TranSwitch Corporation Provides Revised Guidance Regarding Fourth Quarter Results and Announces Extension to Agreement To Sublease Office Space

TranSwitch Corporation, a leading provider of semiconductor solutions for the converging voice, data and video network, today announced that it now expects its fourth quarter 2011 revenue to be in broad outline $6.3 million compared to the guidance provided on November 1, 2011 of approximately $7 million principally due to a contractual dispute on a service agreement with a North America customer. The Company expects to report complete fourth quarter and full year 2011 financial results in early February 2012 and will announce details when they are available.

We continue to make progress on our strategic plan of creating value through innovative products for HD multimedia connectivity and processing, said Dr. M. Ali Khatibzadeh, President & CEO of TranSwitch. With the introduction of HDwire", the fastest video transport research for flat-panel displays, TranSwitch substantially increases its addressable market.

TranSwitch Corporation designs, develops and supplies innovative semiconductor and intellectual property solutions that provide core functionality for voice, data and video communications equipment for network, enterprise and customer premises applications. Founded in 1988, TranSwitch® is headquartered in Shelton, CT. The Company provides integrated multi-core network processor System-on-a-Chip solutions and software solutions for fixed, 3G and 4G Mobile, VoIP (Voice over Internet Protocol) and Multimedia Infrastructures. For the customer premises market the Company offers a family of communications processors that provide best-in-class performance for a range of applications and as well provide interoperable connectivity solutions that enable the reliable distribution and presentation of high-definition content for consumer electronics and personal computer markets. Our intellectual property products are compliant with global industry standards just as HDMI and DisplayPort and as well feature our proprietary HDP" and AnyCable" technologies. For more information, please visit www.transwitch.com