Advanced devices will enable efficient voice and data delivery over IP/MPLS carrier and enterprise systems

(Shelton, CT) January 7, 2003 - TranSwitch Corporation (NASDAQ: TXCC), a leading developer and global supplier of innovative, high speed VLSI semiconductor solutions, and RAD Data Communications Ltd., an international manufacturer of access equipment for data communications and telecommunications solutions headquartered in Tel Aviv, Israel, announced today that they are joining forces under a strategic technology partnership and OEM agreement to introduce a new family of TDM over IP (TDMoIP) VLSI products that can be used to develop TDMoIP-capable network equipment. These advanced devices will enable transparent transport of legacy TDM and serial data over IP/MPLS networks.

“Packet-switched networks are not designed to provide TDM services,” explained Tal Gilad, TDMoIP Product Manager at RAD Data Communications. “TDMoIP enables transmission of TDM traffic over asynchronous networks while overcoming packet loss and delay variations introduced by those networks.” TDMoIP, which RAD developed and introduced to the industry at Telecom Geneva in 1999, is now an established technology that has been successfully deployed in over 2,500 links worldwide to carry TDM over the packet-switched networks of carriers, Metropolitan Area Networks (MANs) and enterprises. “We are delighted to be collaborating with TranSwitch,” said Gilad. “We are confident that as more vendors adopt the TDMoIP solution, it will emerge as the industry standard for legacy migration.” RAD is working in the IETF and MPLS Forums to promote TDMoIP as a standard for transporting TDM traffic over packet networks.

"The RAD and TranSwitch partnership exemplifies the best of breed relationships required to successfully allow the public telephone network to gracefully evolve into the next generation network ", said David Fraley, principal analyst at Gartner Inc. He continued, "TDM over IP technology enables evolutionary migration of voice traffic to packet-switched networks. It allows next generation carriers to broaden their range of services to include legacy TDM and signaling such as SS7, ISDN and Q.SIG as well as packet-based offerings."

“TranSwitch recognizes enormous potential in developing solutions for the transitional communications market, which involves transporting legacy services over next generation networks and next generation services over legacy infrastructure,” stated Brian Stroehlein, Product Marketing Manager at TranSwitch. “The new TDMoIP family will expand our portfolio of access and edge products and work seamlessly with existing devices. We are excited to be partnering with RAD in bringing their proven, pioneering packet transport technology to market in chip form.”

Additional information on TDMoIP technology is available at www.tdmoip.com.