PairGain Lands Optel With PG-FlexPlus Win.

TUSTIN, Calif.--(BUSINESS WIRE)--June 7, 1999--

PairGain(R) Technologies, Inc. (Nasdaq: PAIR), a leader in broadband access systems, today announced that Optel Communications Corporation, a leading provider of alternative local and long distance telephone services in Canada, has standardized on PairGain's PG-FlexPlus(TM) platform for delivering high-quality voice and high speed data services.

The selection of PG-FlexPlus directly supports Optel's decision to utilize DSL technologies in its "Smart Build" approach to building its CLEC business. The agreement represents continued penetration by PairGain into the CLEC market, as well as another sale for the new PG-FlexPlus product line.

Optel's Smart Build network strategy is to secure a customer base first, then build network facilities based primarily on DSL technology. Optel chose PG-FlexPlus to support this strategy, because PG-FlexPlus can multiplex up to 24 lines over two pairs of copper cable. This enables Optel to yield virtually the same gross margins as deploying fiber directly to the customer's site. In addition, the financial risk is low, because capital outlay for network equipment comes after customers are acquired.

"We're extremely pleased to partner with Optel, and feel PG-FlexPlus is the perfect compliment to their Smart Build strategy," said Bill Fox, vice president of PairGain's Subscriber Carrier Business Unit. "This application is ideal for the CLEC market. By supporting multi-line voice and data services to line-powered remotes it reduces their recurring leased line and backhaul costs which will have a direct effect on their bottom lines."

"Our Smart Build strategy requires that we leverage the best that DSL technology has to offer," said Roger Abbiss, founder and chairman of Optel Communications. "PG-FlexPlus enables us to immediately deploy the services we need to grow our business. And PairGain's total solutions approach gives us confidence that our future expansion will be equally successful."

PairGain Technologies, Inc.

PairGain is the 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-based systems available. Product lines include HiGain Solitaire(TM) HDSL2 solutions, HiGain(R) T1/E1 access systems, PG-FlexPlus(TM), PG-Flex(R) and PG-Plus(R) small subscriber carrier systems, Avidia(R) System and Megabit Modem(R) campus systems and megabit access products. Well over 1.5 million PairGain DSL nodes are installed in over 70 countries. Additional information about the Company is available on the Internet at www.pairgain.com.

Optel Communications Corp.

Optel Communications Corporation, is one of Canada's largest alternative local line telephone companies with over 70,000 local lines and 13,000 customers. Since 1995, Optel has provided significant cost savings to small- and medium-sized businesses on local and long distance phone services. Optel has offices in Toronto and Montreal employing over 275 people.

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 are the property of their respective manufacturers.