Item 1.01 Entry into a Material Definitive Agreement.

On March 6, 2009, TranSwitch Corporation (the "Company") announced that it entered into a sublease agreement (the "Sublease Agreement") on March 3, 2009 with an unaffiliated party to sublease 92,880 square feet of the Company's office space in Shelton, Connecticut (the "Sublease Premises").

The term of the Sublease Agreement shall commence on a date no later than August 14, 2009 (the "Commencement Date"). The initial term of the Sublease Agreement shall expire sixty-one (61) full months after the Commencement Date. Base rent for the Subleased Premises is One Hundred Twelve Thousand, Two Hundred Thirty Dollars ($112,230.00) per month.

As a result of the Sublease Agreement, the Company expects to reverse approximately $6.7 million of its previously accrued restructuring liability during the first quarter of the fiscal year ending December 31, 2009.

The press release announcing the Sublease Agreement is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

The Exhibits included as part of this Current Report are listed in the attached Exhibit Index. The Exhibit Index, together with the Exhibits listed therein, is incorporated herein by this reference.

(d) Exhibits.

Exhibit No. Description
99.1 Press Release, dated March 6, 2009.

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