Paradyne Introduces Standards-Based SHDSL for TDM and ATM Networks.

Business Editors & Technology Writers

LARGO, Fla.--(BUSINESS WIRE)--May 23, 2001

Paradyne's New Line Cards and Endpoints to Deliver Greater Rates

and Distance with Interoperability to Ensure Best-in-Class Support

Paradyne Networks, Inc. (Nasdaq:PDYN), a worldwide provider of digital subscriber line (DSL) and service level management (SLM) equipment solutions, today introduced a new line of time-division multiplexing (TDM) and asynchronous transfer mode (ATM) products featuring SHDSL (symmetric high bit rate DSL) technology. Utilizing the newly ratified ITU G.shdsl (G.991.2) standard, these products, including the Hotwire(R) 8385 ATM SHDSL line card, the Hotwire 8799 TDM SHDSL line card, and the Hotwire 7995 and 7996 TDM SHDSL endpoints, are ideal for service providers wishing to deploy reliable, standards-based DSL services.

SHDSL is a symmetric, multi-rate DSL offering allowing high-speed data transmission over existing copper wire at higher data rates and greater distance than 2B1Q SDSL. This robust technology's TC-PAM (trellis coded pulse amplitude modulation) line coding, spectral compatibility, and standards-based interoperability simplify deployment for service providers.

"Paradyne continues to fuel the expansion of DSL everywhere with the development of our newest TDM and ATM solutions featuring SHDSL," said Sean Belanger, president and CEO of Paradyne. "SHDSL gives services providers a standards-based technology with service performance beyond 18 Kft. and data rates up to 2.3 Mbps to meet the emerging requirements from end users to perform remote LAN access, video conferencing, and to utilize multiple voice and high-speed data channels. With an extended reach of up to 20 percent further than SDSL technology, our interoperable SHDSL line cards and endpoints give service providers an opportunity to expand into new markets while offering a variety of value-added services to meet customer requirements."

Paradyne's new 24-port ATM SHDSL line card has one of the highest port densities available in the industry and supports multiple DSL services on a single card - reducing service providers' equipment and operational costs. The TDM SHDSL line card offers channelized services with muxing functionality to provide greater flexibility in the number of customer services that can be offered. As members of the Hotwire Connected(TM) program, the Hotwire 8385 ATM and 8799 TDM line cards support interoperability and will work with G.shdsl compliant DSL endpoints and Voice over DSL (VoDSL) gateways giving end users the ability to select the best equipment to fit their particular application. The scalability of bandwidth in these line cards allows service providers the flexibility to offer every customer the exact combination of voice and data services they require. Additionally, the simple to install TDM SHDSL endpoints provide autorate functionality or may be manually set, and provide G.703 or EIA 530A (V.35, RS 449, or X.21) standard data interfaces.

Pricing and Availability

The 8385/8799/7995/7996 SHDSL line cards and endpoints will be available for shipment in the third quarter of 2001. The 24-port 8385 ATM SHDSL line card will have a U.S. list price of $10,995, while the 8-port 8799 TDM SHDSL line card will have a U.S. list price of $6,095 and the 7995 and 7996 TDM SHDSL endpoints will have U.S. list prices of $1,295. Paradyne will showcase the new SHDSL line cards and endpoints at SUPERCOMM 2001 in Atlanta June 5-7.

About Paradyne

Paradyne is a leading developer of carrier-class, high-speed network access solutions. A recognized market leader in digital subscriber line (DSL) and service level management (SLM) solutions, Paradyne markets its award-winning Hotwire DSL, ReachDSL(TM) and FrameSaver(R) Service Level Management systems to service providers and business customers. More than 13,000 Hotwire DSL Access Multiplexers (DSLAMs) have been deployed around the world. Paradyne has shipped over 100,000 ports of its unique ReachDSL solution, giving carriers the ability to deliver broadband over almost any copper lines, even those that are very long or severely impaired. Paradyne's SLM solutions have been deployed into mission-critical enterprise networks by the leading carriers, including AT&T, Bell Canada, Broadwing, Intermedia, SBC, Sprint, Verizon and WorldCom.

Paradyne is headquartered in the Tampa Bay area. More information is available by calling 1-800-PARADYNE (U.S. and Canada), 1-727-530-8623 or visiting www.paradyne.com.

Information about Forward-Looking Statements

This press release contains forward-looking statements. 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 or beliefs as well as assumptions made by, and information currently available to, management. Expressions of current expectations related to revenue, earnings and future business prospects, including, without limitation, "expects," "estimates," "forecast," "continue," or "plans," reflecting something other than historical fact, are intended to identify forward-looking statements. The following factors, among others, could cause Paradyne's actual results to differ materially from those described in the forward-looking statements: the timing and amount of expense reduction; the ability to successfully negotiate a new bank line of credit; the uncertainty of litigation, including putative shareholder class actions; a reliance on international sales; rapid technological change could render Paradyne's products obsolete; the uncertain acceptance of new telecommunications services based on DSL; substantial dependence on network service providers who may reduce or discontinue their purchase of products or services at anytime; the timing and amount of, or cancellation or rescheduling of, orders of Paradyne's products to existing and new customers; possible inability to sustain revenue growth or profitability; dependence on only a few customers for a substantial portion of Paradyne's revenue; highly competitive markets; dependence on sales of access products to Lucent Technologies; dependence on sole and single-source suppliers; and a long and unpredictable sales cycle. For a detailed discussion of these and other factors that could cause Paradyne's actual results to differ materially from those described in the forward-looking statements, please refer to Paradyne's most recent Form 10-K and other filings with the Securities and Exchange Commission.

Editor's Note: Visit Paradyne's virtual pressroom at www.paradyne.com/news_n_events/press_room for product images and/or additional information. Product availability and pricing subject to change without notification. Hotwire Connected, ReachDSL, Smart Room, Tripleplay and TruePut are trademarks of Paradyne Corporation. ACCULINK, COMSPHERE, ETC, Hotwire, FrameSaver, NextEDGE, MVL, OpenLane, Paradyne, the Paradyne logo and Performance Wizard are registered trademarks of Paradyne Corporation. All other service marks and trademarks are the property of their respective owners.