Transmeta has entered into an agreement to allow Chinese 2000 Holdings to develop and market Transmeta's Midori Linux distribution, for mobile and embedded devices, in China and other countries in the Asia-Pacific region.

The agreement gives Transmeta an equity ownership in Chinese 2000 Holdings and a multi-year profit sharing arrangement.

Transmeta develops and sells software-based microprocessors and develops additional hardware, software and system technologies to build computing systems characterised by low power consumption, reduced heat dissipation and the performance needed to run standard x86 compatible programs.

Transmeta introduced Midori Linux in March 2001 as an option for devices requiring Linux compatibility, energy efficiency, low thermals and a small form factor.

The agreement on Midori Linux development and marketing will focus on China, Hong Kong, Macau and Taiwan.