TranSwitch will acquire the assets of the ASIC Design Center division of Data JCE, a publicly-held Israeli electronic components distribution company. That Design Center develops and supplies customer-specific semiconductor products primarily to Israeli OEMs and fabless semiconductor companies, or Israeli divisions of US and European companies. TranSwitch will pay an upfront cash consideration of $1 million and will issue approximately $5.7 million worth of TranSwitch Common Stock in exchange for the ongoing business of Data JCE ASIC Design Center. Upon satisfactory achievement of certain operating objectives over calendar year 2007, TranSwitch will pay an additional amount in the form of TranSwitch stock or cash, at its option, based on performance. The acquisition is expected to close on or about January 10, 2007. TranSwitch develops semiconductors for voice, data and video communications network equipment.