Ottawa, Canada, March 31, 2003 - Galazar Networks issued the following statement in response to TranSwitch Corporation's patent infringement allegation that was filed against Galazar on February 4, 2003. Galazar first became aware of this allegation through a TranSwitch news release. As such, Galazar was not provided any opportunity to refute the allegation of infringement prior to the news release.

"This matter has been reviewed by our technical team and legal counsel. The allegation of patent infringement is completely without reason or merit and we will successfully defend ourselves against these accusations," said Richard deBoer, Chief Executive Officer, Galazar Networks. "Galazar absolutely respects the intellectual property developed by others, and equally, we expect others to respect ours.

"Galazar has devoted enormous effort to delivering industry-leading products such as the MSF250, which has achieved tremendous customer successes and will be shipping in the next quarter. Galazar will continue to focus on its customers and on the development and the delivery of industry leading products in a timely and flawless manner."

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.

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