Multipurpose Network Processor Module from Interphase Provides Unprecedented Flexibility; iNAV 4550 Series Introduces a New Concept for Telecom OEM System Designs.

PLANO, Texas -- Interphase Corporation (Nasdaq:INPH), an international supplier of next-generation networking technologies, today introduced the iNAV(R) 4550 PMC Communications Resource Module, a new modular subsystem approach for executing multiple communications system functions with a single hardware design. Interphase sees this technological advancement as the initiation of a substantial paradigm shift in board-level communications design with "system-on-a-card" protocol conversion solutions for the next generation of carrier networks.

Designed to fulfill several roles within a variety of next generation telecom access environments, the iNAV 4550 can be used as an advanced communications controller for processing line interface traffic, a compact protocol conversion module for interworking cell-based and packet-based protocols, or a powerful peripheral resource module for specialized processing functions such as bridging and routing. All three functions supported by this product are common tasks in high-end telecommunications systems such as wireless gateways, Interworking Functions (IWFs), Serving Gateway Support Nodes (SGSNs), and Gateway GPRS Support Nodes (GGSNs), as well as next generation network media gateways and media gateway controllers. Historically these system functions have been implemented through inflexible, unspecialized, multi-board solutions that consume additional system slots and yield poor performance by comparison.

"Never before has one card been able to support so many services, perform so many functions, and suit so many environments," said Randall McComas, Vice President of Sales and Marketing at Interphase Corporation. "In addition to giving our customers a huge performance improvement and a decrease in equipment costs and development cycles over alternative gateway technologies in the marketplace, we're now solving multiple system- and network-level issues with just one product. The bottom line is that we're giving telecom OEMs a single solution to multiple problems."

The iNAV 4550 expands upon the advancement in protocol conversion technologies introduced by the Interphase flagship iNAV 4000 CompactPCI(R) Network Processor Blade. Network processor designs such as those used in the iNAV product family offer telecom equipment manufacturers a hardware-intensive solution for communications processing and protocol conversions, which provides multiple advantages over the development-intensive and generally less reliable software-based alternatives. The iNAV 4550's purpose-built Winpath(TM) 787 Packet Processor, the latest network processor architecture from Wintegra(TM), Inc., offers multimillion packet processing per second, an easy-to-program uni-processor architecture, and pre-developed lower layer software for traffic policing and shaping, protocol processing, protocol conversions, and switching. Benefits from this design include the time-to-market improvement resulting from substantially reduced integration cycles, cost savings associated with reduced engineering efforts for protocol stack development, and low equipment cost for the level of performance provided by the iNAV 4550.

One of the more significant capabilities of the iNAV 4550 is the ATM AAL5 - Ethernet bridging capability for converging ATM and Ethernet networks with a seamless IP bridge. Network convergence is a daunting challenge in today's communications networks. Addressing the carriers' dual-need to satisfy end-user demand for communicating across multiple network mediums while consolidating network infrastructure for cost control, the iNAV 4550 serves as a gateway-on-a-card for bridging multiple packet networks, offering a superior price/performance ratio over existing market alternatives. In addition to network convergence, the iNAV 4550's processing capabilities can be used to execute other system functions such as IP over Ethernet (IPoE) and IP over ATM (IPoA) packet routing & classification per RFC 2684, ATM cell switching, Ethernet switching, ATM SARing, and ATM cell "grooming" to aggregate line traffic for consolidating leased lines.

The specific role of the iNAV 4550 is designated by the location of the ATM and Gigabit Ethernet interfaces, which can be situated on the front panel or on the PCI Telecom Mezzanine Card (PTMC) backplane connectors and can be utilized for communications payload or management purposes. When used as an I/O module for a host computer, the iNAV 4550 looks like a regular GigE Network Interface Card (NIC) to the host software and thus it does not require specialized communications software on the host side. Other features include support for multiple interface options (OC-3/STM-1 or OC-12/STM-4), Automatic Protection Switching (APS) for network resiliency, a Gigabit Ethernet MAC, ZBT SRAM parameter memory for increased performance, and compliance with PICMG(R) 2.15 option 6 (PT6MC) or option 7 (PT7MC) specifications.

Designed with performance and flexibility in mind, the iNAV 4550 establishes a new benchmark in protocol interworking combining all the benefits of a much more expensive solution and the easy integration of a NIC.

General availability of the iNAV 4550 is planned for Q4 of this year.

About Interphase Corporation

Interphase enables rapid platform design and integration for the global voice and data communications markets through custom and off-the-shelf communications equipment, embedded software development suites, and systems integration and consulting services for telecom and enterprise networks. The company's products connect computer and telecommunication servers to Wide Area Networks (WANs), Local Area Networks (LANs) and Storage Area Networks (SANs) using Asynchronous Transfer Mode (ATM), Ethernet, Signaling System 7 (SS7), IP, Fibre Channel, HDLC, Frame Relay, and Integrated Services Digital Network (ISDN) technologies. Headquartered in Plano, Texas with offices across the United States, Paris, Munich, and Helsinki, Interphase 2003 revenues were $32.5 million. Clients include Lucent Technologies, Nortel Networks, Ericsson, Hewlett-Packard, Alcatel, IBM, Compaq, Motorola, Fujitsu, Lockheed Martin, and Raytheon. Additional information about Interphase and its products is available through 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.

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