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03/28/02 8:36 AM

#869 RE: weaksidehelp #868

Well, no it is correct. But I wouldn't give to much on the formulation. Basically, what this is about is to create a infinite loop of increasing the shares outstanding if somebody tries to aquire the company. So basically it becomes impossible to aquire Transmeta and nobody would try a hostile takeover. The only way to aquire is to have a deal with the management to get rid of the poison pill and to make a takeover bid, however, to have such a poison pill or shareholder rights will increase our negotiation power and therefore result in higher takeover bids.

However, I have no doubt that our management has no intention to sell this company...