Major Chinese OEM Initiates Volume Production of WiMAX VoIP Terminals Based on TranSwitch (TXCC) Atlanta(TM) Processor

May 19, 2010 (Business Wire) — TranSwitch® Corporation (NASDAQ: TXCC), a leading provider of semiconductor solutions for the converging voice, data and video network, today announced that it has received pre-production orders from a leading Chinese Telecom OEM for its Atlanta™ 80 processor for use in its WiMAX VoIP terminal equipment. The first widespread deployments of the Atlanta™ based WiMax Fixed Wireless Terminals (FWT) will be in Asia and Europe where rollouts are expected to begin during the third quarter of 2010. Deployments follow several months of rigorous field testing of equipment under varying network conditions to ensure interoperability, quality and performance.

The adoption of WiMAX, a fourth generation wireless technology, is rapidly gaining momentum worldwide. According to a recent ABI Research report, 164 mobile WiMAX networks were in trial or commercial operation at the end of 2009, and the number of WiMAX subscribers is expected to grow from approximately 6 million in 2009 to over 30 million by 2011.

“We are delighted to have been selected by our major customer as the vendor of choice for their WiMAX VoIP terminal deployments. The fast growing VoIP market presents strategic growth opportunities for TranSwitch,” said Dr. M. Ali Khatibzadeh, President and CEO of TranSwitch. “Our Atlanta™ and Entropia™ product families offer best-in-class performance in terms of voice quality, power consumption and packet processing in the industry,” concluded Dr. Khatibzadeh.

TranSwitch’s Atlanta™ 80 is well positioned for network deployments worldwide. Last year, Korea’s fastest growing broadband operator, SK Broadband, deployed over a million DECT VoIP terminals based on the Atlanta™ processor. Other service providers are also conducting trials of Atlanta™ 80 based equipment for their networks.

“Atlanta™’s dedicated and optimized VoIP DSPbased technology enables WiMAX terminals to provide consistently high voice quality even under high internet data traffic conditions,” said Mr. Kris Shankar, VP of Sales and Marketing at TranSwitch. “The selection of Atlanta™ in these deployments is a testament to TranSwitch’s leadership in VoIP technology.” Mr. Shankar continued, “With an integrated Digital Signal Processor (DSP) optimized for VoIP, the Atlanta™ 80 product can simultaneously support 100 Mbps wire-speed routing with Network Address Translation (NAT), Security, WiFi, T38 Fax and up to eight voice channels while maintaining excellent voice quality. We are uniquely architected to deliver all these features with little to no impact on overall performance.”

About TranSwitch Corporation

TranSwitch Corporation (Nasdaq: TXCC) designs, develops and markets innovative semiconductors and technologies that provide core functionality and complete solutions for voice, data and video communications network equipment. As a leading supplier to telecom, datacom, cable television and wireless markets, TranSwitch customers include the major OEMs that serve the worldwide public network, the Internet, and corporate Wide Area Networks (WANs). TranSwitch devices are inherently flexible; many incorporating embedded programmable microcontrollers to rapidly meet customers’ new requirements or evolving network standards by modifying a function via software instruction. TranSwitch implements global communications standards in its VLSI solutions and is committed to providing high-quality products and services. TranSwitch, Shelton, CT, is an ISO 9001 registered company. For more information, visit www.transwitch.com.

Forward-looking statements in this release, including statements regarding management’s expectations for future financial results and the markets for TranSwitch’s products, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements regarding TranSwitch, its operations and its financial results involve risks and uncertainties, including without limitation risks associated with acquiring new businesses; of downturns in economic conditions generally and in the telecommunications and data communications markets and the semiconductor industry specifically; risks in product development and market acceptance of and demand for TranSwitch’s products and products developed by TranSwitch’s customers; risks relating to TranSwitch’s indebtedness; risks of failing to attract and retain key managerial and technical personnel; risks associated with foreign sales and high customer concentration; risks associated with competition and competitive pricing pressures; risks associated with investing in new businesses; risks of dependence on third-party VLSI fabrication facilities; risks related to intellectual property rights and litigation; risks in technology development and commercialization; and other risks detailed in TranSwitch’s filings with the Securities and Exchange Commission.