Interphase Unveils the iNAV 9400 Signaling Gateway.

LAS VEGAS -- SS7 Signaling Converter Solution Enables Transition to Converged Networks

Interphase Corporation (NASDAQ: INPH), a leading international supplier of next-generation networking technologies, today announced the iNAV(R) 9400 product, a high-performance and highly reliable signaling gateway solution, designed to support signaling convergence for today's wireline/wireless networks and next-generation voice over IP (VoIP) and IP multimedia subsystem (IMS) networks. The iNAV 9400 interworks SS7 signaling networks and IETF SIGTRAN signaling networks.

The iNAV 9400 supports low-speed, high-speed and ATM line interfaces together with a broad set of protocol variants including ANSI, ITU-T, ETSI, TTC-Japan, NTT-Japan and China for SS7 protocols. For SIGTRAN functions, the iNAV 9400 provides high-performance SCTP transport combined with M3UA (MTP-3 user adaptation layer), M2UA (MTP-2 user adaptation layer) and M2PA (MTP-2 peer-to-peer adaptation layer); SUA (SCCP user adaptation layer) will be supported in a future release.

As fixed and wireless networks transition to VoIP and IMS, signaling gateways provide the functionality to integrate the existing Public Switched Telecommunications Network (PSTN) to these emerging networks. According to Gartner, Inc., signaling gateway revenue will grow over 16.9% between 2004 and 2008, to over $500M in 2008.(1)

The iNAV 9400 Signaling Gateway is a carrier grade, cost-effective SS7 signaling solution that can be effectively scaled to meet increasing traffic demand. The gateway can operate either as a signaling end point (SEP) or as a signaling transfer point (STP) in SS7 and IP SIGTRAN networks for SS7 signaling. This innovative product provides an upgrade path to deploy new IP-based services while maintaining interoperability with current PSTN networks. In conformance to IETF standards, the iNAV 9400 Signaling Gateway has been fully integrated with fault tolerant capabilities of SCTP over IP. The well-proven SS7 interface and 1+1 Active-Active carrier, highly-available architecture of the iNAV 9400 virtually eliminates network message loss and brings more than 99.999% (five nines) transport service availability to the network elements.

"Gateway technology is an emerging key component in allowing service providers around the world to enhance their networks to deliver advanced services," said Prasad Kallur, vice president of strategic marketing at Interphase. "With our broad experience in delivering high performance and highly reliable solutions for the signaling infrastructure, the Interphase Signaling Gateway was a natural next step as we focus on delivering higher value-add integrated solutions to the market."

The unique distributed architecture of the iNAV 9400 allows parallel processing of SS7 and SIGTRAN signaling traffic via all SS7 links and IP interfaces available on the system and provides scalability limited only by hardware capacity. With the increase in service demand and signaling capacity in the network, the transaction capacity can be increased with the incorporation of additional processors in the system. Additional SS7 signaling interfaces will meet the need to address the signaling connectivity via SS7 links.

The Interphase Signaling Gateway is available as an appliance with NEBS-compliant telecommunication servers or as a blade-level solution in CompactPCI and AdvancedTCA platform architectures. The product is in pre-deployment trials with a number of tier 1 telecom equipment manufacturers.

Interphase is showcasing the new product this week at the company's booth - #619 - at the Telecom 05 industry trade show in Las Vegas.

Please contact Interphase for pricing and availability.

About Interphase Corporation

Interphase Corporation (NASDAQ: INPH) is a leading provider of robust building blocks, highly integrated subsystems and innovative gateway appliances for the converged communications network. Building on a 30-year history of providing advanced I/O solutions for telecom and enterprise applications, and addressing the need for high speed connectivity, Interphase has established a key leadership role in delivering next generation AdvancedTCA(R) (ATCA) and AdvancedMC(TM) (AMC) solutions to the marketplace. Headquartered in Plano, Texas with sales offices across the globe, Interphase 2004 revenues were $35.0 million. Clients include Alcatel, Ericsson, Fujitsu Ltd., Hewlett Packard, Lockheed Martin, Lucent Technologies, Motorola Inc., Nortel Networks Ltd., Raytheon and Samsung. Additional information about Interphase and its products is available on the company's Web site at www.interphase.com.

Safe Harbor

This press release contains forward-looking statements with respect to financial results and certain other matters. These statements are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, without limitation, fluctuations in demand, the quality and price of similar or comparable networking products, access to sources of capital, general economic conditions in the company's market areas, and that future sales and growth rates for the industry and the company could be lower than anticipated.

(1) "Forecast: Media Gateways, Worldwide, 2003-2008, 4Q04 Update," Bettina Tratz-Ryan, Deborah Kish, Jouni Forsman; Gartner, Inc.; January 2005

Interphase, the Interphase logo and iNAV are registered trademarks of Interphase Corporation. All other trademarks are the property of their respective owners.