Ottawa, Canada, January 16, 2004 - Galazar Networks issued the following statement in response to TranSwitch Corporation's patent infringement allegation that was filed against Galazar on February 4, 2003.

On January 6, 2004, TranSwitch filed a motion with the Court to amend their complaint to dismiss their claims of patent infringement. This motion has not yet been heard by or granted by the Court.

In our view, TranSwitch's decision to seek dismissal of its patent infringement claims vindicates the position that Galazar has taken from the outset - that TranSwitch's patent infringement claims are completely without reason or merit. This conclusion is reinforced by the fact that, despite repeated requests, TranSwitch has never established to Galazar's satisfaction that TranSwitch had any basis for filing the lawsuit in the first place.

We will keep you informed of further progress in this lawsuit.

As always, Galazar remains committed to delivering quality products to our customers and we will continue to ensure that our customers' needs are addressed.

About Galazar Networks
Galazar Networks Inc., based in Ottawa, Canada, is a fabless semiconductor company that is delivering leading carrier-grade multi-service, Ethernet and data service framers for highly channelized service applications. Galazar's products enable network equipment vendors to deliver market-differentiating products in shortened timeframes, and with lower development cost. For more information, visit www.galazar.com.