TranSwitch Corporation Announces a Workforce Reduction and Other Cost Savings Initiatives

SHELTON, CT – February 1, 2010 - TranSwitch Corporation (NASDAQ: TXCC) a leading provider of semiconductor solutions for the converging voice, data and video network, today announced that it recently effected a restructuring to be implemented and concluded during the first quarter of 2010. This workforce reduction primarily affects personnel based in Fremont, California, New Delhi and Bangalore, India and Shelton, Connecticut.

TranSwitch expects that these restructuring actions and other cost reduction initiatives will result in annual savings of approximately $4.0 million, and that these savings will begin to be recognized in first quarter of 2010. Of this amount, TranSwitch expects annual savings of approximately $2.4 million in reduced employee related costs including base salary reductions and $1.6 million from other cost savings initiatives.

In connection with the restructuring, TranSwitch expects to incur pre-tax restructuring charges of approximately $1.4 million which will be cash expenditures primarily for employee related costs. The Company expects these charges to be recorded in the first quarter of 2010.

“As we stated in our announcement last December, we are committed to taking the necessary actions to reduce the Company’s operating expenses to ensure profitability,” stated Mr. Robert Bosi, Vice President and Chief Financial Officer of TranSwitch Corporation. “More details will be provided during the Company’s fourth quarter earnings announcement on February 11, 2010.”