The attacker/thief cools down the RAM with liquid nitrogen (to slow the discharge), inserts a bootable CD with a special tool to dump physical RAM on bootup, and quickly cycles the laptop battery (causing a cold boot).
Since the RAM is not zeroed on bootup, the "old" bits stay pretty much as they were (thanks to the cooling).
IIRC this allowed an attacker recovery of the key with a very high probability of success.