TranSwitch Corporation Completes Acquisition of Centillium Communications, Inc.

  
    
  
  
    
      TranSwitch® Corporation (NASDAQ: TXCC), a 
      leading provider of semiconductor solutions for the converging voice, 
      data and video network, today announced that it has completed its 
      acquisition of Centillium Communications, Inc. (NASDAQ: CTLM), a leading 
      provider of highly innovative communications processing technology.
    
    
      Under the terms of the agreement entered into on July 9, 2008, 
      TranSwitch will issue an aggregate of 25,000,000 shares of common stock 
      and pay $15,000,000 in cash, which will be allocated pro rata among 
      holders of Centillium common stock and in the money stock options 
      outstanding at the closing of the merger. Centillium stockholders will 
      own approximately 16% of the combined company.
    
    
      “We are pleased to welcome Centillium’s 
      customers, employees and shareholders to the TranSwitch team,” 
      said Dr. Santanu Das, president and CEO of TranSwitch Corporation. “The 
      combined company offers a portfolio of best-in-class communications 
      semiconductor products for next-generation broadband access, 
      Fiber-to-the-Home, Voice-over-IP, carrier Ethernet, and HDMI-based video 
      transport. The combined company will also be a major beneficiary of high 
      profile global telecommunications projects in countries such as the UK, 
      Korea, China, India, and Japan.”
    
    
      About TranSwitch Corporation
    
    
      TranSwitch Corporation (Nasdaq: TXCC) designs, develops and markets 
      innovative semiconductors that provide core functionality and complete 
      solutions for voice, data and video communications network equipment. As 
      a leading supplier to telecom, datacom, cable television and wireless 
      markets, TranSwitch customers include the major OEMs that serve the 
      worldwide public network, the Internet, and corporate Wide Area Networks 
      (WANs). TranSwitch devices are inherently flexible, many incorporating 
      embedded programmable microcontrollers to rapidly meet customers’ 
      new requirements or evolving network standards by modifying a function 
      via software instruction. TranSwitch implements global communications 
      standards in its VLSI solutions and is committed to providing 
      high-quality products and services. TranSwitch, Shelton, CT, is an ISO 
      9001:2000 registered company. For more information, visit www.transwitch.com.
    
    
      Forward-looking statements in this release, including statements 
      regarding management's expectations for future financial results and the 
      markets for TranSwitch's products, are made pursuant to the safe harbor 
      provisions of the Private Securities Litigation Reform Act of 1995. 
      Investors are cautioned that these forward-looking statements involve 
      risks and uncertainties that could cause actual results to differ 
      materially from those contained in the forward-looking statements, 
      including without limitation the risk that the businesses of TranSwitch 
      and Centillium will not be integrated successfully and without delay; 
      the risk that the transaction may involve unexpected costs or unexpected 
      liabilities; uncertainties concerning the effect of the transaction on 
      relationships with customers, employees and suppliers of either or both 
      companies; and other risks associated with TranSwitch’s 
      and Centillium’s businesses such as the risks 
      associated with acquiring new businesses; the risk of downturns in 
      economic conditions generally and in the telecommunications and data 
      communications markets and the semiconductor industry specifically; 
      risks in product development and market acceptance of and demand for 
      TranSwitch's products and products developed by TranSwitch's customers; 
      risks relating to TranSwitch's indebtedness; risks of failing to attract 
      and retain key managerial and technical personnel; risks associated with 
      foreign sales and high customer concentration; risks associated with 
      competition and competitive pricing pressures; risks associated with 
      investing in new businesses; risks of dependence on third-party VLSI 
      fabrication facilities; risks related to intellectual property rights 
      and litigation; risks in technology development and commercialization; 
      and other risks detailed in TranSwitch's filings with the Securities and 
      Exchange Commission.
    
    
      TranSwitch is a registered trademark of TranSwitch Corporation.