SHELTON, Conn., and BEDFORD, Mass. -- TranSwitch Corporation (NASDAQ:TXCC) announced today that it has signed a definitive agreement to acquire privately held Onex Communications Corporation ("Onex"), which specializes in the development of integrated circuits that enable switching, routing and transmission of multiple types of voice and data traffic. Onex's System Silicon solution is able to aggregate, groom, switch and provision legacy TDM and next generation voice and data traffic over metropolitan access and transmission networks. The transaction has a total value of approximately $89 million. The consideration for the non-TranSwitch interest in Onex will consist of $20 million in cash and approximately 6 million shares of TranSwitch common stock, valued at approximately $55 million based on yesterday's closing price. The transaction is expected to be completed in the third quarter ending September 30, 2001, subject to customary closing conditions and requisite regulatory approvals. The transaction, which will be accounted for as a purchase, is expected to be dilutive to TranSwitch's earnings per share on a pro-forma basis by approximately $0.03 - $0.05 per share in the fourth quarter of 2001. Onex, based in Bedford, Massachusetts, will operate as a wholly owned subsidiary of TranSwitch. TranSwitch Corp. Onex Communications Corp.