Paradyne Raises the Bar for IP Quality of Service; Sophisticated Multimedia Traffic Management System Provides Application-Aware Traffic Shaping to Broadband Loop Carriers.

LARGO, Fla. -- Paradyne (NASDAQ:PDYN), a leading provider of broadband voice, data and video network access solutions, announced today it has launched Multimedia Traffic Management (MTM), a set of tools that provide a higher degree of intelligence with Paradyne products enabling telephone companies to guarantee quality of service to ensure delivery of triple play services.

MTM enables awareness with virtually any IP application or service by making that application visible and controllable. Service providers will now have the ability to correlate an individual data packet with the application transporting the data and ensure the transmission with specific date rates for a given application.

"Paradyne has used standard technologies, which is very important in terms of interoperability," said Todd DeWitt, Chief Technology Officer, Oxford Networks. "However, the magic is in the implementation - MTM lets us identify voice traffic from video traffic, and completely control each. It's like getting a Layer 4 router inside an easy-to-use Layer 2 device. It's the best of both worlds."

This flexibility is especially valuable to those looking to go beyond video, or to those where video doesn't make economical sense. By supporting any service, immediate revenue opportunities such as online gaming and business-class services can be achieved - allowing users of its Broadband Loop Carriers (BLCs) and IP DSLAMs to add applications according to its business plans.

Individually, protocols such as DiffServ, TOS, 802.1p, TCP, UDP and VLANs have been used in Ethernet LANs and MANs for years; when made into a cohesive system, these protocols provide significantly more value. MTM combines a suite of industry standards and protocols to form a cohesive method of identifying and managing Layer 3 and Layer 4 traffic within Layer 2 BLCs.

Providing network and application layer control, yet performing all switching at layer 2 provides some additional advantages, such as extremely low latency for sensitive voice applications, and simplified provisioning - which in turn lowers operational costs.

"Paradyne already provides MTM to more than 55 customers enabling flexible and cost effective solutions to triple play deployments," said Ken Hood, vice president of marketing and product management, Paradyne. "By enabling the true revenue potential of their bandwidth, it's going to take broadband to the next level."

About Paradyne

Paradyne provides a broad family of IP-based broadband access solutions, including BLCs, DSLAMs, Ethernet over Copper Network Extenders, 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, the Paradyne Logo, and ReachDSL are registered trademarks of Paradyne Corporation.