TranSwitch Corporation Receives Nasdaq Minimum Bid Price Non-Compliance Letter

  TranSwitch Corporation Receives Nasdaq Minimum Bid Price Non-Compliance
  Letter

Business Wire

SHELTON, Conn. -- December 06, 2012

TranSwitch Corporation (Nasdaq: TXCC) (the “Company”), a leading provider of
semiconductor solutions for the converging voice, data and video network,
today announced that it received a letter on December 4, 2012, from the Nasdaq
Capital Market indicating that the Company no longer meets the minimum bid
price requirement for continued listing on the Nasdaq Capital Market as set
forth in Nasdaq Listing Rule 5550(a)(2) (the “Rule”). The notice stated that
the bid price of the Company's common stock has closed below the required
minimum $1.00 per share for the previous 30 consecutive business days. The
Nasdaq notice has no immediate effect on the listing of the Company's common
stock.

In accordance with Nasdaq rules, the Company has 180 calendar days to regain
compliance with the Rule. If at any time before June 3, 2013, the bid price of
the Company’s common stock closes at $1.00 per share or higher for a minimum
of 10 consecutive business days, Nasdaq will notify the Company that it has
regained compliance with the Rule.

In the event the Company does not regain compliance with the Rule prior to
June 3, 2013, Nasdaq will notify the Company that its securities are subject
to delisting. However, the Company may be eligible for additional time. To
qualify, the Company will be required to meet the continued listing
requirement for market value of publicly held shares and all other initial
listing standards for the Nasdaq Capital Market, with the exception of the bid
price requirement, and will need to provide written notice of its intention to
cure the deficiency during the second compliance period. If such application
to the Nasdaq Capital Market is approved, then the Company may be eligible for
an additional grace period. However, if it appears to Nasdaq that the Company
will not be able to cure the deficiency, or if the Company is otherwise not
eligible, Nasdaq will provide notice that the Company’s securities will be
subject to delisting. The Company may, at that time, appeal the Nasdaq
determination to a Nasdaq Hearing Panel. Such an appeal, if granted, would
stay delisting until a Panel ruling.

The Company is considering actions that it may take in response to this
notification in order to regain compliance with the continued listing
requirements.

About TranSwitch Corporation

TranSwitch Corporation (TXCC) designs, develops and supplies innovative
integrated circuit (IC) and intellectual property (IP) solutions that provide
core functionality for voice, data and video communications equipment for
network, enterprise and customer premises applications. We provide integrated
multi-core network processor System-on-a-Chip (SoC) solutions and software
solutions for Fixed, 3G and 4G Mobile, VoIP and Multimedia Infrastructures.
For the customer-premises market, we offer interoperable connectivity
solutions that provide a bridge between HDMI and DisplayPort and enable the
distribution and presentation of high-definition (HD) content for consumer
electronic and personal computer markets and also provide a family of
communications processors that provide best-in-class performance for a range
of applications. Overall, we have over 100 active customers, including the
leading global telecom equipment providers, semiconductor and consumer product
companies. For more information, please visit www.transwitch.com.

TranSwitch Forward Looking Statements

Forward-looking statements in this release, including statements regarding
management's expectations for future financial results and the markets for
TranSwitch's products, if any, 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 that
could cause actual results to differ materially from those contained in the
forward-looking statements, including without limitation the risks associated
with 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
associated with foreign sales and high customer concentration; risks
associated with competition and competitive pricing pressures; risks in
technology development and commercialization; risks of failing to attract and
retain key managerial and technical personnel; risks relating to TranSwitch’s
available cash; risks associated with acquiring new businesses; risks of
dependence on third-party VLSI fabrication facilities; risks related to
intellectual property rights and litigation; and other risks detailed in
TranSwitch's filings with the Securities and Exchange Commission.

TranSwitch expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any such statements to reflect any change
in expectations or any change in events, conditions or circumstances on which
any such statement is based.

TranSwitch is a registered trademark of TranSwitch Corporation.

Contact:

TranSwitch Corporation
Robert A. Bosi, 203-929-8810, ext. 2465
Vice President and Chief Financial Officer
or
Mary Lombardo, 203-929-8810, ext. 2254
Investor Relations