BaneTele Selects Paradyne for Broadband Offering in Norway.

Business Editors/High-Tech Writers

LARGO, Fla.--(BUSINESS WIRE)--June 4, 2004

Norway's Premier Provider of Broadband Communication Services Selects

Paradyne Broadband Access Concentrator and Standards-Based DSL for

Deployment of Business-Class and Residential Broadband Services

Paradyne, (Nasdaq:PDYN), a leading provider of broadband voice, data and video network access solutions, today announced that BaneTele has selected its Broadband Access Concentrator for deployment of IP-based broadband services, including the latest in ADSL and SHDSL, as well as traditional Time Division Multiplexing (TDM) business-class services. This strategic move allows BaneTele to offer both mission-critical business network services as well as residential ADSL broadband from a single platform.

BaneTele CEO Matthias Peter said, "BaneTele has one of the most advanced networks in the world. By adding a complete offering of broadband access for business and residential services we can expand our network to deliver quality service offerings that address the broadband explosion occurring today throughout Norway. By delivering a single platform from which to deploy SHDSL, ADSL and TDM, Paradyne allows BaneTele to cost-effectively address all market segments, adding value to our infrastructure."

Broadband Access Concentrators are used by network service providers within the wireline network infrastructure to terminate traditional phone lines, converting the signals they carry into efficient IP or ATM data for transport over network backbones. Paradyne's implementation at BaneTele leverages its ADSL, SHDSL and TDM line modules, providing robust and high quality broadband service for Voice over IP and high-speed Internet access.

IBM Global Services is serving as the turnkey system integrator for Paradyne's BaneTele deployment together with Paradyne's Scandinavian distributor Elltepe Broadband Technology AB.

"We are pleased to add BaneTele to our list of customers taking advantage of the multi-service capabilities of our Broadband Access Concentrator," said Sean Belanger, president and CEO of Paradyne. "BaneTele understands the importance of creating innovative service bundles to address the demand for voice and data over broadband. Using our innovative platform, BaneTele can cost-effectively deploy and manage new services from a single platform and make the most of its broadband network."

About BaneTele

BaneTele, the leading competitive provider of telecommunications infrastructure, broadband, transmission and data networks, aims to develop and deliver the optimal solutions for its customers within the public and private sectors. With our sophisticated and technical advanced communications network, BaneTele is ready to meet current and future demands for telecommunication products and services.

The core of BaneTele's operation is its fully owned and self-operated redundant fiberoptical network, deployed from the very south to the north of Norway. The network consists of more than 12,500 domestic route kilometers (km) of fiber, from which BaneTele provides capacity and communication products and services based on DWDM, SDH and ADSL/SDSL. To extend the reach-out of our advanced domestic network throughout Scandinavia, we also own and operate fiber installations in Sweden and Denmark, currently with POPs in Stockholm and Copenhagen.

As add-ons to our capacity products and services, BaneTele also offers housing and IP-based products and services. Our state-of-the-art, multi-service IP/MPLS-based network is designed to enable Internet, application and other service providers to offer the most advanced and reliable services to their customers.

BaneTele utilizes our sophisticated and technically advanced network platform at all levels to develop the "Digital Market Place," from which we offer our cooperating companies the possibility for piloting and developing new technologies and services at their own pace. The Digital Market Place is where BaneTele brings all the latest communications technologies together in a simple and reliable way.

About Paradyne

Paradyne's broadband access equipment enables service providers to profitably deliver voice, data and video services and smoothly migrate to packet-based networks. These solutions include an extensive portfolio of broadband access concentrators, media gateways, and customer premises equipment. Services offered to business and residential customers worldwide using Paradyne's equipment include Voice over IP, high-speed Internet, Wide Area Networking featuring Service Level Management, IP switched video, and traditional T1/E1 data. More information may be obtained by visiting http://www.paradyne.com or by calling [phone].

Information about Forward-Looking Statements:

This press release contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements are made pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations and beliefs as well as on assumptions made by, and information currently available to, management. Among the factors that could cause actual future events to differ materially include: the uncertainty regarding the acceptance of new telecommunications services based on DSL technology; reduction or discontinuation of purchase of our products by NSPs; the failure of NSPs to incorporate our products into their infrastructure; the possibility that Paradyne's competitors may develop competing products that are superior in terms of quality, cost or both. For a detailed discussion of other risk factors that could affect Paradyne's business, please refer to the risks identified in Paradyne's Current Report on Form 10-Q, dated April 28, 2004, and in Paradyne's other filings with the Securities and Exchange Commission.

Editors Note: Paradyne and the Paradyne Logo are registered trademarks of Paradyne Corporation.