March 12, 2001–Shelton, Connecticut–TranSwitch Corp. has announced that due to increased weakness in the telecommunications systems market in North America, as evidenced by recent announcements by major telecom systems vendors, it expects that its first quarter 2001 revenue will be essentially flat compared to fourth quarter 2000 revenue of $51million.

The company is continuing to manage its business according to the business model that has been pursued in recent quarters, including continued investment in R&D. TranSwitch expects first quarter 2001 earnings per share in the range of $0.16-$0.17. Dr. Santanu Das, TranSwitch president and chairman of the Board of Directors, stated, “Our business in Asia and Europe continues to be strong, but we now see increased softness in North America. In light of the recent announcements from the major telecom systems vendors, we no longer have the confidence that our expected turns business will materialize. Further, based on the visibility we now have of second quarter 2001, we expect revenue in second quarter 2001 to be flat compared to first quarter 2001.”