SHELTON, CT – March 6, 2009 – TranSwitch Corporation (NASDAQ: TXCC), a leading provider of semiconductor solutions for the converging voice, data and video network, today announced that it entered into an agreement on March 3, 2009 with a Fortune 500 company to sublease 92,880 square feet of office space located in Shelton, Connecticut. The sublease agreement extends through the year 2014. As a result of this sublease, TranSwitch expects to reverse approximately $6.7 million of its previously accrued restructuring liability during the first quarter of the fiscal year ending December 31, 2009.