Paradyne Wins ComNet 2000 New Product Achievement Award in Internet/Intranet Category.

Business Editors

TAMPA, Fla.--(BUSINESS WIRE)--Jan. 26, 2000

Paradyne Networks' (Nasdaq:PDYN) new Hotwire(R) ATM SDSL Port Card received top honors as the winner of the Best New Internet/Intranet Offering at the ComNet 2000 Product Achievement Award ceremony held Wednesday evening in Washington, D.C.

The ATM SDSL Port Card delivers on the roadmap introduced with Paradyne's multiservices, next-generation Hotwire GranDSLAM. As part of Paradyne's Hotwire Connected(TM) program, the card interoperates with multi-vendor DSL endpoints and Voice over DSL (VoDSL) gateways providing end users with the ability to select the best equipment to fit their application. The new line card also integrates support for multiple DSL services on a single card reducing Network Service Providers' (NSPs) equipment and operational costs. These services include Voice over DSL, IP data services -- such as high-speed Internet and secure VPNs -- and Service Level Managed Frame Relay over DSL.

The ComNet New Product Achievement Awards are unique in that the finalists are chosen by a wide cross-section of the computer/communications marketplace after a panel of industry experts has narrowed the hundreds of entries down to the best of show. The panel, which includes leading analysts, editors, consultants and users, carefully reviews the entries and selects three product finalists in each of eight categories. The thousands of networking and communications professionals attending ComNet then vote for which new offerings they think are the most innovative and unique.

&uot;We are honored that the distinguished panel of judges as well as the show attendees selected our Hotwire DSL product as the winner in its category,&uot; said Andy May, Paradyne CEO and president. &uot;This award is a great start to a new year as we continue to expand our DSL customer base. We already have Hotwire DSL products deployed in approximately 45 U.S. states, five Canadian provinces and 75 countries.&uot;

&uot;Paradyne's new ATM SDSL card continues to demonstrate the real value of our Hotwire GranDSLAM and the award recognizes the benefit of this product to the industry. With every DSL-based service type that can be added to the DSLAM architecture, you open up a new market opportunity to deploy new revenue-generating services,&uot; said Frank Wiener, vice president of Broadband Access Solutions for Paradyne.

Paradyne's multiservices DSLAM strategy offers the widest range of DSL-based service types including ATM, Frame Relay, IP, TDM and Voice over DSL services utilizing the widest range of DSL transports including MVL(TM) (Multiple Virtual Lines), G.Lite, DMT, SDSL, Rate Adaptive DSL, M/SDSL, M/HDSL and IDSL.

Paradyne's Hotwire ATM SDSL card offers the following benefits:

-- The new card offers 16 ports and is based on the Conexant

Autobaud(TM) chipset to deliver on the promise of open and

interoperable systems. Hotwire Connected partners will leverage

the new ATM SDSL card to deliver interoperable CPE and Gateway

devices.

-- Delivering Quality of Service traffic prioritization, the card

ensures that different traffic types are handled appropriately.

For example, delay-sensitive traffic, such as voice, will receive

a higher priority than data, which is essential for providing

integrated voice and data applications, such as VoDSL.

-- The card facilitates integrated voice and data services on a

single copper loop with highly reliable QoS using Real Time VBR.

ATM supported services include Unspecified Bit Rate (UBR),

Variable Bit Rate (VBR), Real Time VBR (rtVBR) and Constant Bit

Rate (CBR).

-- The card enables the delivery of Service Level Managed Frame

Relay Services over DSL combining traditional frame relay speeds

(including Fractional T1) with the cost advantages of DSL access

while protecting the ability to monitor and verify Service Level

Agreements (SLAs).

PRICING AND AVAILABILITY

The Hotwire 8335 16-port ATM SDSL card for the Hotwire GranDSLAM has a suggested U.S. list price of $8,995 and will be available in April.

ABOUT PARADYNE

Headquartered in the Tampa Bay area, Paradyne is a leading innovator, developer and manufacturer of high-speed network access solutions over copper wire. The company is recognized as a market leader in DSL (Digital Subscriber Line), T1 and Service Level Management products. Paradyne markets its award-winning Hotwire DSL and FrameSaver(R) Service Level Management systems to Network Service Providers (NSPs) and business customers. Paradyne has shipped more than 4,900 Hotwire DSL Access Multiplexers (DSLAMs), for a total capacity of more than 1.3 million lines. Its Hotwire Connected program enables third-party DSL voice gateway and customer premises equipment to interoperate with Paradyne's family of Hotwire products. Paradyne also licenses ETC(R) and Tripleplay(TM) technology, and intellectual property incorporated in the V.90 standard.

For more information on Paradyne and its products, call 1-800-PARADYNE (U.S. and Canada), 1-727-530-8623 or visit www.paradyne.com.

&uot;Safe Harbor&uot; Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Paradyne Corporation's business which are not historical facts are &uot;forward-looking statements&uot; that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the company's registration statement dated September 28, 1999. The company assumes no obligation to update the forward-looking information contained in this press release.

Editors 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, MVL, NextEDGE, OpenLane, Smart Room, Tripleplay and TruePut are trademarks of Paradyne Corporation. ACCULINK, COMSPHERE, ETC, Hotwire, FrameSaver, 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.