ADTRAN, Inc. Revises Fourth Quarter Revenue and Earnings Expectations.

HUNTSVILLE, Ala. -- ADTRAN, Inc. (NASDAQ: ADTN) announced revised revenue and earnings expectations for the fourth quarter ending December 31, 2004. Revenue for the quarter now is expected to range between $100 million and $104 million. Earnings are expected to range from $.16 to $.18 per share, assuming dilution.

ADTRAN Chairman and Chief Executive Officer Mark Smith stated, "Bookings have been weak during the quarter in the midst of a pause in our markets. We believe this pause will be short lived as consumer demand for broadband services continues to grow and as business spending begins to improve. Also, we continue to solidify our market share positions in traditional product areas in addition to expanding our positions in new product areas."

The Company will release its financial results for the fourth quarter 2004 on Tuesday, January 25, 2005. The Company will conduct a conference call at 9:30 a.m. Central Time on the same day. Guidance for the first quarter 2005 and the year 2005 will be issued during this conference call. In addition, ADTRAN will webcast this conference call live through the StreetEvents.com service. To listen, simply visit the Investor Relations site at http://www.adtran.com approximately 10 minutes prior to the start of the call and click on the conference call link provided.

An online replay of the conference call, as well as the text of the Company's earnings release, will be available on the Investor Relations site at http://www.adtran.com for at least 12 months following the call.

ADTRAN, Inc. is one of the world's most successful network access equipment suppliers, with a 16-year history of profitability and a portfolio of more than 1,300 solutions for use in the last mile of today's telecommunications networks. Widely deployed by both carriers and enterprises, ADTRAN solutions enable voice, data, video, and Internet communications across copper, fiber, and wireless network infrastructures. ADTRAN solutions are currently in use by every major domestic service provider and many international ones, as well as by thousands of public, private and government organizations worldwide.

For more information, contact the company at 800 9ADTRAN (800 923-8726) or via email at [e-mail]. On the web, visit www.adtran.com.

This press release contains forward-looking statements which reflect management's best judgment based on factors currently known. However, these statements involve risks and uncertainties, including the successful development and market acceptance of new products, the degree of competition in the market for such products, the product and channel mix, component costs, manufacturing efficiencies, and other risks detailed in our annual report on Form 10-K for the year ended December 31, 2003. Such risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release.