Transmode Systems AB Selects TranSwitch's EtherPHAST-48 Plus for Next Generation Optical Access Solution.

SHELTON, Conn. -- Versatile Multi-Service Mapper Architecture and Abstracting APIs Deliver High Degree of Integration and Value for Metro Networks

TranSwitch(R) Corporation (NASDAQ: TXCC), a leading provider of high-speed Broadband, Switching, and Transport semiconductor solutions for voice, data and video communications, today announced that Transmode Systems AB has selected its EtherPHAST(TM)-48 Plus device for the company's next generation Transmode Service Extender (TSE). The TSE is a new Optical Access solution for the extension of ultra-broadband services within and beyond the Metro.

TranSwitch's industry-leading EtherPHAST-48 Plus multi-protocol-over SONET/SDH mapper delivers rich and flexible network, client, and backplane interface capabilities. For the Transmode platform this includes full SONET/SDH UNI capability with TOH/SOH termination and processing, quad TBI interfaces for ESCON clients, and quad 77 MHz parallel Telecom buses.

"The feature rich GFP and flexible VCAT functionalities within the EtherPHAST-48 Plus have enabled the TSE to seamlessly integrate between the Metro and Access Networks based on WDM and/or dark fiber," said Michael Crossey, vice president, Marketing and Business Development at Transmode. "The TranSwitch devices are making a significant contribution to Transmode's continued success in developing intelligent WDM transmission products optimized for the distinctive demands of the metropolitan area network."

The TSE platform combines the capacity, transparency, and scalability of WDM solutions with the ubiquity, manageability, and interoperability of SDH/SONET, while retaining a product architecture that is inherently low cost, highly flexible, and simple to operate. The TSE, a micro MSPP, is a compact (2RU), modular and future-proof service extension device designed for both customer premises and central office deployment. The TSE focuses on the profitable delivery of emerging ultra-broadband services such as Storage, Gigabit Ethernet, and Digital Video, while ensuring continuing revenues from existing services.

"Carriers and end-users are seeking efficient, cost-effective ways to transport Ethernet and SAN data over existing SONET/SDH infrastructure," said Hoshang Mulla, vice president of Marketing for TranSwitch. "With products such as our EtherPHAST-48 Plus, which is an excellent fit for multiservice platforms such as the TSE, TranSwitch is enabling OEMs to transport next generation services over legacy networks."

EtherPHAST-48 Plus supports virtual concatenations with LCAS as well as standard and non-standard contiguous concatenations. A quad 19/77 MHz Telecom bus enables client port expansion and rapid implementation of multi-service designs. Client protocols include ESCON, Fibre Channel, FICON, DVB-ASI, Gigabit Ethernet, and TDM. Mappings include Transparent GFP, Framed GFP in Null and Linear modes, PPP/BCP, PPP/HDLC, transparent HDLC, and LAPS X.85 and X.86. Multiplexed dual Multi-protocol Packet Interfaces (MPI) feature a unique PDU Length Indicator (PLI) extension which makes possible PDU-independent transfer of packets in and out of EtherPHAST-48 Plus without adding buffer RAM to a design. A hardware-abstracting service-oriented API set enables OEMs to rapidly develop their application software.

The EtherPHAST-48 Plus device is part of the field proven EtherMap(R) and PHAST(R) product family. Key benefits include multi-port/multi-rate standards compliance, multi-encapsulation capability, and a high degree of bandwidth granularity, resulting in reduced platform cost, faster time-to-market (TTM), and greater revenue generation for OEMs and Service Providers.

About Transmode Systems AB

Transmode Systems is a leading global supplier of Smart Solutions for Optical Access. The company pioneered a new generation of optical transmission system built on CWDM technology, the System 1100, which has been deployed in Service Provider and Enterprise networks globally. Based in Stockholm, Sweden, Transmode has now broadened its product portfolio to encompass next-generation edge aggregation solutions for SDH/SONET and dark fiber networks. For more information, visit www.transmode.com.

About TranSwitch

TranSwitch Corporation designs, develops and markets innovative semiconductors 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 chips for Broadband, Transport and Switching 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 9001:2000 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 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, PHAST, and EtherMap are registered trademarks of TranSwitch Corporation. EtherPHAST is a trademark of TranSwitch Corporation.