TranSwitch Corporation Positioned for Growth in Asia Following Multiple Atlanta 100 Production and Design Wins

TranSwitch® Corporation (NASDAQ: TXCC), a leading provider of semiconductor solutions for the converging voice, data and video network, today announced the selection of its Atlanta 100 family of communications processors for use in service gateway and other customer premises equipment (CPE) being deployed throughout Asia, where national and emerging carriers are actively competing for customers with offerings of bundled services. The awards have results in new production of the processors as well as opportunities for additional quantities upon the commencement of marketing initiatives by leading national carriers. CPE powered by Atlanta processors enable broadband services including voice-over-Internet Protocol (VoIP) phone service, one of the fastest growing forms of communication, so that customers can benefit from the convenience and traditionally lower cost of bundled Internet access, data services and phone service.

In South Korea, SK Telesys is using the Atlanta 100 product family in its CPE for SK Broadband’s roll-out of its Broad&Fone VoIP service to residential, small office and home office (SoHo), and small to medium-sized business (SMB) customers throughout the country. TranSwitch previously announced that its Atlanta processors had been selected by SK Telesys for use in its residential CPE product, the IF-100 Digital Enhanced Cordless Telecommunications (DECT) phone with cordless handset support. SK Telesys has now awarded to TranSwitch a design-win for the IF-200 DECT phone that is targeted at SoHo and SMB applications which require one cordless handset and FAX support. The Atlanta 100 processor family has also been designed into the Alpha project DECT phone for SK Telesys, which supports three cordless handsets as well as FAX support. The IF-100, IF-200 and Alpha project VoIP-DECT phones are manufactured for SK-Telesys by INBRICS (formerly Navons). SK Broadband (formerly Hanaro Telecom) is the fastest growing broadband service provider in South Korea, serving approximately four million broadband subscribers.

"Simply put, the Atlanta product family provides the best cost to performance ratio of any product in its class. This, along with TranSwitch’s exceptional level of support, is the primary reason why we have chosen to continue to use TranSwitch’s Atlanta 100 product family for all of our CPE products” said Y.S Huh, Sr. Marketing Team Manager of SK Telesys.

TranSwitch also announced today that its Atlanta 100 product family has gained momentum in other fast growing Asian markets. In China, a broad range of CPE products such as Media Terminal Adapters (MTA) and 3G Wireless Home Gateways have been designed by equipment suppliers for deployment in the wire-line and wireless networks of major domestic carriers. Similar developments are underway in India. One of the fastest growing broadband network operators in India is planning to roll out voice and data services using a range of CPE equipment based on TranSwitch’s Atlanta 100 processor family. These new and follow-on design wins demonstrate the versatility, performance, and quality of the Atlanta 100 product family as well as the professional and focused support that TranSwitch provides to its customers.

"We are gaining significant traction in select high growth markets in Asia, where competition to provide bundled services has led to TranSwitch receiving several production awards and design wins. Our Atlanta product family is uniquely designed to address carriers’ need to add revenues and customers, while keeping service provisioning and maintenance costs to a minimum,” said Kris Shankar, VP of Sales and Marketing for TranSwitch. Mr. Shankar continued, "With the Atlanta 100 product family’s unique integrated Digital Signal Processor (DSP) architecture, the processing of data at high rates doesn’t impact voice quality. Likewise, the support of multiple voice channels doesn’t impact data throughput capacity. As a result, the Atlanta 100 product family can simultaneously support 100 Mbps wire-speed routing with Network Address Translation (NAT) and one to eight low bit rate voice channels with no degradation in 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.

About SK Group

SK Broadband (formerly Hanaro Telecom) is Korea's second largest fixed-line telephone and Internet carrier behind leader KT Corporation. The company provides traditional phone service and broadband connections to residential and business customers throughout the country. SK Broadband also offers leased line and network security services for businesses. Other operations include Internet television and video-on-demand programming offered by subsidiary Broadband Media. Another subsidiary, Broadband TS, provides telemarketing services for businesses. SK Broadband is a subsidiary of SK Telecom. SK Broadband and SK Telesys are members of the SK Group, Korea's third largest conglomerate and one of the leading business organizations in Asia. SK Group is made up of 40 member companies including seven that are listed on the Korea Stock Exchange.

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.

TranSwitch is a registered trademark of TranSwitch Corporation.