TranSwitch Corporation Announces Closing of Steinhardt Equity Investment

  TranSwitch Corporation Announces Closing of Steinhardt Equity Investment

Business Wire

SHELTON, Conn. -- August 22, 2013

TranSwitch Corporation (OTCQB:TXCC), a leading provider of semiconductor
solutions in the rapidly growing consumer electronics and telecommunications
markets, today confirmed the closing of its previously announced $2.5 million
equity investment from Ilex Partners, LLC (“Ilex”), managed by Mr. Michael
Steinhardt.

“We welcome this new equity investment by our largest shareholder, a legendary
investor, and appreciate the confidence he has placed in our company’s new
direction,” stated Dr. M. Ali Khatibzadeh, President and CEO of TranSwitch
Corporation. “This equity investment comes at a critical juncture of the
company’s transformation and will have a significant impact on the growth of
our new video connectivity business without taking on debt.” As previously
announced, the Company also granted to Ilex the right to make a further equity
investment of $ 2.5 million within six months.

Proceeds from this transaction will be used for general corporate and working
capital purposes.

About TranSwitch Corporation

TranSwitch Corporation (OTCQB: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. For more information, please 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 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.

Contact:

For more information:
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