TranSwitch Corporation Announces the First Licensing of its DisplayPort Transceiver IP by One of the World's Leading Semiconductor Companies

SHELTON, CT – October 29, 2008 – TranSwitch® Corporation (NASDAQ: TXCC), a leading provider of semiconductor solutions for the converging voice, data and video network, today announced it has signed a new multi-year, royalty bearing licensing agreement with one of the world’s largest semiconductor companies that is planning to incorporate TranSwitch’s DisplayPort technology inside multiple proprietary products over many years. This agreement potentially includes a number of different TranSwitch intellectual property cores in the area of video transport. The deal includes multiple upfront license fee arrangements and multiple royalty streams, and total revenue from this deal is expected to average over $1 million per year.

TranSwitch has developed a family of products for video transport, including HDMI™ 1.3, DisplayPort, as well as dual mode products supporting both standards. Earlier this year, the company announced an HDMI licensing agreement and is now proud to announce its first DisplayPort licensing agreement. The company also anticipates introducing further new products in this area going forward.

Both HDMI and DisplayPort will coexist as important new high definition video transport standards. HDMI, which stands for High Definition Multimedia Interface, is expected to be the dominant consumer electronics video transport standard. DisplayPort, which is backed by an industry consortium including Intel, Dell and Hewlett Packard, among others, is expected to the dominant standard for PCs. According to iSuppli, the industry will ship 340 million HDMI ports in 2009, a figure that is expected to grow to 770 million by 2012. DisplayPort is expected to ship 27 million ports in 2009, growing to 263 million ports in 2012.

TranSwitch HDMI and DisplayPort technology is built upon technology acquired through the Mysticom acquisition in 2006 and features a fourth generation serializer/deserializer with industry leading performance. “Our unique signal integrity controls and adaptive equalizer, which have been well tested over the years, position us to be a market leader in the large and rapidly growing video transport market,” said Amir Bar-Niv, Vice President for Systems and Applications at TranSwitch Corporations. “With our technology, consumers will get a better video experience while also diminishing the importance of cable quality, currently one of the significant expense items in a high definition video system.”

Dr. Santanu Das, president and CEO of TranSwitch Corporation, said, "This is a landmark achievement for TranSwitch; this adoption validates TranSwitch technology in this area as truly world-class.”

TranSwitch provides a comprehensive package of deliverables to assist customers through all phases of development, design integration and manufacturing of their Systems-on-Chips (SoCs). This package includes a development platform, as well as all documentation and models of the IP, which allows customers to easily integrate the TranSwitch IP cores into complex SoC designs so they can get to market more quickly. Additionally, TranSwitch will provide comprehensive support and training to developers utilizing TranSwitch technology