TranSwitch Introduces Industry's First Programmable, Multi-Service Multi-Protocol Network Processor with CellBus Compatibility.

SHELTON, Conn.--(BUSINESS WIRE)--June 5, 1999--

"ASPEN" device extends CellBus(R) product family and

promises new heights in functionality and performance for

multi-service access systems

TranSwitch Corporation (NASDAQ:TXCC) has announced the introduction of ASPEN, the newest member, and fourth generation of, its CellBus(R) family of switching products for access applications.

The combination of programmability, a CellBus(R) switching fabric, and network processor functionality has produced ASPEN, a flagship Connectivity Engine(TM) from TranSwitch. ASPEN, with a powerful, RISC processor based hardware architecture, provides 622Mbps performance and directly supports CellBus(R) operation in both cell & packet modes. ASPEN functionality is determined by upgradeable microcode that is downloaded into on-chip instruction memory. This architectural approach allows the flexibility of ASPEN to address many multi-service, multi-protocol applications such as full ATM layer processing, voice over IP (VoIP) and voice over ATM (VToA) gateway functions, ATM adaption layer 2 (AAL2) trunking, Frame Relay and TCP switching, simply by installing alternative ASPEN microcode programs. ASPEN is the only device in the industry that can support CellBus(R) switching, traffic processing and service interworking in a single programmable VLSI device.

"A Multi-Service Gateway supplies the local access to a regional broadband network. These systems are required to provide port and data concentration from many low-speed lines into a single higher bandwidth pipe. Additional requirements on these systems are the provision of new data and interworking services while maintaining the support for legacy services and protocols." stated Ian Ramsden, Director of Strategic Marketing at TranSwitch. "ASPEN creates a new value proposition for the industry by extending the CellBus(R) architecture to form a distributed processing and switching environment that can directly implement multi-service network functionality for TDM, packet and ATM cell based traffic.

"With features such as ATM traffic management being provisioned in the device microcode, enhancing scheduling algorithms, queuing methods or adding service classes is a simple matter of downloading new code into ASPEN. This ability to upgrade functionality and track standards changes through microcode upgrades presents a significant set of advantages to our customers."

ASPEN is initially available with "ATM AccessEDGE(TM)" a fully featured microcode program that supports the full ATM switching, buffering and ATM layer processing requirements of an ATM edge system such as an access multiplexer or DSLAM. TranSwitch expects to subsequently offer other AccessEDGE microcode products in addition to a complete ASPEN development environment. The development of custom ASPEN microcode will enable both customers and third party developers to add value-added functions and further extend the range of applications covered by ASPEN.

ASPEN is designed in an advanced 0.25 micron CMOS process and will be sampling in 3Q99 with production quantities expected by the end of the year. ASPEN is priced at US$150 in quantities of 10,000 units.

CellBus(R) is a TranSwitch patented technology for implementing low-cost access systems covering ATM cell, packet and voice switching applications. Over 40 customers worldwide have adopted CellBus(R) technology, including the top 5 global Telecom suppliers. In addition to the CellBus(R) family, TranSwitch has a complete range of products that serve the access market and complement ASPEN, including the announced PHAST-3 and PHAST-12 SONET/SDH overhead processors which support cell, packet and PDH transport over OC-3 and OC-12 fiber connections.

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including without limitation risks of dependence on third-party VLSI fabrication facilities, intellectual property rights, and litigation; risks in technology development and commercialization; risks in product development and market acceptance of and demand for the company's products; risks of downturns in economic conditions generally and in the telecommunications and data communications markets and the semiconductor industry specifically; risks associated with competition and competitive pricing pressures; risks associated with foreign sales and high customer concentration; and other risks detailed in the Company's filings with the Securities and Exchange Commission.

TranSwitch Corporation, headquartered in Shelton, Connecticut, is a leading developer and global supplier of innovative high-speed VLSI semiconductor solutions - Connectivity Engines TM - to original equipment manufacturers who serve three fast-growing end-markets: the Worldwide Public Network Infrastructure, the Internet Infrastructure and corporate Wide Area Networks (WANs). Combining its in-depth understanding of applicable global communication standards and its world-class expertise in semiconductor design, TranSwitch Corporation implements communications standards in VLSI solutions which deliver high levels of performance. Committed to providing high quality products and service, TranSwitch is ISO 9001 registered. Detailed information on TranSwitch products, news announcements, seminars, service and support is available on TranSwitch's home page at the World Wide Web site - http://www.transwitch.com

TranSwitch, AccessEDGE and are trademarks of TranSwitch Corporation. CellBus(R) is a registered trademark of TranSwitch Corporation.