TranSwitch Goes DutchTranSwitch Goes Dutch

SHELTON, Conn. -- TranSwitch Corporation - (Nasdaq: TXCC) today announced that it has commenced a "Modified Dutch Auction" tender offer (the "Offer") for a portion of its convertible debt securities described below. TranSwitch will offer to purchase for cash, at prices determined by a "Modified Dutch Auction" procedure within the purchase price range of $650 to $700 per $1,000 principal amount, TranSwitch's 4 1/2% Convertible Notes due 2005 (the "Notes") up to a maximum aggregate principal amount of $200 million (the "Offer Amount"), or approximately 64% of the outstanding principal amount of the Notes. The funds required for TranSwitch to consummate the Offer will come from its available cash. Under the "Modified Dutch Auction" procedure, and subject to the terms and conditions of the Offer, TranSwitch will accept tendered Notes in the Offer in the order of the lowest to the highest tender prices specified by tendering holders within the price range, and will select the single lowest price so specified (the "Purchase Price") that will enable TranSwitch to purchase the Offer Amount (or, if less than the Offer Amount, all Notes tendered). TranSwitch will pay the same Purchase Price for all Notes that are tendered at or below the Purchase Price, upon the terms and subject to the conditions of the Offer, including the proration terms. The Offer for the Notes is anticipated to expire at 12:00 Midnight, New York City time, on Monday, March 11, 2002, unless the Offer is extended. Tendered Notes may be withdrawn at any time prior to the expiration date. TranSwitch Corp.