Transitive are the guys who designed Rosetta, the PPC->x86 translator in MacOS X, it works rather well... But the PPC and the x86 are quite similar chips, the Itanium is a bit more difficult... code optimised for the PPC will be dog slow on the Itanium.
Anyway since, intel is now looking for someone to buy the Itanium project (that's right they want to get rid of it), I suggest this is just a little token gesture to make the Itanium look a bit more attractive potential buyers.