Paradyne Announces Flexible High-Density T1/E1 Aggregation; T1/E1 Services Selectable by Port Makes Paradyne's BLC the Most Versatile Solution in the Industry.

LARGO, Fla. -- Paradyne (NASDAQ:PDYN), a leading provider of triple play Broadband Loop Carriers (BLCs), today announced it has introduced its new multi-service T1 and E1 modules for the 8000 Series BLC.

Paradyne has responded to the growing demand for diverse T1/E1 aggregation applications in a single platform and has addressed the market need, providing a cost-effective solution for backhaul environments. Most T1/E1 aggregators are specialized and require a dedicated line card to support individual services such as traditional TDM using CES or MLPPP over ATM T1/E1 circuits. With Paradyne's new 8995 (T1 module) or 8997 (E1 module), each of eight T1 or E1 ports can be designated for a different service, providing up to 144 multi-service T1s or E1s in a single 8000 Series BLC.

Capable of delivering TDM, ATM, circuit emulation, and MLPPP services selectable by port, the T1/E1 modules are extremely well positioned to support evolving aggregation needs. TDM and ATM-based T1 and E1 circuits remain the most widely used telephony and telecommunications technologies today.

"Paradyne's multi-service T1/E1 aggregation platform addresses key business-class market needs: flexible applications, tight platform integration, and lower operational expense," said Ken Hood, Vice President, marketing and product management, Paradyne. "It can be deployed using pure T1/E1 line cards for high scale, or mixed with any combination of bonded SHDSL and ADSL2+ line cards."

In addition to servicing these traditional T1 and E1 markets, the 8995 and 8997 modules enable higher bandwidth circuits via circuit bonding, and provide a clear migration path to IP with an optional gigabit Ethernet uplink.

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 Nov. 9, 2004, 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.