PairGain's PG-FlexPlus Revolutionizes Subscriber Carrier Services; New Platform Delivers Comprehensive Voice and Data Services.

TUSTIN, Calif.--(BUSINESS WIRE)--May 20, 1999--

PairGain(R) Technologies, Inc. (NASDAQ:PAIR), a premiere solutions supplier to the telecommunications industry, today announced the release of PG-FlexPlus(TM), a new subscriber carrier platform that enables the cost-effective deployment of multiple voice and data services utilizing DSL technology. PG-FlexPlus combines all the innovative features of PairGain's successful line-powered PG-Flex(R) and PG-Plus(R) platforms with comprehensive voice concentration and unified network management, enabling carriers to increase market penetration while maximizing capital investment. The solution is ideal for both Incumbent and Competitive Local Exchange Carriers (ILECs and CLECs), because PG-FlexPlus enables them to generate new or more profitable revenue streams from integrated voice and data services.

PG-FlexPlus provides a more economical solution for a variety of revenue-generating applications by combining DSL capabilities with GR-303 traffic concentration. With PG-FlexPlus, carriers can provision dedicated DS1 and other services, plus offer much-needed pair relief where copper cable is in short supply. The platform's GR-303 interfaces provide voice and data concentration, so carriers can better utilize the traffic back hauling facilities to a distant switch, maximize switch port utilization and reduce leased line costs. In addition to GR-303, a TR-008 interface is included that provides end-to-end digital connectivity for smaller line counts supporting 56 kbps modem speeds.

"Our new PG-FlexPlus solution gives PairGain customers a competitive edge by combining voice and data services in a flexible platform with truly innovative features," said Bill Fox, vice president for PairGain's Subscriber Carrier Business Unit. "With PG-FlexPlus, carriers get maximum voice and data interface versatility and superior port density from an architecture that supports the rapid deployment and incremental growth of new services. This combination is especially important for carriers looking to cut operating costs through the utilization of embedded equipment, while profiting from the deployment of new service offerings."

PG-FlexPlus installs in a central office (CO) or a fiber fed Digital Loop Carrier (DLC) site. The platform is compatible with both PG-Flex and PG-Plus remote terminals (RTs), so integration into existing installations is seamless. PG-FlexPlus directly connects to a digital switch interface through a TR-008 or GR-303 interface and distributes services to line-powered RTs located at the customer premises.

Line-powered RTs and 56 kbps modem support are two key elements that differentiate PG-FlexPlus from any other product on the market today. Before PG-FlexPlus, carriers could only offer multi-line services through low functionality Digital Added Main Line (DAML) products or channel banks. PG-FlexPlus supports 56 kbps modem speeds, is easier to install, provides a more flexible platform and offers a much lower cost per line.

PG-FlexPlus DSL-fed remotes offer CLECs even greater economic return in other areas. Small business customers -- those with less than 12 lines -- make up the lion's share of the business dial tone market. Carriers using unbundled loops or under-utilized channel banks incur monthly copper lease charges, plus significant one-time capital and installation expenses. With PG-FlexPlus, carriers can deploy a full range of DSL services, optimize their use of limited co-location space and reduce monthly costs.

For nearly all ILEC applications, PG-FlexPlus provides the benefit of pair relief by supporting 4-channel, 6-channel and 24-channel line-powered remotes via two copper pairs. The explosive growth in the copper network has created shortages of coppers pairs in the outside plant. PG-FlexPlus is not only more flexible than traditional solutions, but it also ensures high efficiency of capital expenditures by rapidly generating revenue with the newly installed hardware.

PG-FlexPlus can groom 240 T-1s, and each access shelf provides up to 192 voice channels. A fully equipped dual-bay configuration supports nearly 2,500 voice lines and compresses that traffic into fewer than 35 T-1s (a 3:1 GR-303 concentration ratio).

PG-FlexPlus includes TL1 network management for easy OAM&P from remote network operations centers. The initial release delivers Loop & Ground Start Voice, Centrex P-Phone, ISDN, DDS, with near-term releases supporting dedicated HDSL, frame relay and ADSL/g.lite services.

Pricing and Availability: PG-FlexPlus is available today with prices subject to configuration and quantity.

PairGain Technologies, Inc.

PairGain is a world leader in the design, manufacture and marketing of DSL (Digital Subscriber Line) networking systems. Service providers and private network operators worldwide use PairGain's products to deploy DSL-based services such as high-speed Internet, remote LAN access and enterprise LAN extension.

For more than 10 years, PairGain has been recognized as a technological leader and industry innovator of telecommunications equipment. The Company offers the widest range of DSL solutions available. Its product lines include HiGain(R) T1/E1 access systems, PG-Flex and PG-Plus small subscriber carrier systems, Avidia(R) System and Megabit Modem(R) campus systems and megabit access products. Well over 1.25 million PairGain DSL nodes are installed in over 70 countries. Additional information about the Company is available on the Internet at www.pairgain.com.

Except for the historical information contained herein, the matters discussed in this announcement are forward-looking statements which involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services and prices and other factors discussed in the Company's filings with the Securities and Exchange Commission. All trademarks within are the properties of their respective manufacturers.