Og Vodafone, Iceland's Second Largest Broadband Services Provider, Builds New IP-Based Network with Paradyne's 8000 Series BLCs.

LARGO, Fla. -- Paradyne (NASDAQ:PDYN), a leading provider of triple play broadband loop carriers (BLCs) and Ethernet access equipment, today announced an expanded relationship with Og Vodafone, marking the first BLC deployment in Iceland.

In a move to offer additional value-added triple play services, Og Vodafone has elected to continue with the deployment of Paradyne's multi-service 8000 series platform as they transform their current ATM network to a more advanced IP-based network. As part of the agreement, Paradyne will provide its ADSL2+ cards for the 8000 series BLCs. Triple play services including IPTV, Internet, and VoIP will be available to more than 5,000 homes in the local area by the end of 2005.

"Og Vodafone is excited to have the ability to offer our customers a variety of broadband solutions using Paradyne's multi-service platforms," said Orn Orrason, vice president of networks, Og Vodafone. "We have used their 8000 series BLC chassis for years now and they continue to show proven strength throughout the access network. And more importantly, our previous investment in the 8000 series platforms will be preserved since ATM is easily converted to IP with only a simple change of the SCP card."

"Paradyne is committed to helping service providers like Og Vodafone stay competitive. This means having the ability to profitably offer IP-based triple play solutions that can deliver advanced data and video services," said Ken Hood, vice president of product management and marketing, Paradyne. "We are very pleased to be able to continue our relationship with Og Vodafone and play a part in their next-generation network deployments."

Paradyne's 8000 Series Broadband Loop Carrier (BLC) is a standards-based, scalable, high-capacity BLC that utilizes the latest switching fabric, enabling service providers to offer voice, video, and data services from a single platform. The 8000 series' flexibility lets you meet market demand for multiple services, providing significant revenue generation.

About Paradyne

Paradyne provides a broad family of IP-based broadband access solutions, including BLCs, DSLAMs, Ethernet in the First Mile bonded solutions, IADs, and CPE. Paradyne's products support both residential triple play solutions and business class bonded SHDSL, ADSL2+, T1/E1, and DS3 bonded solutions for LAN extension and cell site data backhaul applications.

Paradyne's solutions are designed to enhance carrier revenue streams with full support for Multimedia Traffic Management (MTM) and to lower carrier operational expenses through Operational Intelligence (OpIQ).

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 March 16, 2005, 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.