Paradyne Extends Lead in SHDSL with the Introduction of New Bonded, Extended Rate Broadband Solutions.

LARGO, Fla. -- Extended Rate Bonded G.shdsl IP DSLAM and CPE for Business-Class Services Fill Need for Service Providers Looking to do More with Less

Paradyne (NASDAQ:PDYN), a leading provider of triple play broadband loop carriers (BLCs) and Ethernet access equipment, today introduced the ability to deliver Ethernet services of greater than 10 megabits per second over two copper pairs using extended rate G.shdsl with its new 4279 IP DSLAM and 1750 series CPE.

The 4279 IP DSLAM and the 1750 series CPE complement Paradyne's existing broadband triple play solutions portfolio and can be subtended by existing Paradyne 8000 series and 12000 series IP BLCs. The solutions optimize throughput for business class services and provide technology standards such as extended rate G.shdsl, which boosts SHDSL performance to approximately 5.7 Mbps per pair. Bonding multiple pairs of copper enables even higher bandwidth capabilities, making it the perfect solution to deliver the highly sought after 10 megabit Ethernet service offering.

"Paradyne will increase their presence in the Ethernet over Copper market with their new IP DSLAM products," said Michael Howard, principal analyst, Infonetics Research. "The Paradyne extended rate G.shdsl products give a new option to service providers who are always looking for ways to efficiently and cost-effectively offer higher bandwidth Ethernet services to their copper-based customers."

Despite the ever-growing need for bandwidth, 90 percent of today's office buildings still do not have access to fiber. With Paradyne's extended rate Ethernet over Copper solutions, service providers can significantly reduce the need for trenching and installing expensive fiber connections while capitalizing on the latest 5.7 Mbps per pair capabilities. These solutions complement Paradyne's leading bonded T1/E1 Ethernet solutions to create a complete high-speed offering for business customers who don't have access to fiber.

"With bandwidth-hungry applications, service providers are always looking to do more with less," said Ken Hood, vice president of product management and marketing, Paradyne. "Paradyne's extended rate SHDSL products are another step forward in delivering Ethernet everywhere solutions for our service provider customers. The 4279 IP DSLAM and 1750 series CPE provide a compelling price to performance ratio today compared with the competition."

Already a leader in the rapidly growing Ethernet over Copper market, Paradyne's 1750 series CPE supports the latest in SHDSL standards with extended rate support. The 1750 series CPE is certified interoperable with Paradyne's new 4279 IP DSLAM for multipoint applications, and in addition the CPE can also operate in back-to-back mode for point-to-point applications at symmetric bandwidths and bond up to four pairs for greater bandwidth.

The IP DSLAM market and the Ethernet in the First Mile market continue to expand as service providers offer a wide array of bandwidth-intensive services and applications. Infonetics Research reported in February 2005 that worldwide total IP DSLAM revenue approached $700 million in 2004, up 58 percent from 2003, and is projected to make up 69 percent of total DSLAM revenue by 2008.

About Paradyne

Paradyne provides a broad family of IP-based Broadband Access solutions, including BLCs, MSANs, DSLAMs, Ethernet in the First Mile bonded solutions, IADs, and CPE. Paradyne's products support both residential triple play solutions and business class bonded G.shdsl, ADSL2+, and T1/E1 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-K, 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.