TranSwitch Completes Licensing Agreements Totaling $4 Million

  TranSwitch Completes Licensing Agreements Totaling $4 Million

Business Wire

SHELTON, Conn. -- December 05, 2012

TranSwitch Corporation (NASDAQ: TXCC), a leading provider of semiconductor
solutions in the rapidly growing consumer electronics and telecommunications
markets, today announced the recent completion of two licensing agreements
with major network equipment OEMs for a combined amount of approximately $4
million. The agreements provide for the licensing of proprietary software
enabling critical voice-over-IP gateway (VoIP gateway) functionality. The two
contracts include software licenses, consulting, and training. Most of the
proceeds from the announced IP contracts are expected to be collected in the
current (fourth) quarter.

“The licensed software is the product of many years of development and
deployment in major telecom carriers and enables our licensees to continue
future upgrades and investment in their Voice-over-IP products. As part of
this arrangement, TranSwitch will continue to supply its telecom IC products,”
said Dr. Ali Khatibzadeh, president and CEO of TranSwitch. “We are currently
pursuing additional licensing opportunities with other telecom customers and I
am pleased with the progress we are making in licensing both our telecom
software and our High Speed Interconnect Intellectual Property cores. In
addition, we are making solid progress in marketing our telecommunication
patent portfolio which should yield a successful outcome.”

About TranSwitch Corporation

TranSwitch Corporation (Nasdaq: TXCC)provides innovative integrated circuit
(IC) and intellectual property (IP) solutions that deliver core functionality
for video, voice, and data communications equipment for the customer premises
and network infrastructure markets. For the customer-premises market, we offer
multi-standard, high-speed interconnect solutions enabling the distribution
and presentation of high-definition (HD) video and data content for consumer
electronics applications. We also provide a family of best-in-class
communications processors. For the network infrastructure market we provide
integrated multi-core network processor System-on-a-Chip (SoC) solutions for
Fixed, 3G and 4G Mobile, VoIP and Multimedia applications. TranSwitch’s
customers are leading consumer electronics and telecom equipment companies
around the globe. To learn more, please visithttp://www.transwitch.com or
follow us on Facebook or Twitter.

Safe Harbor Statement

This press release may contain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. All forward-looking
statements are subject to certain risks, uncertainties and assumptions. These
risks and uncertainties, which are more fully described in TranSwitch’s Annual
and Quarterly Reports filed with the Securities and Exchange Commission,
include changes in market conditions in the industries in which the Company
operate and risks in product development and market acceptance of and demand
for TranSwitch’s products and products developed by TranSwitch’s customers.
Should one or more of these risks or uncertainties materialize, or should the
assumption prove incorrect, actual results may vary in material aspects from
those currently anticipated.

Contact:

Media Relations
Mspire Group
Brian Ribeiro, +1 908-369-9300 X100
bribeiro@mspiregroup.com
or
Investor Relations
TranSwitch Corp.
Mary Lombardo, +1 203-929-8810 X2254
mary.lombardo@transwitch.com
 
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