Press Release:

HP Taps Transmeta to Power New Tablet PC

Ultra-mobile Compaq Evo Tablet PC Combines Simplicity of Paper with Power of PCx

HP (NYSE:HPQ), continuing its leadership in the design and development of mobile computing products, today announced a relationship with Transmeta Corporation (Nasdaq:TMTA) to use Transmeta's 1 GHz Crusoe TM5800 processors to power HP's forthcoming Compaq Evo Tablet PC.

Comparable in size to a pad of paper, the device is a fully compatible Windows® XP PC that allows users to write directly on the screen. With this innovative ability, common business tasks are made more efficient -- such as taking handwritten notes in a meeting for later reference or conversion to text; annotating documents or presentations using digital ink; or easily reading electronic magazines or books.

"When designing the Tablet PC we needed a high-performance processor that delivered the capability business users expect, but also put a premium on battery life," said Ted Clark, vice president of new notebook markets, HP Personal Systems Group. "Transmeta's Crusoe TM5800 processor will help HP deliver a sleek, comfortable, lightweight Tablet PC that will allow business users to increase productivity in today's ever-changing business environment."

"HP is known within the industry as a birthplace of invention and the Tablet PC is another example of the innovation and leadership they bring to the mobile market," said Matthew Perry, president and chief executive officer, Transmeta Corporation. "Crusoe's power efficiency attributes are enabling mobile systems, such as the Compaq Evo Tablet PC, that require long battery life and minimal weight with cool, quiet operation."

The two companies also are collaborating on product development and testing of the Tablet PC, as well as joint-marketing activities and technical support of lab and field tests.

HP intends to introduce the Compaq Evo Tablet PC later this year at the launch of Microsoft's Windows XP Tablet PC Edition. Additional information on the Compaq Evo Tablet PC is available at

About Transmeta Corporation

Transmeta develops and sells software-based microprocessors and develops additional hardware and software technologies that enable computer manufacturers to build computers that simultaneously offer long battery life, high performance and x86 compatibility. Transmeta's family of Crusoe microprocessors is targeted at the notebook, Tablet PC and Internet appliance segments of the mobile Internet computer market, as well as a range of embedded applications. For more information visit

About HP

HP is a leading global provider of products, technologies, solutions and services to consumers and businesses. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. HP merged with Compaq Computer Corp. on May 3, 2002. The merged company had combined revenue of approximately $81.7 billion in fiscal 2001 and operations in more than 160 countries. More information about HP is available at

Transmeta and Crusoe are trademarks and/or registered trademarks of Transmeta Corporation in the United States and/or other countries.

Microsoft and Windows are U.S. registered trademarks of Microsoft Corp.

This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries and/or Transmeta to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include employee management issues; the timely development, production and acceptance of products and services and their feature sets; the challenge of managing asset levels, including inventory; the flow of products into third-party distribution channels; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks that are described from time to time in HP's or Transmeta's Securities and Exchange Commission reports, including but not limited to HP's annual report on Form 10-K, as amended on January 30, 2002, for the fiscal year ended October 31, 2001, HP's quarterly report on Form 10-Q for the quarter ended January 31, 2002 (as filed with the SEC on March 12, 2002) and subsequently filed reports. For a description of additional risk factors associated with the financial and operating results of Transmeta, see Transmeta's most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 10, 2002 and other reports filed by Transmeta with the Securities and Exchange Commission. HP and Transmeta assume no obligation and do not intend to update these forward-looking statements.

About HP

HP Inc. creates technology that makes life better for everyone, everywhere. Through our portfolio of printers, PCs, mobile devices, solutions, and services, we engineer experiences that amaze. More information about HP Inc. is available at