead Generation & Traffic Solutions