TranSwitch Corporation Announces Voluntary Delisting From NASDAQ

TranSwitch Corporation (NASDAQ: TXCC), a leading provider of semiconductor solutions in the rapidly growing consumer electronics and telecommunications markets, today announced its intention to voluntarily delist its common stock from the NASDAQ Stock Market LLC (“Nasdaq”), in part due to the Company’s non-compliance with the minimum closing bid and stockholders’ equity requirements for continued listing on The NASDAQ Capital Market.

On December 4, 2012, the Company received a letter from Nasdaq notifying it that the closing bid price of its common stock was below the $1.00 minimum bid price requirement for 30 consecutive business days and, as a result, the Company no longer complied with the minimum bid price requirement under Listing Rule 5550(a)(2). On February 26, 2013, the Company received a letter from Nasdaq notifying it that the Company was no longer in compliance with the minimum stockholders’ equity requirement of at least $2.5 million under Listing Rule 5550(b)(1). On June 6, 2013, the Company received a letter from the Listing Qualifications Department of Nasdaq advising it that, unless it appealed the determination by June 13, 2013, its securities would be scheduled for delisting and would be suspended at the opening of business on June 17, 2013 for failure to comply with Listing Rules 5550(a)(2) and 5550(b)(1). The Company appealed the determination to a Hearings Panel (the “Panel”), which automatically stayed the delisting of the Company’s securities pending the issuance of a decision by the Panel. The Company made a presentation to the Panel on July 11, 2013.

The voluntary decision to delist from Nasdaq was taken following the Board of Directors’ detailed review of numerous factors including the aforementioned Nasdaq letters and hearing, the applicable Nasdaq rules and regulations, the benefits generated by the maintenance of the listing, the Company’s current share price and stockholders’ equity, and the feasibility of ongoing compliance with the Nasdaq listing requirements in light of the Company’s pressing cash needs and limited financing opportunities.

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