TranSwitch Corporation Provides Revised Guidance Regarding Fourth Quarter Results and Announces Extension to Agreement To Sublease Office Space

SHELTON, CT – January 6, 2012 ─ TranSwitch Corporation (NASDAQ: TXCC), a leading provider of semiconductor solutions for the converging voice, data and video network, today announced that it now expects its fourth quarter 2011 revenue to be roughly $6.3 million compared to the guidance provided on November 1, 2011 of roughly $7 million principally due to a contractual dispute on a service agreement with a North America customer. The Company expects to report complete fourth quarter and full year 2011 financial results in early February 2012 and will announce details when they are available.

“We continue to make progress on our strategic plan of creating value through innovative products for HD multimedia connectivity and processing,” said Dr. M. Ali Khatibzadeh, President & CEO of TranSwitch. “With the introduction of HDwire™, the fastest video transport technology for flat-panel displays, TranSwitch substantially increases its addressable market.”