TranSwitch Announces a Technology License Agreement for Its 3.5G HDMI(TM) 1.3 PHY IP Core

TranSwitch® Corporation (NASDAQ: TXCC), a leading provider of carrier-class semiconductor solutions for the converging voice, data and video network, today announces a commercial licensing for its 3.5 Gbps HDMI 1.3 Intellectual Property (IP) core. This license is for TXC-98072 - 3.5 Gbps/channel HDMI 1.3 Transmitter IP core, designed and fabricated using TSMCs (Taiwan Semiconductor Manufacturing Corporation) 90nm G process. The primary use of this core will be in digital cameras.

The need for high throughput in the HDMI market stems from the demand for higher resolutions and increased color depth. New high-end TVs have already started to adopt 10 bits per color (30 bit per pixel), going to 12 bits and later 16 bits per color. The speeds of existing HDMI PHYs in the market go up to 2.25Gbps/channel and these can not meet the emerging requirements of the industry. TranSwitch is the first provider in the market for HDMI PHYs, capable of running at 3.5Gbps which is the full speed of the HDMI 1.3 standard, said Mr. Amir Bar-Niv, Vice President for Systems and Applications at TranSwitch Corporation.

The HD-PXL-1.3 transmitter IP core is available in two versions. The first version meets all the current HD (High Definition) standards up to 2.25 Gbps. The second version supports serial communications at a speed of up to 3.5 Gbps per channel for extended HD resolutions, with backward compatibility to the first version of 2.25 Gbps.

The transmitter IP core and the DSP-based receiver IP core can run at aggregated speeds of up to 10.5 Gbps and support color depth of up to 16 bits, while providing low power consumption and small die size.

The TranSwitch PHY cores have the added advantage that they incorporate a unique set of features, called SI UpswingTM that enhances the control on signal integrity, which is required for data rates above 2.5 Gbps. The transmitter has features for amplitude control, slope control, and pre-emphasis control as well as internal line termination. The company also licenses an HDMI 1.3 receiver core that has some unique features including an adaptive equalizer with an accelerated adaptation mechanism, allowing the use of a wide spectrum of cables, connectors, and speeds.

TranSwitch provides a comprehensive package of deliverables to assist customers through all phases of development, design integration and manufacturing of their SoC. This package includes a development platform, as well as all documentation and models of the IP, which allows customers to easily integrate the HD-PXL-1.3 IP cores into complex SoC designs so they can get to market more quickly. TranSwitch's roadmap in this area includes offering these cores in 65 nm technology by the end of 2008 and other products including offerings for DisplayPort as market demands evolve.

About TranSwitch

TranSwitch Corporation designs, develops and markets innovative semiconductors and technology 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 9001:2000 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 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. HD-PXL and SI Upswing are trademarks of TranSwitch Corporation. HDMI, the HDMI Logo and High-Definition Multimedia Interface are trademarks or registered trademarks of HDMI Licensing LLC.

Contacts:

TranSwitch Corporation
David Aquilino, 203-929-8810 ext. 2257
Marketing Communications
david.aquilino@transwitch.com

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