The stock split will take effect at 23:59 Eastern time on 23 November 2009 and was authorised by stockholders at its annual meeting in May 2009.

The company had initially been notified by NASDAQ on 28 January 2008 that its common stock bid price had closed under USD1.00 per share for the prior 30 consecutive business days.

TranSwitch's application to list common stock on The NASDAQ Capital Market was approved on 30 July 2008. However NASDAQ's enforcement of the bid price and market value of publicly held shares as required pursuant to NASDAQ Marketplace Rule 4450(a)(5) between 22 October 2008 and 31 July 2009 was suspended, giving the company time till 6 November 2009 to regain compliance and failing which, NASDAQ decided to de-list its securities on 16 November 2009.

The company stated it has filed the required appeal of the Staff's determination to a NASDAQ Hearings Panel under the procedures set forth in the NASDAQ Marketplace Rule 5800 Series. This will stay the delisting of securities pending the decision and if granted, the implementation of its stock split will provide the company with the opportunity to be in compliance by early December.

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The stock split will take effect at 23:59 Eastern time on 23 November 2009 and was authorised by stockholders at its annual meeting in May 2009.

The company had initially been notified by NASDAQ on 28 January 2008 that its common stock bid price had closed under USD1.00 per share for the prior 30 consecutive business days.

TranSwitch's application to list common stock on The NASDAQ Capital Market was approved on 30 July 2008. However NASDAQ's enforcement of the bid price and market value of publicly held shares as required pursuant to NASDAQ Marketplace Rule 4450(a)(5) between 22 October 2008 and 31 July 2009 was suspended, giving the company time till 6 November 2009 to regain compliance and failing which, NASDAQ decided to de-list its securities on 16 November 2009.

The company stated it has filed the required appeal of the Staff's determination to a NASDAQ Hearings Panel under the procedures set forth in the NASDAQ Marketplace Rule 5800 Series. This will stay the delisting of securities pending the decision and if granted, the implementation of its stock split will provide the company with the opportunity to be in compliance by early December.

Comments on this story may be sent to admin@m2.com

TranSwitch had initially been notified by NASDAQ on January 28, 2008 that the bid price of its common stock had closed at less than $1.00 per share over the previous 30 consecutive business days. On July 30, 2008, TranSwitch received notice from the Listing Qualifications Department of The NASDAQ Stock Market that its application to list common stock on The NASDAQ Capital Market was approved and its common stock began trading on the NASDAQ Capital Market on that date. As a result of suspensions by NASDAQ of enforcement of the bid price and market value of publicly held shares as required pursuant to NASDAQ Marketplace Rule 4450(a)(5) between October 22, 2008 and July 31, 2009, the Company had until November 6, 2009 to regain compliance. As TranSwitch has not regained compliance, the NASDAQ Staff has determined to delist its securities from the Capital Market.

Accordingly, unless TranSwitch requests an appeal of this determination, trading of its common stock will be suspended at the opening of business on November 16, 2009 and its common stock will be removed from listing and registration on The NASDAQ Stock Market. TranSwitch has filed the required appeal of the Staff's determination to a NASDAQ Hearings Panel ("Panel"), pursuant to the procedures set forth in the NASDAQ Marketplace Rule 5800 Series. A hearing request will stay the delisting of TranSwitch's securities pending the Panel's decision. Although there can be no assurances that the Hearings Panel will grant such request, TranSwitch anticipates that, if granted, the implementation of its announced reverse stock split will provide the Company with the opportunity to be in compliance with the Marketplace Rule by early December.

About TranSwitch Corporation

TranSwitch Corporation (NASDAQ:TXCC) designs, develops and markets innovative semiconductors and technologies that provide core functionality and complete solutions for voice, data and video communications network equipment. As a leading supplier to telecom, datacom, cable television and wireless markets, TranSwitch customers include the major OEMs that serve the worldwide public network, the Internet, and corporate Wide Area Networks (WANs). TranSwitch devices are inherently flexible, many incorporating embedded programmable microcontrollers to rapidly meet customers' new requirements or evolving network standards by modifying a function via software instruction. TranSwitch implements global communications standards in its VLSI solutions and is committed to providing high-quality products and services. TranSwitch, Shelton, CT, is an ISO 9001 registered company. For more information, visit www.transwitch.com.

Forward-looking statements in this release, including statements regarding management's expectations for future financial results, continued listing 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, including without limitation risks associated with acquiring new businesses; of 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 relating to TranSwitch's indebtedness; risks of failing to attract and retain key managerial and technical personnel; risks associated with foreign sales and high customer concentration; risks associated with competition and competitive pricing pressures; risks associated with investing in new businesses; risks of dependence on third-party VLSI fabrication facilities; risks related to intellectual property rights and litigation; risks in technology development and commercialization; and other risks detailed in TranSwitch's filings with the Securities and Exchange Commission.

TranSwitch is a registered trademark of TranSwitch Corporation.

SOURCE: TranSwitch Corporation

TranSwitch Corporation 
Robert A. Bosi 
Vice-President and Chief Financial Officer 
203-929-8810 ext. 2465 
Robert.Bosi@transwitch.com

For the purpose of identifying a recent reverse stock split, the Company's trading symbol will be temporarily changed from "TXCC" to "TXCCD" for a period of twenty trading days beginning November 24, 2009. The Company's trading symbol is expected to revert to TXCC on December 23, 2009.

As a result of the reverse stock split, each eight shares of TranSwitch's common stock that are issued and outstanding or held in treasury at the Effective Time will be automatically combined into one share, subject to the elimination of fractional shares as described below. The reverse stock split will affect all issued and outstanding shares of the Company's common stock, as well as shares of common stock underlying stock options and the Company's outstanding 5.45% Convertible Notes due 2011 that are outstanding immediately prior to the effective date of the reverse stock split. The total number of shares of common stock issued and outstanding will be reduced from approximately 160 million shares to approximately 20 million shares.

The Company's transfer agent, Computershare Trust Company (www.computershare.com), will act as exchange agent for the reverse stock split. Stockholders of record as of the Effective Time will receive a letter of transmittal providing instructions for the exchange of their stock certificates as soon as practicable following the reverse stock split. Stockholders who hold their shares in "street name" will be contacted by their banks or brokers with any instructions.

Stockholders who would otherwise hold fractional shares because the number of shares of common stock they hold before the reverse stock split is not evenly divisible by the reverse stock split ratio will be entitled to receive cash (without interest or deduction) in lieu of such fractional shares. Where shares are held in certificated form, stockholders must provide Computershare Trust Company with a properly completed and duly executed transmittal letter and surrender all old certificate(s), after which they will receive an amount equal to the proceeds attributable to the sale of such fractional shares following the aggregation and sale by Computershare Trust Company of all fractional shares otherwise issuable. Stockholders who hold their stock in "street name" should contact their brokers for further information regarding payment for fractional shares.

About TranSwitch Corporation:

TranSwitch Corporation (Nasdaq: TXCC) designs, develops and markets innovative semiconductors and technologies that provide core functionality and complete solutions for voice, data and video communications network equipment. As a leading supplier to telecom, datacom, cable television and wireless markets, TranSwitch customers include the major OEMs that serve the worldwide public network, the Internet, and corporate Wide Area Networks (WANs). TranSwitch devices are inherently flexible, many incorporating embedded programmable microcontrollers to rapidly meet customers' new requirements or evolving network standards by modifying a function via software instruction. TranSwitch implements global communications standards in its VLSI solutions and is committed to providing high-quality products and services. TranSwitch, Shelton, CT, is an ISO 9001 registered company. For more information, 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, including without limitation risks associated with acquiring new businesses; of 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 relating to TranSwitch's indebtedness; risks of failing to attract and retain key managerial and technical personnel; risks associated with foreign sales and high customer concentration; risks associated with competition and competitive pricing pressures; risks associated with investing in new businesses; risks of dependence on third-party VLSI fabrication facilities; risks related to intellectual property rights and litigation; risks in technology development and commercialization; and other risks detailed in TranSwitch's filings with the Securities and Exchange Commission.

TranSwitch is a registered trademark of TranSwitch Corporation.

SOURCE: TranSwitch Corporation

TranSwitch Corporation 
Robert A. Bosi 
Vice President and Chief Financial Officer 
203-929-8810 ext. 2465 
Robert.Bosi@transwitch.com