DITECH COMMUNICATIONS ANNOUNCES SX-24 AND SX-30 ECHO CANCELLER.

Ditech Communications Corporation (Nasdaq: DITC) announced its new SX-24 and SX-30, the industry's only echo cancellers to combine single T1/E1 echo cancellation capability and a wide array of voice enhancement software programs (VQoS) on a single rack-mounted card. The SX-24/SX-30 products continue Ditech's drive to transform the traditional echo canceller, which only performed a single function -- canceling echo -- into a robust and flexible tool for improving voice quality. Ditech's VQoS suite allows telephone companies to eliminate a variety of voice quality problems, including acoustic echo, background noise and fluctuating voice levels. While competitors require their customers to purchase individual daughter-boards costing several hundred dollars to provide voice enhancement capabilities, Ditech's VQoS software comes bundled as part of the standard Ditech echo canceller.

The SX-24 can be mounted in an adapter card that allows customers simply to remove a number of older-generation echo canceller cards (from Ditech and other vendors) that fail to provide additional voice enhancement features and plug-in the new SX-24 card with VQoS. Ditech's SX-24 echo canceller and adapter cards are targeted at the North American market, with volume production scheduled for early November. Ditech's SX-30 echo canceller is targeted at the international market, with volume production scheduled for early November. Pricing for the SX-24/SX-30 is dependent on volume purchase and upgrade plans and will be disclosed after customer consultation.

"Wireless network operators must deal with an array of voice quality issues, and Ditech's SX-24 and SX-30 products provide an effortless and extremely cost-effective means of deploying advanced noise reduction and a whole host of voice enhancement technology into their networks," said Ray Caron, Ditech's Vice President of Marketing. "With Ditech's SX-24 and SX-30, telephone operators can literally swap-out their legacy cancellers overnight and have robust voice quality enhancement on every voice circuit the next day. The SX-24 and SX-30 also incorporate all of Ditech's fourth generation technology, including 128 millisecond tail delay, in-service software upgrades, and the industry's most extended warranty."

Ditech Communications Corporation is a global telecommunications equipment supplier for voice and optical networks. Ditech's voice products are high-capacity echo cancellers that utilize advanced software and digital signal processor (DSP) technology. This unique combination of software and hardware allows Ditech to deliver Voice Quality of Service (VQoS), a robust and cost-effective solution for voice enhancement (including noise reduction) and echo cancellation. Ditech also develops and markets optical subsystems and systems communications products. Ditech's optical subsystem products include optical amplifiers, transponders and network management products that enable service providers to cost-effectively expand and extend the reach of fiber optic networks. Ditech (DITC) is listed on the Nasdaq National Market and is headquartered in Mountain View, California (web site: http://www.ditechcom.com). Ditech is also developing and marketing its Titanium optical transport system product through its subsidiary, Altamar Networks (http://www.altamar.com).