In early 2000, Transmeta unveiled its revolutionary Crusoe microprocessors, a family of x86-compatible microprocessors whose low power consumption enables long battery life on mobile computers. The Crusoe microprocessor has since been used in notebook PCs of many major computer manufacturers. It has also been recognized for its suitability for personal digital assistants, Internet appliances, and other systems.

Seiko Epson’s semiconductor business is based on the concept of energy-saving technology, and one of its focuses is on developing semiconductor products specifically for mobile information equipment. Mobile information equipment calls for ICs with not only low power consumption but also space efficiency to enable smaller equipment. To fulfill these requirements, Seiko Epson develops energy-saving, low-power-consuming products by utilizing core technologies: in the IC manufacturing process, processing technology characterized by low power consumption and high integration; and in the mounting stage, mounting technology aimed at further weight and size reduction.

To build upon their respective strengths, Seiko Epson and Transmeta have agreed to cooperate in the future in the development of semiconductor technology related to the energy-saving Crusoe microprocessors for mobile equipment. The elements of the relationship are as follows:

Seiko Epson has assigned to Transmeta a limited portion of its patents and patent rights relating to microprocessor technology.

Seiko Epson and Transmeta will collaborate and share information about their energy-saving technologies in an effort to develop higher-level peripheral chipsets and other devices for Crusoe microprocessors.

Seiko Epson and Transmeta will establish a cooperative relationship toward the development of a technology partnership or alliance in the Internet appliances field.

Seiko Epson and Transmeta will explore the possibilities of further cooperation and technical exchange in other technology areas.

Seiko Epson and Transmeta will continue to strengthen their cooperative ties in the development of semiconductor products for mobile information equipment.

Saburo Kusama, President of Seiko Epson Corporation, said

Energy-saving technology, at which Seiko Epson excels, is important and essential technology for development in the field of mobile information equipment. We are looking forward with keen anticipation to further expansion of the market, as well as rapid progress in semiconductor technology that is the basis of the mobile information equipment, by the cooperative use of the remarkable technologies owned by the respective companies.

Transmeta is very pleased to announce this significant relationship with an established and respected technology leader like Seiko Epson, said Mark K. Allen, president and chief executive officer, Transmeta Corporation. We regard the patent rights to have substantial strategic value toward the development of Crusoe technology, and we are optimistic that this collaborative effort with Seiko Epson will contribute to the development of new energy saving computing technologies.