First OSDL Fellow Will Devote Himself Exclusively to Linux Development

BEAVERTON, OR, and SANTA CLARA, CA, June 17, 2003 OSDL, a non-profit,
global consortium of leading technology companies dedicated to
accelerating the adoption of Linux, and Transmeta Corporation (Nasdaq:
TMTA), the leader in efficient computing, today announced that Linus
Torvalds, the creator of Linux, will join OSDL as the first OSDL Fellow.

As an OSDL fellow, Linus will work exclusively on leading the
development of Linux, the open source software that he created in 1991
as a university student in Finland. Torvalds will dedicate himself now
full-time to guiding a distributed team of thousands of Linux developers
around the world. At OSDL, he will have hands-on access to its
state-of-the-art computing resources and test facility. He will also
help set priorities and direction for the Lab's different industry
initiatives.

"It feels a bit strange to finally officially work on what I've been
doing for the last twelve years, but with the upcoming 2.6.x release it
makes sense to be able to concentrate fully on Linux," Torvalds said. 
"OSDL is the perfect setting for vendor-independent and neutral Linux
development."

Founded in 2000, OSDL has data centers in Portland, Oregon and Yokohama,
Japan used by Linux developers around the world. With investment backing
from Computer Associates, Fujitsu, Hitachi, HP, IBM, Intel, NEC and
others, the lab sponsors key industry projects, including industry
initiatives to enhance Linux for use in corporate data centers (Data
Center Linux) and in telecommunications networks (Carrier Grade Linux). 
OSDL is increasingly being recognized as the center-of-gravity for the
Linux industry: an important and independent central body that invests
in the growth and innovation of Linux for the benefit of customers.

"OSDL is a leading Linux-industry advocate with the single-minded focus
of accelerating its use throughout the enterprise," said Stuart Cohen,
OSDL CEO. "Linus' decision to join us is a confirmation of the
importance of our mission. OSDL is the only organization where Linux
developers, customers and vendors can all participate as equals. The
addition of Linus' perspective and guidance to the Lab will enhance our
value to all three of these groups."

Linux is the fastest-growing operating system in the world. Revenue for
Linux-based servers grew 62% in 2002, while overall sales of servers
dropped 8%, according to Gartner Dataquest, a market research company. 
By 2007, Gartner predicts that Linux may grab 15% of the worldwide
market.

"Linus Torvalds adds tremendous credibility to OSDL's efforts to drive
the evolution of Linux forward into enterprise computing and carrier
environments," said George Weiss, vice president and research director
for the research firm Gartner. "The computing market is still
questioning how far and how fast Linux can go as an enterprise-ready
platform. With Linus at OSDL, many will be looking for leadership from
the lab for answers to those questions."

Torvalds will join OSDL on leave from Transmeta Corporation, where he is
currently a Transmeta Fellow. Transmeta is an OSDL member and worked
with OSDL on the transition. "Linus has made substantial technological
contributions as a member of our development team here at Transmeta,"
said Matthew R. Perry, president and CEO, Transmeta Corporation. 
"Transmeta appreciates and fully supports Linus' strong interest in
devoting his attention and energy to certain emerging industry-wide Open
Source initiatives at OSDL."

About OSDL

Founded in 2000, OSDL is dedicated to accelerating the growth and
adoption of Linux in the enterprise. Supported by a global consortium of
IT industry leaders, OSDL provides state-of the-art computing and test
facilities in the United States and Japan available to developers around
the world. OSDL sponsors include Alcatel, Cisco, Computer Associates,
Dell, Ericsson, Force Computers, Fujitsu, HP, Hitachi, IBM, Intel,
Linuxcare, Miracle Linux Corporation, Mitsubishi Electric, MontaVista
Software, NEC Corporation, Nokia, Red Hat, SuSE, TimeSys, Toshiba,
Transmeta Corporation and VA Software. The Lab is headquartered near
Portland, Oregon. Visit OSDL on the Web at www.osdl.org.

About Transmeta Corporation

Transmeta Corporation develops and sells software-based microprocessors
and develops additional hardware, software and system technologies that
enable manufacturers to build highly efficient computing systems
characterized by low power consumption, reduced heat dissipation and the
high performance required to run standard x86 compatible programs. We
originally developed our family of Crusoe microprocessors for
lightweight notebook computers and other mobile computing devices, but
we have developed and are continuing to develop microprocessors suitable
for a variety of existing and emerging end markets in which x86 program
compatibility and energy and thermal efficiency are desirable. To learn
more about Transmeta, visit www.transmeta.com.

OSDL is a trademark of Open Source Development Labs, Inc. Transmeta is a
trademark of Transmeta Corporation. Linux is a trademark of Linus
Torvalds. Third party marks and brands are the property of their
respective holders.

For more information contact:
OSDL:
Doug Kolb
Marketing Manager
Phone: 503.626.2455 ext. 15
Mobile: 503.803.2471
e-Mail: doug@osdl.org

Craig Oda
Page One PR
650.473.0600 x999
650.218.9235
coda@pageonepr.com

Transmeta:
Arthur L. Swift
Senior Vice President of Marketing
Phone: 408.919.5921