TranSwitch Ships Over 1 Million Mustang EPON ONU Chips

TranSwitch® Corporation (NASDAQ: TXCC), a leading provider of semiconductor solutions for the converging voice, data and video network, today announced that it has shipped over 1 million chips from its Mustang product family, a class of Ethernet passive optical network (EPON) protocol system-on-chips (SoC) for optical networking unit (ONU) applications. The Mustang devices provide the core functionality for the ONU equipment being deployed by Japan’s leading telecommunications service provider as part of its fiber-to-the-home (FTTH) strategy for offering triple-play (voice, internet and television) services.

"We are pleased to report this impressive milestone for our Mustang chips,” said Dr. Santanu Das, TranSwitch’s President and CEO. "The Mustang product family is integral to TranSwitch’s focus on offering a comprehensive platform of Access and Customer Premises Equipment (CPE) due to the high growth characteristics of this market segment. We look forward to leveraging our success in Japan as we accelerate the sales and marketing initiatives of our network edge products throughout Asia as well as other fast growing markets.”

The number of FTTH subscribers grew by 15% in the first six months of 2009, with more than 5.5 million new subscribers added worldwide, according to the latest update to the global ranking of FTTH economies, jointly issued by the three FTTH Councils of Asia-Pacific, Europe and North America. According to industry analysts at ABI Research in their report PON and Active Ethernet FTTH Deployments, 55% percent of the world’s homes that will make their broadband connection over FTTH will receive video services by 2011. This figure is up from the 4% in 2005. Japan and South Korea are ranked the highest in FTTH deployment, according to the report, with China possessing the greatest growth potential and one of the largest market opportunities. The build up of FTTH (and related deployments) in Europe has been growing with 120 new projects added in the last 6 months to a total of 233 projects at the end of June 2009, according to European telecom/IT consulting firm iDate.

Expanding TranSwitch’s end-to-end FTTH semiconductor portfolio, Mustang is a family of fully integrated, single chip, mixed-signal SoCs for gigabit EPON ONU applications. This family of highly-integrated and low power EPON ONU SoCs is ideal for service providers deploying next generation networks (NGN) which support premium triple play services such as bandwidth-intensive IPTV while meeting government targets for reduced power consumption. These products enable new capabilities for television entertainment including interactivity, integration with voice and data communications, and value-added services while maintaining the highest quality of service.

The Mustang ONU simplifies service provider deployments by supporting interoperability with a variety of vendor optical line terminals (OLT) and supporting full compliance with relevant standards including IEEE 802.3ah and the NTT gigabit EPON Gist specification to ensure error-free, low latency, bandwidth efficient data transmission. The Mustang product line, combined with TranSwitch’s Colt™ EPON OLT SoC and Atlanta™ 100 and 2000 communications processor families, reinforces TranSwitch’s market position as the only silicon vendor with complete, end-to-end EPON solutions for the "last mile.”

For more information about TranSwitch’s Mustang triple-play enabling solutions, please visit the Company’s website at www.transwitch.com.

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 9001:2000 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.

TranSwitch is a registered trademark of TranSwitch Corporation.