Paradyne and MetaSwitch Announce Successful Completion of Interoperability Testing; Deployment with ACD.net.

SAN JOSE, Calif. -- Michigan CLEC Seamlessly Delivers Voice over IP to Business and Residential-Class Customers Using Paradyne's 8000 Series BLC and MetaSwitch's VP3500 Series Class 5 Softswitch

Paradyne (NASDAQ:PDYN), a leading provider of triple play Broadband Loop Carriers (BLCs), and MetaSwitch, a leading Class 5 softswitch provider, announced today the availability of a joint solution that uses Voice over IP (VoIP) technology to connect traditional phone lines to new IP networks for service providers.

MetaSwitch's Class 5 softswitch and Paradyne's POTS-enabled BLC allows carriers to converge their access networks without intermediate IP/TDM gateways, lowering operating expenses while at the same time enabling high speed DSL and video services over the same infrastructure.

"In order for programs like this to have real value to service providers, it is critical that they have strict and meaningful criteria for interoperability," said Mike Ward, senior vice president of sales, MetaSwitch. "Paradyne has completed our interoperability testing program and we see our Class 5 softswitch and Paradyne's BLC as a dynamic solution that will permit carrier customers to deliver cost effective VoIP services to the existing installed base of millions of analog telephones."

Service providers such as ACD.net look for solutions that allow them to provide high quality telephony services while at the same time not risking their existing network infrastructure. ACD.net, based in Lansing, Mich., has purchased a MetaSwitch VP3500 series softswitch and 43 of Paradyne's BLCs to provide T1 services, high speed Internet access, and VoIP. ACD.net is deploying the joint solution in its Lansing, Jackson, Grand Rapids and St. Joe/Benton Harbor networks.

"With the rigorous interoperability testing program, we have great confidence our customers will receive IP-based voice services with the highest level of quality and security available," said Kevin Schoen, President of ACD.net.

"The certification with MetaSwitch allows us to provide full Class 5 switch features through our BLC using VoIP," said Mike Fox, senior product manager, Paradyne. "With no changes required to the last-mile network or customer premises equipment, service providers can accelerate their migration toward a lower cost single pipe access infrastructure."

Paradyne and MetaSwitch will work together on sales and marketing initiatives, with both companies providing referrals through their existing partner and system integration networks. The companies' verified interoperability enables them to offer service providers a complete, seamless solution that can be rapidly deployed in any network environment.

Paradyne will be exhibiting at VON, booth number 329, March 7-10.

About Paradyne

Paradyne provides a broad family of IP-based broadband access solutions, including BLCs, DSLAMs, LAN Extension products, IADs, and high speed customer premises equipment. Paradyne's products support residential triple play solutions and business class Ethernet in the First Mile solutions with bonded SHDSL, ADSL2+, T1/E1, and DS3 solutions.

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].

About MetaSwitch

MetaSwitch is the industry's leading independent broadband Class 5 softswitch vendor. Its widely deployed Class 5 Softswitch supports over 100 Class 5 features including CLASS services, IP Centrex, E911, LNP, 1-800, and CALEA, and scales from a few hundred to half a million subscribers. Customers include incumbent and competitive local exchange carriers, as well as operators of broadband wireless, cable, and fiber networks.

MetaSwitch is a division of established telecom technology provider Data Connection (DCL). The company is consistently profitable and privately held, with US locations in California, Virginia, Texas and Florida, and European headquarters in London, UK.

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.